Encube Ethicals filed DRHP with SEBI to launch IPO; eyes Rs 3,000 crore OFS issue

Mumbai-based Encube Ethicals has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO is a complete offer for sale of Rs 3,000 crore by promoter Mehul Madhusudan Shah and investor selling shareholder Frontier Investment Holdings Pte. Ltd.

The issue will be made through the book-building process in line with the SEBI ICDR Regulations. Not more than 50 per cent of the issue is reserved for qualified institutional buyers, not less than 15 per cent for non-institutional investors, and not less than 35 per cent for retail individual investors.

Incorporated in 1995, Encube Ethicals is a global specialty pharmaceutical formulations platform focused on technically complex topical and transdermal dosage forms. As of March 31, 2026, it served 50 countries, including regulated markets such as the United States, the UK and Europe, apart from India. The company operates through three verticals: Global Generics, Global CDMO, and India Branded Formulations, supported by a common platform of research and development, manufacturing infrastructure, quality management systems, and supply chain capabilities.

With over 28 years of operations, the company had an aggregate installed filling and packaging capacity of 807 million units as of March 31, 2026, which, according to the F&S Report, corresponds to about 2.8 times the total US topical market demand in Fiscal 2026.

Its manufacturing facilities have accreditations from 11 regulatory authorities, including the USFDA, EU GMP, EAEU, Japan PMDA, Health Canada, Brazil ANVISA and TGA Australia. Its operations were supported by 1,684 employees as of March 31, 2026. The company also runs the USFDA-approved Encube Advanced Research Centre in Palava, Mumbai, spread across 117,252 square feet, with a team of 228 employees, including 12 PhDs.

According to the F&S Report, the company is the only Indian topical CDMO among the assessed peers with the ability to serve multiple regulated markets as of March 31, 2026. In fiscals 2026, 2025 and 2024, regulated markets contributed Rs 477.7 crore, Rs 331.1 crore and Rs 394.8 crore respectively, accounting for 61.02 per cent, 51.49 per cent and 66.89 per cent of its Global CDMO revenue.

As of March 31, 2026, the company served over 160 pharmaceutical companies across 50 countries and had a portfolio of over 550 SKUs, primarily focused on regulated markets. Revenue from operations rose to Rs 1,848.7 crore in FY26 from Rs 1,085.9 crore in FY24, while net profit increased to Rs 436.7 crore from Rs 156.1 crore.

JM Financial, Axis Capitaland Kotak Mahindra Capital Company are the book running lead managers, while MUFG Intime India is the registrar to the issue. The shares are proposed to be listed on the BSE and NSE.