Encube Ethicals IPO
Encube Ethicals Limited has filed a draft red herring prospectus (DRHP) with SEBI for a mainboard IPO, a offer for sale only. As of SEBI's report dated 30 October 2026, the draft is under SEBI review. The draft proposes an offer for sale only of up to ₹3,000 crore of shares by promoter Mehul Madhusudan Shah (₹2,000 crore) and investor Frontier Investment Holdings (₹1,000 crore). In FY26 the company made a profit of ₹436.70 crore on revenue of ₹1,848.70 crore. The price band, lot size and IPO dates are not announced yet.
- Status
- Under SEBI reviewSEBI report, 30 Oct 2026
- SEBI received draft
- 3 Aug 2026
- Type of issue
- Offer for sale only
- Lead manager
- JM Financial Limited
- Last SEBI contact
- 29 Oct 2026
- Price band and dates
- Not announced
Where it stands
Encube Ethicals IPO: where it stands
SEBI processing status, 30 Oct 2026- Draft filed with SEBI3 Aug 2026
- SEBI reviewUnder SEBI review
- SEBI observations
- RHP and price bandNot yet
- Bidding and listingNot yet
SEBI is examining the draft offer document. This is SEBI's own list of drafts under process.
SEBI received the draft on 3 August 2026, 95 days ago, and its last communication on the draft was on 29 October 2026 (day count is our calculation).
DRHP at a glance
Encube Ethicals DRHP at a glance
Draft red herring prospectus, 1 Aug 2026What the company's draft offer document says. Figures can change in the red herring prospectus, and nothing here is a review or a recommendation.
The business
DRHP, Our Business (p. 224 to 225) and Risk Factors (p. 21)Encube Ethicals makes topical and transdermal medicines such as creams, lotions, gels, sprays, patches and hormone products. It has three businesses: global generics, contract development and manufacturing for other drug companies, and branded medicines in India, led by the Soframycin brand. It sold in 50 countries as of 31 March 2026, including the US, UK and Europe.
It has two plants, in Goa and Indore, and an R&D centre at Palava, Mumbai, with 1,695 employees as of 31 March 2026. The Goa plant gave 85.12% of FY26 revenue. The company was incorporated in 1995 and is based in Mumbai.
Revenue by business, FY26
- Global generics: 46.61%
- Global contract manufacturing (CDMO): 42.34%
- India branded medicines (ours): 8.97%
- Other (ours, the remainder): 2.08%
The offer
DRHP cover page and The Offer (p. 81)| Offer for sale | Up to ₹3,000 crorePromoter Mehul Madhusudan Shah sells up to ₹2,000 crore (average cost ₹0.08 a share); Frontier Investment Holdings sells up to ₹1,000 crore (average cost ₹199.31) |
| Shares before the IPO | 30,38,84,790Face value ₹1. No new shares are issued |
| Listing | BSE and NSEMainboard, under Regulation 6(1) |
| Lead managers | JM Financial Limited, Axis Capital Limited and Kotak Mahindra Capital Company Limited |
| Registrar | MUFG Intime India Private Limited |
| Promoter | Mehul Madhusudan Shah |
Financials
DRHP, Summary of Restated Consolidated Financial Information (p. 84 to 86) and Basis for Offer Price, KPIs (p. 127 to 131), ₹ crore| ₹ crore | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from operations | 1,085.90 | 1,344.80 | 1,848.70 |
| EBITDA | 297.60 | 452.10 | 663.30 |
| EBITDA margin | 27.41% | 33.62% | 35.88% |
| Profit after tax | 156.10 | 249.60 | 436.70 |
| Diluted EPS (₹) | 5.13 | 8.21 | 14.36 |
| Net worth | 1,241.20 | 1,492.90 | 1,912.30 |
| Cash from operations | 181.90 | 299.80 | 303.10 |
| Return on equity | 13.41% | 18.26% | 25.65% |
| Debt to equity | 0.20 | 0.17 | 0.13 |
| Net working capital (days) | 143 | 141 | 143 |
Restated consolidated figures. Net worth is total equity. Revenue grew about 30.5% a year from FY24 to FY26 (our calculation).
Listed peers named in the draft
DRHP, Basis for Offer Price (p. 128 to 129). Peer prices as of 31 Jul 2026 on BSE.The P/E for Encube is not given until the price band is set.
| Company | Diluted EPS (₹) | P/E | RoNW |
|---|---|---|---|
| Encube Ethicals (FY26) | 14.36 | Set with the price band | 25.21% |
| Dr. Reddy's Laboratories | 50.35 | 22.79x | 11.75% |
| Lupin | 116.44 | 20.73x | 26.90% |
| Zydus Lifesciences | 50.09 | 22.49x | 19.74% |
| Aurobindo Pharma | 60.34 | 26.17x | 9.94% |
| Glenmark Pharmaceuticals | 48.24 | 46.30x | 14.07% |
| Alembic Pharmaceuticals | 34.33 | 23.22x | 12.42% |
| Rubicon Research | 15.31 | 97.49x | 26.97% |
| Gland Pharma | 62.28 | 40.21x | 10.53% |
| OneSource Specialty Pharma | -6.44 | NA | -1.26% |
Risks the draft lists first
DRHP, Risk Factors (p. 21 to 31)- Two businessesGlobal generics and global contract manufacturing together gave 88.95% of FY26 revenue (our sum). (Risk factor 1, p. 21)
- Exports74.00% of FY26 revenue came from outside India, mostly the US and Europe. (Risk factor 2, p. 23)
- Quality inspectionsPlants face regular regulator and customer audits, and any quality failure could lead to action or lost contracts. (Risk factor 3, p. 24)
- Key customersThe top 10 customers gave 59.74% of FY26 revenue. (Risk factor 5, p. 27)
- R&D spendingR&D was 7.44% of FY26 revenue and may not lead to products that sell. (Risk factor 6, p. 29)
- Goa plantThe Goa plant gave 85.12% of FY26 revenue, so any shutdown there would hurt. (Risk factor 8, p. 31)
Documents
Encube Ethicals DRHP and documents
SEBI filingsThe DRHP has the issue size, use of the money, financials, promoters and risk factors. It can change before the final red herring prospectus.
Questions
Encube Ethicals IPO FAQs
When will the Encube Ethicals IPO open?
The date is not announced. The company first needs SEBI's observations on its draft, then files a red herring prospectus with the dates. SEBI received the draft 95 days ago (our calculation).
Has SEBI approved the Encube Ethicals IPO?
SEBI is examining the draft offer document. This is SEBI's own list of drafts under process. Source: SEBI processing status as on 30 October 2026.
What is the Encube Ethicals IPO price band and lot size?
Not announced. The price band is published at least two working days before the IPO opens, and the lot size is set with it. We add both here the day they are filed.
What is the Encube Ethicals IPO GMP?
We do not publish a GMP. Grey market premium is unofficial: it is not regulated by SEBI and not published by any exchange. Before the price band is announced there is no issue price to compare it with.
Who is the lead manager of the Encube Ethicals IPO?
JM Financial Limited is the coordinating book running lead manager named in SEBI's processing status report. The DRHP lists all the lead managers and the registrar.
Does Encube Ethicals get any money from the IPO?
No. According to the DRHP, the IPO is an offer for sale only, of up to ₹3,000 crore. The money goes to the selling shareholders, not the company, and no new shares are issued.
What does Encube Ethicals do?
Encube Ethicals makes topical and transdermal medicines such as creams, lotions, gels, sprays, patches and hormone products. It has three businesses: global generics, contract development and manufacturing for other drug companies, and branded medicines in India, led by the Soframycin brand. It sold in 50 countries as of 31 March 2026, including the US, UK and Europe.
Where can I read the Encube Ethicals DRHP?
On SEBI's website, where the draft red herring prospectus was published on 6 August 2026. The draft is dated 1 August 2026 and runs to 503 pages. It has the issue size, use of the money, financials and risk factors.
Sources: SEBI processing status of draft offer documents as on 30 October 2026, SEBI's yearly processing status archive and SEBI's list of draft offer documents, and the company's DRHP dated 1 August 2026. Day counts and the last date to open are our calculations. This page is information only, not a recommendation.