SPC Life Sciences a leading manufacturer of advanced intermediates for certain key active pharmaceutical ingredients (APIs) has filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI).

Equipped with a US FDA-approved facility for 6-Chloro-Hexane-2-One, the company can develop pharma intermediates and work with pharmaceutical companies who seek US FDA-compliant manufacturing facilities as a part of their supply chain.

The company plans to raise funds through an initial public offering comprising (i) a fresh issue of equity shares aggregating up to Rs 3,000 million and (ii) an offer for the sale of up to 8,938,870 equity shares. The face value of equity shares is Rs 10 each. 

The company proposes to utilise the net proceeds of the Fresh Issue towards funding the following objectives- (i) Re-payment/Prepayment of certain outstanding borrowings availed by the company amounting to Rs 550 million; (ii) Funding of capital expenditure requirements of the Company towards setting up Phase - 2 at Dahej facility to expand its product offerings of pharmaceutical intermediates amounting to be Rs 1,223.23 million; (iii) Funding working capital requirements amounting to Rs 400 million and (iv) balance amount towards general corporate purposes.

The offer for the sale of equity shares comprises up to 8,938,870 equity shares by Snehal Ravjibhai Patel. (The Promoter Selling Shareholder)

Ambit and HDFC Bank are the Book Running Lead Managers to the IPO issue.

The advanced pharmaceutical intermediates (pharma intermediates) manufactured by the company are used in certain growing therapeutic areas including cardiovascular, vasodilator (anti-platelet), anti-psychotic and anti-depressants, with significant market share both in India and globally for some of the products.