Encube Ethicals Prepares ₹3,000 Crore Public Offering to Hit Indian Markets This Month
Mumbai-based specialty pharmaceutical company Encube Ethicals Limited is preparing to roll out its initial public offering (IPO) in Mumbai as early as this month. The public issue seeks to raise approximately ₹3,000 crore (around $317 million), capitalising on strong domestic appetite for healthcare and active formulation assets.
The proposed offering is structured entirely as an Offer for Sale (OFS) of equity shares having a face value of ₹1 each. The OFS will see shares offloaded by promoter Mehul Madhusudan Shah and institutional selling shareholder Frontier Investment Holdings Pte. Ltd, an entity associated with healthcare-focused private equity firm Quadria Capital. Because the issue does not contain a fresh issue component, the company itself will receive no proceeds from the listing, with the entirety going to the selling shareholders.
Specialty Formulations and Market Reach
Incorporated in 1995, Encube Ethicals has evolved into an integrated contract development and manufacturing organisation (CDMO) and formulations provider. The company focuses heavily on complex topical and transdermal dosage forms, including gels, creams, ointments, lotions, transdermal patches, and hormonal formulations.
Encube operates across three core business verticals:
- Global Generics: Formulations supplied directly across global generic markets, ranking among top volume suppliers in the United States.
- Global CDMO: Commercial formulation development and contract manufacturing partnerships serving more than 160 pharmaceutical enterprises across 50 international jurisdictions.
- India Branded Formulations: Established consumer healthcare presence anchored by marquee acquired brands such as Soframycin, Sofradex, and Sofracort.
The company's manufacturing and research facilities have secured accreditations from 11 international regulatory agencies, including the US Food and Drug Administration (USFDA), European Union GMP, Japan's PMDA, and the Australian TGA.
Financial Footprint and Issue Management
Encube Ethicals has delivered consistent operational expansion. For the financial year ended March 31, 2026, the company recorded total income of ₹1,911.80 crore, up from ₹1,369 crore in FY25. Its profit after tax (PAT) surged to ₹436.70 crore in FY26 compared to ₹249.60 crore in the preceding fiscal, underpinned by an operating EBITDA of ₹663.30 crore.
The book running lead managers managing the public issue are:
- JM Financial Limited
- Axis Capital Limited
- Kotak Mahindra Capital Company Limited
MUFG Intime India Private Limited has been appointed registrar to the offer. The equity shares will be listed on both the BSE and the National Stock Exchange of India (NSE).
