SPC Life Science Ltd has filed preliminary documents with the Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering.

The company plans to raise up to Rs 300 crore through the issue of new shares and an offer to sell up to 89.4 lakh shares by its current promoter, Snehal Ravjibhai Patel. Currently, Patel holds a 98.18% stake in the company.

Funds raised from the new issue amounting to Rs 55 crore will be used to repay debt, while Rs 40 crore will be used to meet the company’s working capital needs.

Also, SPC Life Science Ltd plans to allocate Rs 122.33 crore for capital expenditure to establish Phase II at its Dahej facility to expand its product offering of pharmaceutical intermediates.

This new facility will be able to produce xanthene derivatives, as well as some other intermediates and KSM APIs for use in the antidepressant and antipsychotic therapeutic areas.

Until February 2023, the company has operated four manufacturing zones at one site in Ankleshwar, Gujarat. In March 2023, SPC Life Science Ltd successfully commissioned the first phase of its new production facility in Dahej, Gujarat. The new facility includes an automated manufacturing area (Dahej Block – 1) with programmable logic controllers, utilities, storage facilities, quality control laboratories and administrative facilities.

Ambit Pvt Ltd and HDFC Bank are the lead managers on the issue.

SPC Life is a renowned Indian manufacturer of advanced intermediates to manufacture essential Active Pharmaceutical Ingredients (API), including Amiodarone HCl, Pentoxifylline, Cilostazol, Trazodone, Trama Dolphin and Paxil.

Since its establishment, the company has successfully developed and commercialised more than 50 API pharmaceutical intermediates in 11 different therapeutic areas, focusing on the research and development of specific therapeutic areas such as hemorheological cardiovascular, antiarrhythmic cardiovascular, and antiplatelet vasodilators, Antipsychotics and Antidepressants and Pain Relief Drugs for domestic and global pharmaceutical markets.

In the fiscal year 2021-2022, the company’s revenue rose to Rs 145.64 crore from Rs 132.95 crore in the previous year. Net profit for the period also rose to Rs 19.23 crore from Rs 16.67 crore. The company’s EBITDA margin expanded to 20.62% in FY22 from 16.96% in the previous year. The company has a total debt of Rs 60.61 crore as of September 2022.