Macleods Pharmaceuticals Ltd, a vertically integrated pharmaceutical company, on Tuesday filed its draft prospectus for a public share sale that could see it raise as much as ₹5,000 crore.
The initial public offering (IPO) is a pure secondary share sale by the promoters, who will be selling up to 60.48 million shares. Since the public issue is an OFS, the selling shareholders will be entitled to the entire proceeds of the offer and the company will not receive any proceeds from it.
Macleods develops, manufactures and markets a wide range of formulations across major therapeutic areas such as anti-infectives, cardiovascular, anti-diabetic, dermatology, and hormone treatment.
It is wholly-owned by its promoter and promoter group, and has grown organically since inception—through internal accruals, and without raising any external funding from private equity players.
According to the draft papers, Macleods was the seventh largest pharma company in India during the six months ended 30 September 2021, based on domestic sales.
It domestic business comprises branded generics, which accounted for 51.73% of its total revenue from operations in fiscal 2021.
Macleods employed more than 4,900 medical representatives in India as of 30 September. Domestic sales from non-metro cities represented 80% of its total domestic sales in fiscal 2021.
The company also has presence in developed and emerging markets, including North America, Europe, Africa, Asia, South America, and the Commonwealth of Independent States. Revenue from operations outside India grew at a compounded annual growth rate (CAGR) of 21.51% from fiscal 2019 to fiscal 2021, and represented 48.27% of revenues from operations in fiscal 2021.
Its earnings before interest, taxes, depreciation, and amortization, or Ebitda margin, increased from 22.84% in FY19 to 24.98% in FY20, and 29.12% in fiscal 2021. Profit after tax margin rose from 20.31% in FY19 to 21.17% in fiscal 2020, and 22.65% in FY21.
Investment banks Kotak Mahindra Capital, Citigroup, Edelweiss Financial Services Ltd, ICICI Securities Ltd and Nomura are advising the company on the IPO.
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