Symbiotec Pharmalab plans IPO to boost specialty pharma market

Mumbai: Symbiotec Pharmalab, a global leader in manufacturing corticosteroid and hormone active pharmaceutical ingredients (APIs), is planning an initial public offering (IPO) in the next 12 months at a targeted valuation of about $1 billion, said people familiar with the matter.

The Indore-based company has appointed Nomura, JM Financial, and Motilal Oswal as lead managers for the proposed IPO, which aims to raise ₹2,000-2,500 crore, and give a partial exit to existing private equity investors, the people said.

Motilal Oswal Private Equity (MOPE) and healthcare-focused PE firm InvAscent collectively hold about 72% stake in Symbiotec. MOPE, via its India Excellence Fund-III, owns 29%, and InvAscent, through Rosewood Investments, holds 42.67% as of March 31, 2024. The remaining 28% stake is held by the promoter Satwani family.

The planned public issue underscores rising interest in speciality pharma firms. In 2023, another API-focused firm, Concord Biotech, raised ₹1,551 crore through an IPO. Backed by late investor Rakesh Jhunjhunwala, Concord currently has a market capitalisation of ₹18,528 crore, with its stock closing at ₹1,780.75 apiece on the BSE on Tuesday-well above its issue price of ₹741.

Founded in 2002 by Anil Satwani, Symbiotec specialises in research, development, and manufacturing of corticosteroids and hormone APIs at facilities in Rau and Pithampur SEZ, Madhya Pradesh. The company is one of the largest independent firms in its category globally and has built a robust backward-integrated platform for steroid and hormone manufacturing.

Symbiotec has also ventured into formulations, currently developing a portfolio of injectable products through its unit, Knovea Pharmaceuticals, which is setting up a dedicated factory in Madhya Pradesh to cater to regulated markets. Another group unit, Symbiotec Zenfold is building a fermentation facility for green nutraceuticals and pharmaceutical precursors.

In FY25, Symbiotec reported a revenue of ₹800 crore and EBITDA of ₹250 crore, people said. During FY24, steroid APIs contributed 68% of revenue with hormones comprising the remainder. The company exports to more than 30 countries, including the US, Europe, and key Asian markets.