Survival Technologies Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India to raise around Rs 1,000 crore in an initial public offering.

The IPO includes a new issue of Rs 200 crore and a sale offer of up to Rs 800 crore from existing promoters and shareholders. The OFS has Vijaykumar Raghunandanprasad Agrawal, up to Rs 544.41 crore, Nirmai Vijay Agrawal, up to Rs 212.41 crore and Prabha Vijay Agarwal, up to Rs 43.18 crore.

Proceeds from the new shares worth Rs 175 crore will fund its working capital and meet future demand for its products, growth needs and other business purposes. The company has a working capital of Rs 430 crore as of October 2022.

JM Financial Ltd and ICICI Securities Ltd are the lead managers for the offering.

The company is an Indian speciality chemicals manufacturer specialising in Contract Research and Manufacturing Services (CRAMS). It is one of the few speciality chemical companies in India that manufactures select heterocyclic and fluoro organic products for sale in India and abroad.

The company undertakes CRAMS for many companies at home and abroad. According to the agreement with the customer, the R&D team develops products for the company in the laboratory according to the specifications provided by the customer, ensuring that the proprietary information and technical know-how related to R&D belong to the company.

From April 1, 2007, to March 31, 2022, it synthesised 677 products, of which more than 500 have been commercially produced and sold in its export markets to various customers.

The company has three manufacturing plants, two in Ankleshwar and one in Sarigam, Gujarat. The Ankleshwar facility has an annual installed capacity of 500 and 50 tonnes, respectively, as of March 2022, while the Sarigam unit has an annual installed capacity of 2,260.

The company said it imports certain raw materials from China. Raw materials imported from China cost Rs 67.17 crore in FY22 compared to Rs 93.96 crore a year ago.

For FY22, the company reported revenue of Rs 311.78 crore against Rs 274.79 crore a year ago. Net profit for the period was Rs 73.46 crore compared to Rs 56.32 crore last year. The EBITDA margin was 29.48%, up from 25.35% last year.