Encube Ethicals, a Mumbai-based specialty pharmaceutical company, has officially submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The proposed IPO is entirely an Offer For Sale (OFS) valued at Rs 3,000 crore.
The OFS will see shares sold by promoter Mehul Madhusudan Shah and investor selling shareholder Frontier Investment Holdings Pte. Ltd. The issue will be conducted through a book-building process, adhering to SEBI ICDR Regulations, with specific reservations: not more than 50 per cent for Qualified Institutional Buyers (QIBs), not less than 15 per cent for Non-Institutional Investors (NIIs), and not less than 35 per cent for retail individual investors.
Global Reach and Specialization
Incorporated in 1995, Encube Ethicals specializes in technically complex topical and transdermal dosage forms. As of March 31, 2026, the company served over 160 pharmaceutical firms across 50 countries, including highly regulated markets such as the United States, the UK, and Europe, in addition to India. Its product portfolio comprises more than 550 SKUs, primarily targeting these regulated markets.
The company operates through three main verticals: Global Generics, Global CDMO (Contract Development and Manufacturing Organization), and India Branded Formulations. These operations are supported by a unified platform encompassing research and development, manufacturing infrastructure, quality management systems, and robust supply chain capabilities.
Operational Strength and Financial Growth
With over 28 years in operation, Encube Ethicals boasted an aggregate installed filling and packaging capacity of 807 million units as of March 31, 2026. This capacity, according to an F&S Report, represents approximately 2.8 times the total US topical market demand in Fiscal 2026. Its manufacturing facilities hold accreditations from 11 regulatory authorities, including the USFDA, EU GMP, Japan PMDA, Health Canada, and TGA Australia.
The company also runs the USFDA-approved Encube Advanced Research Centre in Palava, Mumbai, spanning 117,252 square feet and employing 228 individuals, including 12 PhDs. The F&S Report highlights Encube Ethicals as the sole Indian topical CDMO among its assessed peers capable of serving multiple regulated markets as of March 31, 2026.
Financially, Encube Ethicals has demonstrated strong growth. Revenue from operations surged to Rs 1,848.7 crore in FY26 from Rs 1,085.9 crore in FY24. Concurrently, net profit significantly increased to Rs 436.7 crore in FY26, up from Rs 156.1 crore in FY24. Regulated markets were a substantial contributor to its Global CDMO revenue, accounting for 61.02 per cent in FY26.
Key Advisors
JM Financial, Axis Capital, and Kotak Mahindra Capital Company have been appointed as the book-running lead managers for the IPO. MUFG Intime India will serve as the registrar to the issue. The shares are proposed to be listed on both the BSE and NSE stock exchanges.