Virupaksha IPO

About Virupaksha

Virupaksha Organics Limited is an Indian pharmaceutical company incorporated on November 3, 1997, originally as DRK Chemicals Private Limited. It was subsequently renamed and converted into a public limited company in 2012. The Company is headquartered in Hyderabad, Telangana. The Company is promoted by Chandra Mouliswar Reddy Gangavaram, along with members of the Gangavaram and Mamilla families. The promoters are actively involved in guiding the Company’s strategy and growth.Virupaksha is a research and development-driven pharmaceutical company engaged in the manufacture of active pharmaceutical ingredients (APIs) and intermediates. It also operates a contract development and manufacturing (CDMO) business, leveraging its R&D and manufacturing capabilities to provide services to third-party customers. The Company has a diversified portfolio of 54 products, comprising 23 APIs and 31 intermediates, supported by multiple manufacturing facilities. Its business model combines domestic and international product sales with long-term CDMO partnerships. Its key strengths include strong R&D capabilities, an integrated manufacturing infrastructure, a broad product portfolio, and established customer relationships across therapeutic segments.

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Financials of Virupaksha

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Issue size

Funds Raised in the IPO	Amount
Total issue size	740
Fresh Issue – Proceeds go to the company	740

Utilisation of proceeds

Purpose	INR crores (%)
Funding capital expenditure for capacity expansion	360 (48.65%)
Prepayment of outstanding borrowings	195 (26.35%)
General corporate purposes	185 (25%)

Strengths

• R&D-driven pharma company with strong process and development capabilities.
  
• Diversified portfolio of 54 products, including 23 APIs and 31 intermediates.
  
• Delivered 12.2% revenue CAGR between FY23–FY25.
  
• Wide global presence with commercial reach in 100+ countries.
  
• Strong return ratios with healthy ROE and ROCE levels.

Risks

• High revenue concentration in analgesics, anti-histamines and anti-fungals.
  
• Significant dependence on the API segment for revenue.
  
• Subject to extensive regulatory approvals and compliance requirements.
  
• Borrowings secured against assets and backed by promoter guarantees.
  
• Past impairment of investment in associate due to operational losses.