Virupaksha Organics IPO
Virupaksha Organics Limited has filed a draft red herring prospectus (DRHP) with SEBI for a mainboard IPO, a fresh issue only. SEBI issued its observations on 12 February 2026, so the company can open the IPO any time up to 12 February 2027. The draft proposes a fresh issue only of up to ₹740 crore, with no offer for sale. In FY25 the company made a profit of ₹78.71 crore on revenue of ₹811.71 crore. The price band, lot size and IPO dates are not announced yet.
- Status
- SEBI observations issued12 Feb 2026
- SEBI received draft
- 7 Oct 2025
- Type of issue
- Fresh issue only
- Lead manager
- Axis Capital Limited
- Must open by
- 12 Feb 202712 months from observations
- Price band and dates
- Not announced
Where it stands
Virupaksha Organics IPO: where it stands
SEBI processing status, 30 Oct 2026- Draft filed with SEBI7 Oct 2025
- SEBI reviewDone
- SEBI observations12 Feb 2026
- RHP and price bandNot yet
- Bidding and listingNot yet
SEBI has issued its final observations, which in practice is the go-ahead. The company can now file a red herring prospectus and open the IPO within 12 months.
DRHP at a glance
Virupaksha Organics DRHP at a glance
Draft red herring prospectus, 29 Sep 2025What 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. 211 to 212) and Basis for Issue Price, KPIs (p. 147 to 148)Virupaksha Organics makes active pharmaceutical ingredients (APIs) and intermediates. It had 54 products, 23 APIs and 31 intermediates, on 31 March 2025, across areas such as anti-histamines, analgesics, anti-fungals and anti-diabetics. It also does contract development and manufacturing (CDMO).
Sales in India gave 82.51% of FY25 revenue. It recently bought Progenerics Pharma and Oxygenta Pharmaceutical. It was incorporated in 1997 and is based in Hyderabad.
Revenue by business, FY25
- APIs and intermediates: 96.49%
- CDMO: 3.51%
The offer
DRHP cover page and The Issue (p. 74)| Fresh issue | Up to ₹740 croreMoney goes to the company |
| Shares before the IPO | 6,15,31,937 |
| Pre-IPO placement | Up to ₹148 croreOptional; would reduce the fresh issue |
| Listing | BSE and NSEMainboard, under Regulation 6(1) |
| Lead managers | Axis Capital Limited and SBI Capital Markets Limited |
| Registrar | KFin Technologies Limited |
| Promoters | Chandra Mouliswar Reddy Gangavaram, Balasubba Reddy Mamilla, Chandrasekhar Reddy Gangavaram, Vedavathi Gangavaram, Kondapalli Sandeep Reddy, Kotla Suraj Reddy, Mamilla Nagarjun Reddy, Gangavaram Sri Lakshmi and G Sri Vidya |
What the company plans to do with the money
DRHP, Objects of the Issue (p. 121 to 122)| Object | ₹ crore | Share of fresh issue |
|---|---|---|
| Expanding capacity at Units 1, 2, 4 and 5 | 360.00 | 48.6% |
| Prepaying certain borrowings | 195.00 | 26.4% |
| General corporate purposes (set later, up to 25% of the fresh issue) |
Each object's share of the ₹740 crore fresh issue, shown in the table, is our calculation. Offer expenses are deducted before these amounts.
Financials
DRHP, Summary of Financial Information (p. 77 to 79) and Basis for Issue Price, KPIs (p. 145 to 148), ₹ crore| ₹ crore | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue from operations | 644.84 | 765.99 | 811.71 |
| EBITDA | 90.91 | 139.18 | 144.24 |
| EBITDA margin | 14.10% | 18.17% | 17.77% |
| Profit after tax | 43.09 | 73.68 | 78.71 |
| Diluted EPS (₹) | 7.67 | 13.12 | 13.17 |
| Net worth | 209.71 | 275.31 | 456.62 |
| Cash from operations | 27.09 | 115.30 | 90.32 |
| Return on net worth | 20.57% | 26.79% | 17.25% |
| Net debt to equity | 1.10 | 0.91 | 0.58 |
Restated consolidated figures. Net worth is total equity. Return on net worth uses year-end net worth. Revenue grew about 12.2% a year from FY23 to FY25 (our calculation).
Listed peers named in the draft
DRHP, Basis for Issue Price (p. 147). Peer prices as of 26 Sep 2025 on BSE.The P/E for Virupaksha is not given until the price band is set.
| Company | Diluted EPS (₹) | P/E | RoNW |
|---|---|---|---|
| Virupaksha Organics (FY25) | 13.17 | Set with the price band | 17.25% |
| Supriya Lifescience | 23.35 | 30.02x | 19.17% |
| Alivus Life Sciences | 39.52 | 23.62x | 17.24% |
| Divi's Laboratories | 82.53 | 68.95x | 14.67% |
| Laurus Labs | 6.64 | 125.41x | 8.19% |
| Aarti Drugs | 18.35 | 25.61x | 12.33% |
| Neuland Laboratories | 202.74 | 68.83x | 17.08% |
Risks the draft lists first
DRHP, Risk Factors (p. 37 to 41)- Three therapy areasAnalgesics, anti-histamines and anti-fungals gave 88.27% of FY25 revenue. (Risk factor 1, p. 37)
- InspectionsRegulator and customer audits could find quality problems and bring action. (Risk factor 2, p. 38)
- Key customersThe top 10 customers gave 41.87% of FY25 revenue. (Risk factor 3, p. 39)
- Pollution noticesClosure directions have been issued for Unit 3 and Unit 6 over alleged water pollution breaches. (Risk factor 4, p. 39)
- AcquisitionsIt may not integrate its recent acquisitions of Progenerics and Oxygenta well. (Risk factor 5, p. 40)
- Hazardous workIts operations use hazardous materials that could cause suspensions, injuries or pollution. (Risk factor 6, p. 41)
Documents
Virupaksha Organics 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
Virupaksha Organics IPO FAQs
When will the Virupaksha Organics IPO open?
The date is not announced. SEBI issued observations on 12 February 2026, and SEBI rules require the IPO to open within 12 months of that date, so by 12 February 2027 (our calculation). The company announces the dates in its red herring prospectus and price band notice.
Has SEBI approved the Virupaksha Organics IPO?
Yes. SEBI issued its final observations on 12 February 2026 (SEBI processing status archive, April 2025 to March 2026). SEBI does not "approve" an IPO as such; its observations let the company go ahead.
What is the Virupaksha Organics 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 Virupaksha Organics 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 Virupaksha Organics IPO?
Axis Capital 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.
What will Virupaksha Organics do with the IPO money?
According to the DRHP, the fresh issue money goes to expanding capacity at Units 1, 2, 4 and 5 (₹360.00 crore), prepaying certain borrowings (₹195.00 crore), and the rest to general corporate purposes.
What does Virupaksha Organics do?
Virupaksha Organics makes active pharmaceutical ingredients (APIs) and intermediates. It had 54 products, 23 APIs and 31 intermediates, on 31 March 2025, across areas such as anti-histamines, analgesics, anti-fungals and anti-diabetics. It also does contract development and manufacturing (CDMO).
Where can I read the Virupaksha Organics DRHP?
On SEBI's website, where the draft red herring prospectus was published on 8 October 2025. The draft is dated 29 September 2025 and runs to 492 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 29 September 2025. Day counts and the last date to open are our calculations. This page is information only, not a recommendation.