The Encube Ethicals IPO could come this month. The company is planning an issue of about $317 million in India, as per a Bloomberg report. That is close to the ₹3,000 crore the company named in its DRHP. We could not read the full report, so the timing is unconfirmed until the company announces dates.
What did the DRHP say?
The Mumbai pharma company filed its DRHP with SEBI in August 2026. The DRHP is the draft paper a company files before an IPO. The issue is entirely an offer for sale (OFS), so the company gets no money from it.
| Detail | As per the DRHP |
|---|---|
| Issue size | Up to ₹3,000 crore |
| Structure | Entirely OFS |
| Sellers | Promoter Mehul Madhusudan Shah and Frontier Investment Holdings |
| Reservation | QIB up to 50%, NII at least 15%, retail at least 35% |
| Lead managers | JM Financial, Axis Capital, Kotak Mahindra Capital |
| Registrar | MUFG Intime India |
Kotak Neo reported that Shah would sell shares worth ₹2,000 crore. Frontier, backed by Quadria Capital, would sell ₹1,000 crore. The promoters held 80.63% before the issue.
What does Encube Ethicals do?
The company was set up in 1995. It runs two plants, in Goa and Indore. The Goa plant has approvals from 11 regulators, including the US FDA. Global customers made up 64% of FY26 business, as per Kotak Neo.
Encube makes creams, gels and patches, which are called topical and transdermal products. It sells to over 160 pharma companies in 50 countries. Its business has three parts: global generics, contract manufacturing for other firms, and branded medicines in India.
Revenue from operations was ₹1,848.7 crore in FY26. It was ₹1,085.9 crore in FY24. Net profit rose to ₹436.7 crore from ₹156.1 crore over the same two years.
What our data shows
This would be one of the larger pharma filings on our upcoming mainboard IPO page. No dates, price band or lot size have been announced yet, so there is no GMP to track.
Why does an OFS matter?
In an OFS, the money goes to the selling shareholders and not to the company. So the IPO will not fund new plants or repay debt. It lets the promoter and an early investor sell part of their stake to the public.
What happens next
If the report is right, the company would file its final offer papers, the RHP, and then announce the price band. Bidding would open a few days later. We will cover the dates as they come in our IPO news section.
