MUMBAI, 15 FEBRUARY, 2022 (GPN): 

The DRHP Link: https://investmentbank.kotak.com/downloads/macleods-pharmaceuticals-limited-DRHP.pdf 

Key pointers of the IPO as per DRHP:

1)      The Issue – Macleods Pharmaceuticals Limited, one of the leading, vertically integrated, global pharmaceuticals companies in India, has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”). The IPO consists of an Offer for Sale of up to 60.48 million shares (the “Offer for Sale”), by the selling shareholders from the Promoter and Promoter Group.

2)      About the Company: Established in 1989, Macleods is the 7th largest company in the Indian Pharmaceutical Market (IPM, Source: IQVIA Dataset) for the six months ended September 30, 2021, based on Domestic Sales.

3)      Company’s Business: Macleods is engaged in developing, manufacturing, and marketing a wide range of formulations across several major therapeutic areas including anti-infectives, cardiovascular, anti-diabetic, dermatology, and hormone treatment.

4)      Track Record: Macleods has a track record of exhibiting industry-beating growth. Its Domestic Sales grew faster than the IPM at a CAGR of 15.3% from Fiscal 2011 to Fiscal 2021, compared to 10.8% growth in Domestic Sales of the IPM in the same period (Source: IQVIA Dataset)

5)      Capital Efficiency: The Company is wholly-owned by its Promoter and Promoter Group, and has grown organically since inception – through internal accruals, and without raising any external funding from private equity players.

6)      India Business: The Company’s domestic business comprises branded generics, and represented 51.73% of its total revenue from operations in Fiscal 2021, which was the 3rd highest proportion of domestic business among nine other key pharmaceutical companies in India.

7)      Sales and Distribution: Macleods is present across regions in India, through its sales team that comprised more than 4,900 medical representatives in India as at September 30, 2021. The Company has deep presence in the IPM with its Domestic Sales from non-metro cities representing 80.0% of its total Domestic Sales in Fiscal 2021, higher than 70.0% as recorded for the IPM (Source: IQVIA Report).

8)      Global Footprint: The Company has an extensive global presence in more than 170 countries across developed and emerging markets such as North America, Europe, Africa, Asia, South America, and the Commonwealth of Independent States. Revenue from operations outside India grew at a CAGR of 21.51% from Fiscal 2019 to Fiscal 2021 and represented 48.27% of revenues from operations in Fiscal 2021.

9)      WHO Certification: Globally, the Company strives to provide effective and accessible therapies with an extensive portfolio of anti-TB products, and has the highest number of WHO pre-qualified products globally with 65 registrations, and the highest number of WHO pre-qualified anti-TB product registrations with 32 registrations, as at December 31, 2021 (Source: IQVIA Report).

10)   Profitability and Return Ratios: The Company’s EBITDA and PAT margins has shown continuous expansion from Fiscal 2019 to Fiscal 2021. EBITDA Margin has increased from 22.84% in Fiscal 2019 to 24.98% in Fiscal 2020, and 29.12% in Fiscal 2021. PAT Margin has increased from 20.31% in Fiscal 2019 to 21.17% in Fiscal 2020, and 22.65% in Fiscal 2021. Macleods also exhibits high Return on Capital Employed, which stood at 66.05% in Fiscal 2021.

Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, Edelweiss Financial Services Limited, ICICI Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited are the Book Running Lead Managers to the IPO.