Laurus Labs files draft papers for public issue

G Naga Sridhar Hyderabad | Updated on January 17, 2018

The issue comprises a fresh share sale to mop up ₹300 crore and an OFS by promoters as well as PE players Warburg Pincus and Eight Roads Ventures

Laurus Labs, a ₹1,791-crore turnover pharma company has filed a draft red herring prospectus (DRHP) for its nitial public offer.

The Hyderbad-based company, which makes anti-retroviral active pharmaceutical ingredients, proposes to come with a fresh issue of shares aggregating to ₹300 crore and an offer-for-sale by shareholders including PE firm Warburg Pincus. The proceeds are likely to be used to repay term loans and to fund general corporate activities.

“The DRHP has been filed on August 19, 2016,” a company spokesperson told BusinessLine here. The issue comprises a fresh share sale to mop up ₹300 crore and an OFS by promoters as well as Warburg Pincus and Eight Roads Ventures.

₹132 cr net in FY16

Set up in 2005 by Satayanarayana Chava alongwith some others, the company posted ₹1,791 crore revenue in FY16 as against ₹1,360 crore in FY15. Net profit in FY16 was ₹132 crore, while it stood at ₹58 crore in the previous year.

Others shareholders of the company include Warburg Pincus (30.41 per cent) FIL Capital, part of Eight Roads Ventures (18.52) and Aptuit (9.17).

Owns 32 patents

The company operates three manufacturing facilities in Visakhapatnam. It is setting up two additional facilities and R&D centres in Hyderabad and Greater Boston, US.

Laurus Labs owns 32 patents and has 150 pending patent applications in several countries. It has launched 59 products since inception. The company’s key customers include Aspen Pharmacare, Aurobindo Pharma and Cipla, among others.

Laurus is a ‘leading’ independent supplier of APIs in ARV therapeutic area to formulation companies catering to the large and fast-growing donor-funded access to medicines markets in low- and middle-income countries of sub-Saharan Africa, South-East Asia and Latin America.

“We believe that we are favourably positioned to benefit from near-term patent expiry of ARV drugs in the regulated markets of the US and Europe,” the firm claimed in the filing.

Published on August 29, 2016

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