Gujarat Themis Biosyn Ltd shares have surged over 6% following the company's announcement of shareholder approval for a qualified institutional placement (QIP). According to reports from CNBC TV18, the company approved the initiation of a qualified institutional placement of equity shares, each with a nominal value of ₹1, aimed at raising capital from qualified institutional buyers. The board has approved the preliminary placement document, permitted the commencement of the issue in accordance with SEBI ICDR regulations and the Companies Act, and established a regulatory-compliant floor price of ₹372.57 per share, with the option to provide a discount of up to 5%.
In the first quarter of FY27, Gujarat Themis Biosyn achieved operational income of ₹43.79 crore, representing an increase from ₹35.87 crore in the first quarter of FY26. As reported by CNBC TV18, the company experienced a 22% year-on-year rise in standalone net profit, reaching ₹11.07 crore for the June quarter. Profitability also saw significant improvement at the operational level, with the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for Q1 FY27 reported at ₹20.79 crore, with the EBITDA margin expanding to 47.5% from 38.8% in the previous year. The profit before tax (PBT) for the quarter stood at ₹15.17 crore, while the company reported an earnings per share (EPS) of ₹1.02 for Q1 FY27, compared to ₹0.83 in Q1 FY26. Management attributed the growth to healthy sales volumes and improved operational efficiency, which helped boost margins despite higher employee and other costs.
Management outlined significant strategic acquisitions to transform Gujarat Themis Biosyn into a global fermentation-based CDMO player. The company is pursuing the acquisition of MicroBiopharm Japan Co., Ltd., valued at approximately JPY 21.5 billion (~₹1,300 crore), expected to close in Q2FY27 subject to regulatory approvals. This deal aims to broaden GTBL's API and intermediates portfolio across oncology, immunosuppressants, and peptides, leveraging MicroBiopharm's proprietary P450 enzyme library and plasmid DNA technologies. Additionally, GTBL has entered into an agreement with Sanofi to acquire a select product portfolio comprising 13 established brands in tuberculosis and anti-infectives, valued at ~EUR 158 million. This asset-light acquisition includes brands, marketing authorizations, and dossiers, providing immediate access to regulated markets in over 55 countries. Dr. Sachin Patel, Managing Director, stated these moves are major milestones in evolving into a global CDMO player.
The company has practically doubled its fermentation capacity, with the expanded facility expected to be fully operational by the end of August 2026. As reported by CNBC TV18, the gross block increased from ₹62 crore in FY23 to ₹435 crore in FY26, including capital work in progress (CWIP). Of the incremental ₹370 crore added over three years, approximately ₹200 crore pertains to new fermentation and API facilities, targeting an asset turnover ratio of 1.4x to 1.5x. To fund the MicroBiopharm acquisition, GTBL is exploring a mix of debt and equity, with plans to raise up to ₹1,000 crore through equity. Management indicated that interest costs in the target geographies are significantly lower than domestic rates, ensuring the acquired business remains cash flow positive. Promoter pledge levels, which stood at approximately 48.5% as of June 2026, are expected to decrease significantly within 12 to 15 months.
The shares of Gujarat Themis Biosyn are trading higher, having surged over 5% intraday following the QIP announcement. According to CNBC TV18, the rise has eased slightly to over 4%, with the shares having seen a rise of over 36% in the past 6 months. The share price is now at ₹424.55 per share. The company has submitted the preliminary placement document to the exchanges and has announced that its trading window will be closed for designated individuals from 25 August 2026 until 48 hours after the issue price is finalised. This QIP initiative highlights the company's strategy to access institutional capital markets, which may bolster its balance sheet and improve financial flexibility.
