Encube Ethicals Set to Raise Up To Rs 3,000 Crore in IPO as Global Pharmaceutical Platform Files DRHP

Encube Ethicals Set to Raise Up To Rs 3,000 Crore in IPO as Global Pharmaceutical Platform Files DRHP​

Mumbai-based Encube Ethicals has filed the draft red herring prospectus (DRHP) with SEBI to conduct an Initial Public Offering (IPO). The listing aims to raise up to ₹3,000 crore. This move comes as the company solidifies its position as a major pharmaceutical manufacturing platform with advanced global regulatory approvals.

The IPO is structured entirely as an Offer for Sale (OFS), meaning the company will not receive any proceeds from the sale. All IPO funds generated will be distributed to the selling shareholders. Promoters Mehul Madhusudan Shah and Quadria Capital-backed Frontier Investment Holdings are set to offload shares totaling ₹2,000 crore and ₹1,000 crore, respectively.

Structure of the Offer for Sale​

Encube Ethicals' ownership structure prior to the offering includes promoters holding an 80.63 percent stake. Frontier Investment Holdings holds a 15.02 percent stake in the company. The filing details the participation of these key shareholders who are looking to monetize their holdings through the market listing process.

Manufacturing Capacity and Global Reach​

Encube Ethicals operates extensive manufacturing capabilities spread across two facilities located in Goa and Indore. These facilities boast a production capacity of 15,624 metric tonnes. The company's business model is segmented into three critical verticals: global generics, global contract development and manufacturing organisation (CDMO), and India branded formulations.

The pharmaceutical platform serves over 160 global CDMO customers across 50 countries. Its Goa facility holds significant regulatory accolades, having received approval from 11 major authorities. These approvals include the USFDA, EU GMP, EAEU, Japan PMDA, Health Canada, Brazil ANVISA, and Australia's TGA.

Market Headroom and Business Verticals Contribution​

The company maintains a substantial capacity in filling and packaging, totaling 807 million units. This figure is approximately 2.8 times the total US topical market demand projected for FY26. Encube Ethicals stated that this significant headroom allows it to scale volumes across its global generics, CDMO, and India Branded Formulations businesses without relying on third-party manufacturing partners.

Financially, in FY26, the global generics business contributed nearly 47 percent of the topline. The global CDMO business accounted for 42 percent of revenue, while the India branded formulations business contributed 9 percent. Customer distribution shows that global clients represent 64 percent of the business, with Indian customers contributing 36 percent.

Financial Performance Highlights and IPO Mandate​

Encube Ethicals demonstrated strong financial growth, reporting a 74.8 percent year-on-year increase in profit to ₹437 crore for the year ending March 2026. Revenue expanded by 37.5 percent year-on-year to reach ₹1,848.7 crore during the same period.

JM Financial, Axis Capital, and Kotak Mahindra Capital Company have been appointed as the book-running lead managers for the Encube Ethicals IPO. The filing of the DRHP marks a key milestone in the company’s journey toward public market listing.