Mumbai: Ahmedabad-based pharma company Eris Lifesciences Ltd on Friday said it will be launching its initial public offering (IPO) on 16 June.
The company has set a price band of Rs600-603 per share for the IPO. The offering, which closes on 20 June, will raise Rs1,741.1 crore at the upper end of the price band.
The IPO is a pure offer for sale by existing investors of the company, and will not be raising any primary capital for investing in its business activities. Existing shareholders ChrysCapital and other individual shareholders in the company are offering to sell 28.87 million shares through the initial share sale.
Private equity firm ChrysCapital, which holds a 16.25% stake in the company, will sell all of its 22.34 million shares, while founder Amit Bakshi, who holds 39.97%, will sell a 0.5% stake. Other investors including Rakesh Shah, Rajendra Patel, Kausal Shah and Inderjeet Negi too, will sell shares.
For ChrysCapital, an active investor in the Indian pharmaceutical and healthcare space, Eris Life’s IPO will provide another exit with a good return. ChrysCapital, which invested about Rs200 crore in Eris in 2011 for a 16.25% stake, will make about Rs1,347 crore through its exit, reaping close to seven times return.
Eris develops, manufactures and commercializes branded pharmaceutical products in select therapeutic areas within the chronic and acute categories like cardiovascular, anti-diabetics, vitamins, gastroenterology, and anti-infectives.
For the year 2016-17, Eris reported revenue of Rs707.4 crore, up from Rs608.7 crore in the previous fiscal year. It reported a profit of Rs242.5 crore in 2016-17, a significant jump from Rs137.9 crore in the previous year.
Earlier this week, Mint had reported that several companies, including Eris Lifesciences, are gearing up to launch their IPOs in June. These include telecom equipment maker Tejas Networks Ltd, depository services firm CDSL Ltd and Au Small Finance Bank Ltd. Collectively, these four firms are looking to raise over Rs5,000 crore through their initial share sales.
So far this year, eight companies have raised Rs6,335.83 crore through IPOs, while last year 26 companies raised Rs26,493.84 crore through this route.