Macleods Pharmaceuticals files draft papers with Sebi for Rs 5,000-cr IPO

Macleods Pharmaceuticals has filed preliminary papers with capital markets regulator Sebi to mop-up Rs 5,000 crore through an initial public offering (IPO).

The initial share-sale is entirely an offer-for-sale (OFS) of up to 6.05 crore equity shares by promoters, according to the draft red herring prospectus (DRHP).

As per the DRHP, a portion of the IPO would be reserved for subscription for eligible employees.

Since the public issue is an OFS, the selling shareholders will be entitled to the entire proceeds of the offer and the company will not receive any proceeds from the public issue.

According to merchant banking sources, the size of the IPO is expected to be Rs 5,000 crore.

Macleods is engaged in developing, manufacturing, and marketing a wide range of formulations across several major therapeutic areas including anti-infectives, cardiovascular, anti-diabetic, dermatology, and hormone treatment.

The company is present across regions in India, through its sales team that comprised more than 4,900 medical representatives in India as on September, 2021.

Further, it has an extensive global presence in more than 170 countries across developed and emerging markets such as North America, Europe, Africa, Asia, South America, and the Commonwealth of Independent States.

Macleods is wholly-owned by its promoter and promoter group, and has grown organically since inception – through internal accruals, and without raising any external funding from private equity players.

Kotak Mahindra Capital Company, Citigroup Global Markets India, Edelweiss Financial Services, ICICI Securities and Nomura Financial Advisory and Securities (India) Private Limited are the book running lead managers to the IPO.

In August 2021, Emcure Pharma had filed draft papers with Sebi for a proposed Rs 4,500 crore- Rs 5,000 crore initial share-sale.