Mumbai-based Encube Ethicals, the Quadria Capital-backed pharmaceutical formulations platform, has filed the draft red herring prospectus (DRHP) with SEBI to raise up to ₹3,000 crore through an initial public offering. According to reports from The Hindu BusinessLine and NDTV Profit, the IPO consists entirely of an offer for sale (OFS), with no fresh issue component, meaning the company will not receive any proceeds from the offer. The entire IPO proceeds will go to the selling shareholders. As per Encube Ethicals, the company expects that listing of the equity shares will enhance its visibility and brand image as well as provide a public market for the equity shares in India.
Promoter Mehul Madhusudan Shah proposes to sell shares worth ₹2,000 crore through the OFS, while Quadria Capital-backed Frontier Investment Holdings will offload shares worth ₹1,000 crore. As reported by The Hindu BusinessLine and NDTV Profit, the promoters hold an 80.63 percent stake in the company, while Frontier Investment Holdings owns a 15.02 percent stake. JM Financial, Axis Capital, and Kotak Mahindra Capital Company have been appointed as the book-running lead managers for the IPO, with MUFG Intime India Pvt Ltd serving as the registrar. The share allocation includes 50 percent for qualified institutional buyers (QIBs), 35 percent for retail individual investors (RIIs), and 15 percent for non-institutional investors (NIIs).
Encube Ethicals, founded in 1995, operates as a manufacturing platform with a production capacity of 15,624 metric tonnes across two manufacturing facilities in Goa and Indore. According to the company's filing, it serves more than 160 global CDMO customers across 50 countries through three verticals: global generics, global contract development and manufacturing organisation (CDMO), and India branded formulations. The company is among the few global companies with a comprehensive suite of development and manufacturing abilities across non-sterile topical dosage forms, including lotions, gels, creams, pastes, non-aerosol sprays, solutions, transdermal patches and hormone products. Its Goa facility has been approved by 11 regulatory authorities, including the USFDA, EU GMP, EAEU, Japan PMDA, Health Canada, Brazil ANVISA, and Australia's TGA, enabling supply to multiple regulated markets including the United States, United Kingdom, Europe, and India. The company's operations are supported by a workforce of 1,684 employees as of March 31, 2026.
The company reported strong financial performance for the year ended March 2026, with revenue from operations at ₹1,848.7 crore and net profit at ₹436.7 crore. As reported by The Hindu BusinessLine and NDTV Profit, the global generics business contributed nearly 47 percent to the company's topline in FY26, while the global CDMO business accounted for 42 percent and the India branded formulations business contributed 9 percent. The company's total installed filling and packaging capacity of 807 million units is approximately 2.8 times the total US topical market demand in FY26, providing significant headroom for growth across its global generics, global CDMO and India Branded Formulations businesses.
Shares of Encube Ethicals will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) following the completion of the IPO process. The company stated that this public listing will enhance its visibility and brand image while providing a public market for equity shares in India. Encube Ethicals serves 50 nations, including regulated markets like the United States, United Kingdom, Europe, and India, positioning itself as a global pharmaceutical formulations platform with in-depth domain expertise in technically complex topical and transdermal dosage forms.
