inventia healthcare limited - bombay stock …the securities and exchange board of india (issue of...
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DRAFT RED HERRING PROSPECTUS
Dated: September 20, 2018
Please read Section 32 of the Companies Act, 2013
(This Draft Red Herring Prospectus will be updated upon filing with the RoC)
100% Book Built Offer
INVENTIA HEALTHCARE LIMITED
Inventia Healthcare Limited (“our Company”) was originally incorporated as ‘Ankur Pharmaceuticals Private Limited’ under the Companies Act, 1956, pursuant to a certificate of incorporation dated September
27, 1985 issued by the Registrar of Companies, Maharashtra at Mumbai (“RoC”). The name of our Company was changed to ‘Themis Laboratories Private Limited’, pursuant to a fresh certificate of incorporation
issued by the RoC on April 5, 2002. Subsequently, the name of our Company was changed to ‘Inventia Healthcare Private Limited’, pursuant to a fresh certificate of incorporation issued by the RoC on March 16,
2009. Thereafter, our Company was converted into a public limited company pursuant to a special resolution passed in the extraordinary general meeting of the Shareholders of our Company held on June 22, 2018
and consequently the name of our Company was changed to its present name ‘Inventia Healthcare Limited’, pursuant to a fresh certificate of incorporation issued by the RoC on June 29, 2018. For more information
regarding changes in the name and registered office of our Company, see “History and Certain Corporate Matters” on page 131.
Corporate Identity Number: U24239MH1985PLC037597
Registered and Corporate Office: Unit 703 and 704, 7th floor, Hubtown Solaris, N. S. Phadke Marg, Andheri (East), Mumbai, 400 069 Contact Person: Rupa Desai, Company Secretary and Compliance Officer; Telephone: +91 22 6716 3000; Facsimile: +91 22 6716 3100; E-mail: [email protected] Website:
www.inventiahealthcare.com
PROMOTERS OF OUR COMPANY: JANAK SHAH, MAYA SHAH, ANKUR SHAH TRUST AND VISHAL SHAH TRUST INITIAL PUBLIC OFFERING OF UP TO [●] EQUITY SHARES OF FACE VALUE OF ̀ 10 EACH (“EQUITY SHARES”) OF OUR COMPANY FOR CASH AT A PRICE OF `[●] PER EQUITY SHARE, INCLUDING A PREMIUM OF `[●] PER EQUITY SHARE, (“OFFER PRICE”) AGGREGATING UP TO `[●] MILLION, COMPRISING OF A FRESH ISSUE OF UP TO [●] EQUITY SHARES AGGREGATING UP TO `1,250 MILLION BY OUR COMPANY (“FRESH ISSUE”) AND AN OFFER FOR SALE OF UP TO 360,000 EQUITY SHARES BY JANAK SHAH AND UP TO 360,000 EQUITY SHARES BY MAYA SHAH (COLLECTIVELY, THE “PROMOTER SELLING SHAREHOLDERS”) AND AN OFFER FOR SALE OF UP TO 2,444,000 EQUITY SHARES
BY NYLIM JACOB BALLAS INDIA FUND III, LLC (“INVESTOR SELLING SHAREHOLDER”) (COLLECTIVELY, THE “SELLING SHAREHOLDERS”) AND SUCH EQUITY SHARES
OFFERED BY THE SELLING SHAREHOLDERS (THE “OFFERED SHARES”) AGGREGATING UP TO `[●] MILLION (THE “OFFER FOR SALE” AND TOGETHER WITH THE FRESH ISSUE, THE “OFFER”). THE OFFER WILL CONSTITUTE [●]% OF OUR POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.
THE PRICE BAND AND THE MINIMUM BID LOT SIZE WILL BE DECIDED BY OUR COMPANY AND THE SELLING SHAREHOLDERS IN CONSULTATION WITH THE BRLMS,
AND WILL BE ADVERTISED IN ALL EDITIONS OF [●] (A WIDELY CIRCULATED ENGLISH NATIONAL DAILY NEWSPAPER), ALL EDITIONS OF [●] (A WIDELY CIRCULATED
HINDI NATIONAL DAILY NEWSPAPER) AND THE [●] EDITION OF [●] (A WIDELY CIRCULATED MARATHI NEWSPAPER, MARATHI BEING THE REGIONAL LANGUAGE OF
MAHARASHTRA, WHERE OUR REGISTERED OFFICE IS SITUATED), AT LEAST FIVE WORKING DAYS PRIOR TO THE BID/OFFER OPENING DATE IN ACCORDANCE WITH
THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2009, AS AMENDED (“SEBI ICDR
REGULATIONS”), AND SUCH ADVERTISEMENT SHALL BE MADE AVAILABLE TO BSE LIMITED (“BSE”) AND NATIONAL STOCK EXCHANGE OF INDIA LIMITED (“NSE”, AND
TOGETHER WITH BSE, THE “STOCK EXCHANGES”) FOR THE PURPOSES OF UPLOADING ON THEIR RESPECTIVE WEBSITES.
THE FACE VALUE OF THE EQUITY SHARES IS `10 EACH AND THE OFFER PRICE IS [●] TIMES THE FACE VALUE OF THE EQUITY SHARES In case of a revision to the Price Band, the Bid/Offer Period shall be extended for at least three additional Working Days after revision of the Price Band, subject to the Bid/Offer Period not exceeding a total of
10 Working Days. Any revision in the Price Band and the revised Bid/Offer Period, if applicable, shall be widely disseminated by notification to the Stock Exchanges, by issuing a press release, and also by
indicating the change on the websites of the BRLMs, and at the terminals of the members of the Syndicate and by intimation to other Designated Intermediaries.
In terms of Rule 19(2)(b)(i) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 41 of the SEBI ICDR Regulations, this is an Offer for at least 25% of the post-
Offer paid-up Equity Share capital of our Company. The Offer is being made through the Book Building Process, and in compliance with Regulation 26(1) of the SEBI ICDR Regulations, wherein not more
than 50% of the Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (“QIB Portion”), provided that our Company and the Selling Shareholders, in consultation with the
BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors, on a discretionary basis (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid
Bids being received from domestic Mutual Funds at or above the price at which allocation is made to Anchor Investors (“Anchor Investor Allocation Price”). In the event of under-subscription, or non-
allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion (excluding the Anchor Investor Portion) (“Net QIB Portion”). Further, 5% of the Net QIB Portion shall
be available for allocation on a proportionate basis to Mutual Funds only and the remainder of the Net QIB Portion, including any unsubscribed portion of the reservation for Mutual Funds, if any, shall be
available for allocation on a proportionate basis to all QIBs (other than Anchor Investors) including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price. Further, not less
than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors, in
accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Bidders (except Anchor Investors) shall mandatorily participate in this Offer only through the
Application Supported by Blocked Amount (“ASBA”) process and shall provide details of their ASBA Accounts. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the
ASBA process. For details, see “Offer Procedure” on page 343.
RISKS IN RELATION TO THE FIRST OFFER This being the first public issue of our Company, there has been no formal market for the Equity Shares. The face value of the Equity Shares is `10 each and the Floor Price and Cap Price are [●] times and [●] times of the face value of the Equity Shares, respectively. The Offer Price (as determined and justified by our Company and the Selling Shareholders, in consultation with the BRLMs, in accordance with the SEBI
ICDR Regulations, and as stated in “Basis for Offer Price” on page 89) should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed. No assurance can be given regarding
an active and/or sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing.
GENERAL RISKS Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in the Offer unless they can afford to take the risk of losing their investment. Investors are
advised to read the risk factors carefully before taking an investment decision in the Offer. For taking an investment decision, investors must rely on their own examination of the Company and the Offer,
including the risks involved. The Equity Shares have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”), nor does the SEBI guarantee the accuracy or adequacy of the
contents of this Draft Red Herring Prospectus. Specific attention of the investors is invited to “Risk Factors” on page 17.
OUR COMPANY’S AND SELLING SHAREHOLDERS’ ABSOLUTE RESPONSIBILITY Our Company, having made all reasonable inquiries, accepts responsibility for and confirms that this Draft Red Herring Prospectus contains all information with regard to our Company and the Offer, which is
material in the context of the Offer, that the information contained in this Draft Red Herring Prospectus is true and correct in all material aspects and is not misleading in any material respect, that the opinions
and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Draft Red Herring Prospectus as a whole or any of such information or the expression of any
such opinions or intentions, misleading in any material respect. Further, the Selling Shareholders accept responsibility for and confirm only those statements specifically made by the Selling Shareholders in this
Draft Red Herring Prospectus, to the extent of information specifically pertaining to the Selling Shareholders and their respective portion of the Offered Shares, and they also confirm that such statements are
true and correct in all material aspects and are not misleading in any material respect.
LISTING The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on the Stock Exchanges. Our Company has received in-principle approvals from BSE and NSE for listing of the Equity
Shares pursuant to their letters dated [●] and [●], respectively. For the purposes of this Offer, [●] is the Designated Stock Exchange. A signed copy of the Red Herring Prospectus and the Prospectus shall be
delivered for registration to the RoC in accordance with Section 26(4) and Section 32 of the Companies Act, 2013. For details of the material contracts and documents available for inspection from the date of
the Red Herring Prospectus up to the Bid/Offer Closing Date, see “Material Contracts and Documents for Inspection” on page 433.
BOOK RUNNING LEAD MANAGERS REGISTRAR TO THE OFFER
ICICI Securities Limited
ICICI Centre
H.T. Parekh Marg, Churchgate
Mumbai 400 020
Tel: +91 22 2288 2460
Fax: +91 22 2282 6580
E-mail: [email protected]
Investor grievance E-mail: [email protected]
Website: www.icicisecurities.com
Contact Person: Suyash Jain/ Rupesh Khant
SEBI Registration No.: INM000011179
Centrum Capital Limited
Centrum House, C.S.T. Road,
Vidyanagari Marg, Kalina,
Santacruz (East),
Mumbai 400 098
Tel: +91 22 42159000
Fax: +91 22 42159444
E-mail: [email protected]
Investor grievance E-mail: [email protected]
Website: www.centrum.co.in
Contact Person: Sugandha Kaushik
SEBI Registration No: INM000010445
Link Intime India Private Limited
C-101, 1st Floor, 247 Park,
Lal Bahadur Shastri Marg, Vikhroli (West),
Mumbai 400 083
Tel: +91 22 4918 6200
Fax: +91 22 4918 6195
E-mail: [email protected]
Investor grievance E-mail: [email protected]
Website: www.linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
BID/OFFER PERIOD BID/OFFER OPENS ON* [●] BID/OFFER CLOSES ON** [●]
* Our Company and the Selling Shareholders may, in consultation with the BRLMs, consider participation by Anchor Investors, in accordance with the SEBI ICDR Regulations. The Anchor Investor Bidding Date shall be one
Working Day prior to the Bid/Offer Opening Date. ** Our Company and the Selling Shareholders may, in consultation with the BRLMs, decide to close the Bid/Offer Period for QIBs one Working Day prior to the Bid/Offer Closing Date, in accordance with the SEBI ICDR Regulations.
mailto:[email protected]
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TABLE OF CONTENTS
SECTION I - GENERAL ..................................................................................................................................... 1
DEFINITIONS AND ABBREVIATIONS .................................................................................................. 1 CERTAIN CONVENTIONS, USE OF FINANCIAL INFORMATION AND MARKET DATA AND
CURRENCY OF PRESENTATION ........................................................................................................ 12 FORWARD-LOOKING STATEMENTS ................................................................................................ 15
SECTION II: RISK FACTORS ........................................................................................................................ 17
SECTION III – INTRODUCTION ................................................................................................................... 41
SUMMARY OF INDUSTRY .................................................................................................................... 41 SUMMARY OF BUSINESS ...................................................................................................................... 45 SUMMARY FINANCIAL INFORMATION ........................................................................................... 51 THE OFFER ............................................................................................................................................... 59 GENERAL INFORMATION ................................................................................................................... 61 CAPITAL STRUCTURE .......................................................................................................................... 69 OBJECTS OF THE OFFER ...................................................................................................................... 83 BASIS FOR OFFER PRICE ..................................................................................................................... 89 STATEMENT OF TAX BENEFITS ......................................................................................................... 92
SECTION IV: ABOUT THE COMPANY ....................................................................................................... 95
INDUSTRY OVERVIEW ......................................................................................................................... 95 OUR BUSINESS ....................................................................................................................................... 113 KEY REGULATIONS AND POLICIES................................................................................................ 124 HISTORY AND CERTAIN CORPORATE MATTERS ...................................................................... 131 OUR MANAGEMENT ............................................................................................................................ 138 OUR PROMOTERS AND PROMOTER GROUP................................................................................ 155 OUR GROUP COMPANIES .................................................................................................................. 159 RELATED PARTY TRANSACTIONS ................................................................................................. 160 DIVIDEND POLICY ............................................................................................................................... 161
SECTION V – FINANCIAL INFORMATION ............................................................................................. 162
FINANCIAL STATEMENTS ................................................................................................................. 162 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS ................................................................................................................ 280 FINANCIAL INDEBTEDNESS ............................................................................................................. 312
SECTION VI – LEGAL AND OTHER INFORMATION ........................................................................... 314
OUTSTANDING LITIGATION AND OTHER MATERIAL DEVELOPMENTS ........................... 314
GOVERNMENT AND OTHER APPROVALS .................................................................................... 317
OTHER REGULATORY AND STATUTORY DISCLOSURES ........................................................ 321
SECTION VII – OFFER RELATED INFORMATION ............................................................................... 335
OFFER STRUCTURE ............................................................................................................................. 335 TERMS OF THE OFFER........................................................................................................................ 338 OFFER PROCEDURE ............................................................................................................................ 343 RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES ................................... 388
SECTION VIII – MAIN PROVISIONS OF ARTICLES OF ASSOCIATION .......................................... 390
SECTION IX – OTHER INFORMATION .................................................................................................... 433
MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION ............................................. 433
DECLARATION .............................................................................................................................................. 435
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SECTION I - GENERAL
DEFINITIONS AND ABBREVIATIONS
This Draft Red Herring Prospectus uses certain definitions and abbreviations which, unless the context otherwise
indicates or implies, shall have the meanings ascribed to such terms herein, and references to any legislation, act,
rule, regulation, circular, guideline, policy, notification or clarification will include any amendments or re-
enactments thereto, from time to time. In case of any inconsistency between the definitions given below and the
definitions contained in the General Information Document (as defined below), the definitions given in this section
shall prevail.
Notwithstanding the foregoing, terms in the sections “Main Provisions of the Articles of Association”, “Statement
of Tax Benefits”, “Objects of the Offer”, “Industry Overview”, “Our Business”, “Risk Factors”, “Regulations
and Policies”, “Financial Information”, “Outstanding Litigation and Other Material Developments” and “Part
B” of “Offer Procedure”, will have the meaning ascribed to such terms in those respective sections.
Unless the context otherwise indicates, all references to “our Company”, “the Company”, “the Issuer”, “we”,
“us” or “our” are references to Inventia Healthcare Limited, a company incorporated in India under the
Companies Act, 1956, with its Registered Office situated at Unit 703 and 704, 7 th floor, Hubtown Solaris, N S
Phadke Marg, Andheri (East), Mumbai, Maharashtra, India, 400 069.
Company and Selling Shareholders related terms
Term Description
Ambernath Facility The manufacturing facility of our Company located at Plot No. F1-F-1/1 and F-75/1,
Additional Ambernath M.I.D.C, Ambernath (East), Thane – 421 506.
AoA/Articles of
Association/ Articles
The articles of association of our Company, as amended from time to time.
Audit Committee The audit committee of our Company, constituted in accordance with Regulation 18 of the
SEBI Listing Regulations and Section 177 of the Companies Act, 2013, as described in “Our
Management” on page 138.
Auditors/Statutory Auditors The statutory auditor of our Company, being S R B C & CO LLP, Chartered Accountants.
Board/Board of Directors The board of directors of our Company, or a duly constituted committee thereof.
Corporate Social
Responsibility Committee
The corporate social responsibility committee of our Company, constituted in accordance
with Section 135 of the Companies Act, 2013 and the Companies (Corporate Social
Responsibility Policy) Rules, 2014, the details of which are provided in “Our Management”
on page 138.
Director(s) The director(s) on our Board.
Equity Shares The equity shares of our Company of face value of `10 each.
Independent Director(s) The independent director(s) of our Company, in terms of Section 2(47) and Section 149(6)
of the Companies Act, 2013.
Key Management
Personnel/ Key Managerial
Personnel/ KMP
Key management personnel of our Company in terms of Regulation 2(1)(s) of the SEBI
ICDR Regulations, together with the key managerial personnel of our Company in terms of
Section 2(51) of the Companies Act, 2013 and as described in “Our Management” on page
138.
Materiality Policy The policy adopted by our Board on September 14, 2018, for identification of Group
Companies, material outstanding litigations and material creditors, pursuant to the
requirements of the SEBI ICDR Regulations and for the purposes of the disclosure in this
Draft Red Herring Prospectus.
MoA/Memorandum
of Association
The memorandum of association of our Company, as amended from time to time.
Nomination and
Remuneration
Committee/NRC
The nomination and remuneration committee of our Company, constituted in accordance
with Regulation 19 of the SEBI Listing Regulations and Section 178 of the Companies Act,
2013, the details of which are provided in “Our Management” on page 138.
NYLIM JB / Investor
Selling Shareholder
NYLIM Jacob Ballas India Fund III, LLC
Promoters Promoters of our Company namely, Janak Shah, Maya Shah, Ankur Shah Trust and Vishal
Shah Trust. For further details, see “Our Promoters and Promoter Group” on page 155.
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Term Description
Promoter Group Persons and entities constituting the promoter group in accordance with Regulation 2(1)(zb)
of the SEBI ICDR Regulations. For further details, see “Our Promoters and Promoter
Group” on page 155.
Promoter Selling
Shareholders
Janak Shah and Maya Shah
Registered and Corporate
Office
Registered and Corporate office of our Company located at Unit 703 and 704, 7th floor,
Hubtown Solaris, N S Phadke Marg, Andheri (East), Mumbai, Maharashtra, India, 400 069.
Registrar of
Companies/RoC
The Registrar of Companies, Maharashtra located at 100, Everest, Marine Drive, Mumbai-
400 002.
Restated Financial
Statements
The restated statement of assets and liabilities of our Company as at March 31, 2018, 2017,
2016, 2015 and 2014 and the restated statement of profit and loss, the restated statement
of changes in equity and the restated statement of cash flows for each of the years ended
March 31, 2018, 2017, 2016, 2015 and 2014 and the related notes, schedules and
annexures thereto which comprises of a) the restated financial information as at and for
the year ended March 31, 2018, prepared as per recognition and measurement principles
under Indian Accounting Standards notified under Section 133 of the Companies Act,
2013 read with the Companies (Indian Accounting Standards) Rules, 2015 as amended
and which may become applicable to our Company for the financial year ending March
31, 2019 and as has been notified till the date of adoption of the restated financial
statements by the Board of Directors of our Company, requirements of SEBI Circular
SEBI/HO/CFD/DIL/CIR/P/2016/47 dated March 31, 2016 (“SEBI Circular”) and
Guidance Note on reports in company prospectuses issued by ICAI (“ICAI Guidance
Note”); and b) the restated financial information as at and for the years ended March 31,
2017, 2016, 2015 and 2014, prepared on proforma basis in accordance with the same
accounting policies as applied for year ended March 31, 2018, requirements of SEBI
Circular and ICAI Guidance note, included in “Financial Information” on page 162.
The Restated Financial Statements have been compiled by our Company from the audited
financial statements of our Company as at and for the year ended March 31, 2018,2017,
2016, 2015 and 2014 prepared under Indian GAAP after making (a) GAAP adjustments
between Indian GAAP and the recognition and measurement principles of Ind AS; and (b)
exceptions applied and exemptions elected by our Company, in respect of accounting
policy choices availed as per Ind AS 101.
Restated Net Worth
(RONW)
The aggregate of equity share capital and other equity
Restated Net Asset Value
per Equity Share
Restated Net Worth at the end of the year / total number of Equity Shares outstanding at
the end of the year adjusted for approved bonus issued after the Financial Year ended
March 31, 2018
Return on Net Worth Restated Profit attributable to equity shareholders / Restated Net Worth at the end of the
year
Selling Shareholders Janak Shah, Maya Shah and NYILM JB
Shareholders Shareholders holding Equity Shares, from time to time.
Stakeholders’ Relationship
Committee
The stakeholder’s relationship committee of our Company, constituted in accordance with
Regulation 20 of the SEBI Listing Regulations and Section 178 of the Companies Act, 2013,
the details of which are provided in “Our Management” on page 138
Offer Related Terms
Term Description
Acknowledgment Slip The slip or document issued by the Designated Intermediary(ies) to a Bidder as proof of
registration of the Bid.
Allotted/Allotment/Allot Unless the context otherwise requires, the allotment of Equity Shares to successful Bidders
pursuant to the Fresh Issue and transfer of the Offered Shares by the Selling Shareholders to
the successful Bidders, pursuant to the Offer.
Allotment Advice The note or advice or intimation of Allotment, sent to each successful Bidder who has been
or would be Allotted the Equity Shares after approval of the Basis of Allotment by the
Designated Stock Exchange.
Allottee A successful Bidder to whom the Equity Shares are Allotted.
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Term Description
Anchor Investor A QIB, who applies under the Anchor Investor Portion in accordance with the
requirements specified in the SEBI ICDR Regulations and the Red Herring Prospectus.
For further details, see “Offer Procedure” on page 343.
Anchor Investor Allocation
Price
The price at which Equity Shares will be allocated to the Anchor Investors in terms of the
Red Herring Prospectus and the Prospectus, which will be decided by our Company and
the Selling Shareholders, in consultation with the BRLMs.
Anchor Investor Bidding
Date
The date one Working Day prior to the Bid/Offer Opening Date on which Bids by Anchor
Investors shall be submitted, prior to and after which the BRLMs will not accept any Bids
in the Anchor Investor Portion, and allocation to the Anchor Investors shall be completed.
Anchor Investor Offer Price The final price at which the Equity Shares will be Allotted to Anchor Investors in terms
of the Red Herring Prospectus and the Prospectus, which will be a price equal to or higher
than the Offer Price but not higher than the Cap Price. The Anchor Investor Offer Price
will be decided by our Company and the Selling Shareholders, in consultation with the
BRLMs.
Anchor Investor Portion Up to 60% of the QIB Portion, which may be allocated by our Company and the Selling
Shareholders, in consultation with the BRLMs, to Anchor Investors, on a discretionary
basis, in accordance with SEBI ICDR Regulations. One-third of the Anchor Investor
Portion is reserved for domestic Mutual Funds, subject to valid Bids being received from
domestic Mutual Funds at or above the Anchor Investor Allocation Price.
Application Supported by
Blocked Amount/ASBA
The application (whether physical or electronic) by a Bidder (other than Anchor Investors)
to make a Bid authorising the relevant SCSB to block the Bid Amount in the relevant
ASBA Account.
ASBA Account A bank account maintained with an SCSB and specified in the ASBA Form which will be
blocked by such SCSB to the extent of the appropriate Bid Amount in relation to a Bid by
an ASBA Bidder (other than a Bid by an Anchor Investor).
ASBA Bidder Prospective investors (other than Anchor Investors) in the Offer who intend to submit the
Bid through the ASBA process.
ASBA Form An application form, whether physical or electronic, used by ASBA Bidders which will
be considered as the application for Allotment in terms of the Red Herring Prospectus and
the Prospectus.
Banker(s) to the Offer Escrow Bank(s), Refund Bank (s) and Public Offer Account Bank(s)
Basis of Allotment The basis on which the Equity Shares will be Allotted, as described in “Offer Procedure –
Allotment Procedure and Basis of Allotment” on page 377.
Bid
An indication to make an offer during the Bid/ Offer Period by an ASBA Bidder (other than
an Anchor Investor), or on the Anchor Investor Bidding Date by an Anchor Investor,
pursuant to submission of a Bid cum Application Form, to purchase our Equity Shares at a
price within the Price Band, including all revisions and modifications thereto, to the extent
permissible under the SEBI ICDR Regulations, in terms of the Red Herring Prospectus and
the Bid cum Application Form. The term ‘Bidding’ shall be construed accordingly.
Bid Amount The highest value of the optional Bids as indicated in the Bid cum Application Form and
payable by the Anchor Investor or as blocked in the ASBA Account of the ASBA Bidder,
as the case may be, upon submission of the Bid in the Offer, as applicable.
Bid cum Application Form The form in terms of which the Bidder shall make a Bid, including an ASBA Form, and
which shall be considered as the application for the Allotment pursuant to the terms of the
Red Herring Prospectus and the Prospectus.
Bid Lot [●] Equity Shares.
Bid/ Offer Closing Date Except in relation to Anchor Investors, the date after which the Designated Intermediaries
shall not accept any Bids for the Offer, which shall be published in all editions of [●] (a
widely circulated English national daily newspaper), all editions of [●] (a widely circulated
Hindi national daily newspaper) and [●] edition of [●] (a widely circulated Marathi
newspaper, Marathi being the regional language of Maharashtra, where our Registered
Office is located) and in case of any revisions, the extended Bid/ Offer Closing Date shall
also be notified on the websites and terminals of the members of the Syndicate, as required
under the SEBI ICDR Regulations. Our Company and the Selling Shareholders, in
consultation with the BRLMs, may decide to close the Bid/ Offer Period for QIBs one
Working Day prior to the Bid/ Offer Closing Date, subject to the conditions imposed by the
SEBI ICDR Regulations.
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Term Description
Bid/ Offer Opening Date Except in relation to Anchor Investors, the date on which the Designated Intermediaries shall
start accepting Bids for the Offer, which shall be published in all editions of [●] (a widely
circulated English national daily newspaper), all editions of [●] (a widely circulated Hindi
national daily newspaper) and [●] edition of [●] (a widely circulated Marathi newspaper,
Marathi being the regional language of Maharashtra where our Registered Office is
located).
Bid/ Offer Period Except in relation to Anchor Investors, the period between the Bid/ Offer Opening Date and
the Bid/ Offer Closing Date, inclusive of both days during which prospective Bidders
(excluding Anchor Investors) can submit their Bids, including any revisions thereof in
accordance with the SEBI ICDR Regulations and the terms of the Red Herring Prospectus.
Bidder/Applicant Any prospective investor who makes a Bid pursuant to the terms of the Red Herring
Prospectus and the Bid cum Application Form and unless otherwise stated or implied,
includes an Anchor Investor.
Bidding Centres Centres at which the Designated Intermediaries shall accept the Bid cum Application Forms,
being the Designated Branch for SCSBs, Specified Locations for the Syndicate, Broker
Centres for Registered Brokers, Designated RTA Locations for CRTAs and Designated CDP
Locations for CDPs.
Book Building Process The book building process as described in Part A of Schedule XI of the SEBI ICDR
Regulations, in terms of which the Offer Price shall be determined.
Book Running Lead
Managers / BRLMs
ICICI Securities Limited and Centrum Capital Limited are the book running lead managers
to the Offer.
Broker Centres Broker centres notified by the Stock Exchanges, where Bidders (other than Anchor Investors)
can submit the Bid cum Application Forms to a Registered Broker. The details of such
Broker Centres, along with the names and contact details of the Registered Brokers are
available on the respective websites of the Stock Exchanges.
CAN/Confirmation of
Allocation Note
Notice or intimation of allocation of the Equity Shares sent to Anchor Investors, who have
been allocated the Equity Shares, after the Anchor Investor Bidding Date.
Cap Price Higher end of the Price Band, subject to any revisions thereof, i.e. `[●] above which the
Offer Price and Anchor Investor Offer Price will not be finalised and above which no Bids
will be accepted.
Centrum Centrum Capital Limited
Circular on Streamlining of
Public Issues
Circular no. CIR/CFD/POLICYCELL/11/2015 dated November 10, 2015 issued by SEBI.
Client ID Client identification number maintained with one of the depositories in relation to the demat
account.
Collecting Depository
Participants/CDPs
A depository participant, as defined under the Depositories Act, 1996 and registered under
Section 12(1A) of the SEBI Act and who is eligible to procure Bids at the Designated CDP
Locations in terms of the Circular on Streamlining of Public Issues.
Collecting Registrar and
Share Transfer
Agents/CRTAs
Registrar and share transfer agents registered with SEBI and eligible to procure Bids at the
Designated RTA Locations in terms of the Circular on Streamlining of Public Issues.
Cut-off Price Offer Price as finalised by our Company and the Selling Shareholders, in consultation with
the BRLMs, which may be any price within the Price Band.
Demographic Details Details of the Bidders including the Bidders’ address, names of the Bidders’ father/husband,
investor status, occupation and bank account details.
Designated Branches Such branches of the SCSBs which shall collect the Bid cum Application Forms used by
Bidders (other than Anchor Investors), a list of which is available at the website of the SEBI
(http://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognised=yes) and updated
from time to time and at such other website as prescribed by SEBI from time to time.
Designated CDP Locations Such centres of the Collecting Depository Participants where Bidders (except Anchor
Investors) can submit the Bid cum Application Forms. The details of such Designated CDP
Locations, along with the names and contact details of the CDPs are available on the
respective websites of the Stock Exchanges and updated from time to time.
Designated Date The date on which funds are transferred from the Escrow Account and instructions are given
to the SCSBs to unblock the ASBA Accounts and transfer the amounts blocked by the
SCSBs, from the ASBA Accounts, to the Public Offer Account or the Refund Account, as
applicable, in terms of the Red Herring Prospectus and the aforesaid transfer and instructions
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Term Description
shall be issued only after finalisation of Basis of Allotment in consultation with the
Designated Stock Exchange.
Designated Intermediaries Collectively, the members of the Syndicate, sub-syndicate/agents, SCSBs, Registered
Brokers, CDPs and CRTAs, who are authorised to collect Bid cum Application Forms
from the Bidders (other than Anchor Investors), in relation to the Offer.
Designated RTA Locations Such centres of the CRTAs where Bidders (except Anchor Investors) can submit the Bid
cum Application Forms. The details of such Designated RTA Locations, along with the
names and contact details of the CRTAs are available on the respective websites of the Stock
Exchanges (www.nseindia.com and www.bseindia.com) and updated from time to time.
Designated Stock Exchange [●]
Draft Red Herring
Prospectus/ DRHP
This draft red herring prospectus dated September 20, 2018, issued in accordance with the
SEBI ICDR Regulations, which does not contain complete particulars of the price at which
our Equity Shares will be Allotted and the size of the Offer, including any addenda or
corrigenda thereto.
Eligible NRI A non-resident Indian investing in the Offer on non-repatriation basis under Schedule IV of
FEMA 20, resident in a jurisdiction outside India where it is not unlawful to make an offer
or invitation under the Offer and in relation to whom the Red Herring Prospectus constitutes
an invitation to subscribe to the Equity Shares.
Escrow Account(s) Account(s) opened with Escrow Bank and in whose favour the Anchor Investors will transfer
money through direct credit or NACH or NEFT or RTGS in respect of the Bid Amount when
submitting a Bid.
Escrow Agreement Agreement to be entered into among our Company, the Selling Shareholders, the Registrar
to the Offer, the BRLMs and the Banker(s) to the Offer for collection of the Bid Amounts
and where applicable remitting refunds, if any, on the terms and conditions thereof.
Escrow Bank A bank, which is a clearing member and registered with SEBI as a banker to an issue and
with whom the Escrow Account will be opened.
First Bidder The Bidder whose name appears first in the Bid cum Application Form or the Revision
Form and in case of joint Bids, whose name appears as the first holder of the beneficiary
account held in joint names.
Floor Price The lower end of the Price Band, subject to any revisions thereof, at or above which the Offer
Price and the Anchor Investor Offer Price will be finalised and below which no Bids will be
accepted, and which shall not be less than the face value of the Equity Shares.
Fresh Issue The issue of up to [●] Equity Shares aggregating up to ` 1,250 million by our Company for
subscription pursuant to the terms of the Red Herring Prospectus.
General Information
Document
The General Information Document for investing in public issues prepared and issued in
accordance with the circular (CIR/CFD/DIL/12/2013) dated October 23, 2013, notified by
SEBI and updated pursuant to the circular (CIR/CFD/POLICYCELL/11/2015) dated
November 10, 2015, the circular (CIR/CFD/DIL/1/2016) dated January 1, 2016 and
(SEBI/HO/CFD/DIL/CIR/P/2016/26) dated January 21, 2016, notified by SEBI and
included in “Offer Procedure” on page 343.
Gross Proceeds The gross proceeds of the Fresh Issue that will be available to our Company.
ISEC ICICI Securities Limited
Maximum RIIs Allottees The maximum number of RIIs who can be allotted the minimum Bid Lot. This is computed
by dividing the total number of Equity Shares available for Allotment to RIIs by the
minimum Bid Lot.
Minimum Promoters’
Contribution
Aggregate of 20% of the fully diluted post- Offer equity share capital of our Company that
are eligible to form part of the minimum promoter’s contribution, as required under the
provisions of the SEBI ICDR Regulations, held by our Promoters that shall be locked-in
for a period of three years from the date of Allotment.
Mutual Fund Portion 5% of the Net QIB Portion or [●] Equity Shares, which shall be available for allocation to
Mutual Funds only, on a proportionate basis, subject to valid Bids being received at or above
the Offer Price.
Net QIB Portion The portion of the QIB Portion less the number of Equity Shares Allotted to the Anchor
Investors.
Net Proceeds Gross Proceeds less Offer expenses to the extent applicable to the Fresh Issue
Non-Institutional
Investors/NIB
All Bidders, including Category III FPIs that are not QIBs (including Anchor Investors) or
Retail Individual Investors, who have Bid for Equity Shares for an amount of more than
`200,000 (but not including NRIs other than Eligible NRIs).
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Term Description
Non-Institutional Portion The portion of the Offer, being not less than 15% of the Offer or [●] Equity Shares, available
for allocation on a proportionate basis to Non-Institutional Investors, subject to valid Bids
being received at or above the Offer Price.
Offer The initial public offer of up to [●] Equity Shares of face value of `10 each for cash at a price
of `[●] each aggregating up to `[●] million, consisting of:
(i) Fresh Issue of up to [●] Equity Shares aggregating up to ` 1,250 million; Offer for Sale of up to 3,164,000 Equity Shares aggregating up to ̀ [●] million by the Selling
Shareholders.
Offer Agreement The agreement dated September 20, 2018 entered into among our Company, the Selling
Shareholders and the BRLMs, pursuant to which certain arrangements are agreed to in
relation to the Offer.
Offer Price The final price at which Equity Shares will be Allotted to the successful Bidders (except
Anchor Investors), as determined in accordance with the Book Building Process and
determined by our Company and the Selling Shareholders, in consultation with the BRLMs,
in terms of the Red Herring Prospectus on the Pricing Date.
Offer Proceeds The Gross Proceeds of this Offer based on the total number of Equity Shares Allotted under
this Offer and the Offer Price.
Offer for Sale The offer for sale of up to 3,164,000 Equity Shares comprising up to 360,000 Equity Shares
by Janak Shah, up to 360,000 Equity Shares by Maya Shah and up to 2,444,000 Equity
Shares by NYLIM JB, aggregating up to ` [●] million, in terms of the Red Herring
Prospectus.
Offered Shares Up to 3,164,000 Equity Shares aggregating up to `[●] million offered by the Selling
Shareholders in the Offer for Sale.
Price Band Price band of the Floor Price of ̀ [●] and a Cap Price of ̀ [●], including any revisions thereof.
The Price Band and the minimum Bid Lot size for the Offer will be decided by our Company
and the Selling Shareholders, in consultation with the BRLMs, and shall be advertised in
all editions of [●] (a widely circulated English national daily newspaper), all editions of [●]
(a widely circulated Hindi national daily newspaper) and the [●] edition of [●] (a widely
circulated Marathi newspaper, Marathi being the regional language of Maharashtra where
our Registered Office is located) at least five Working Days prior to the Bid/ Offer Opening
Date, with the relevant financial ratios calculated at the Floor Price and at the Cap Price and
shall be made available to the Stock Exchanges for the purpose of uploading on their
websites.
Pricing Date The date on which our Company and the Selling Shareholders, in consultation with the
BRLMs, shall finalise the Offer Price.
Prospectus The Prospectus to be filed with the RoC in relation to this Offer, on or after the Pricing Date
in accordance with the provisions of Section 26 of the Companies Act, 2013 and the SEBI
ICDR Regulations, containing the Offer Price, the size of the Offer and certain other
information, including any addenda or corrigenda thereto.
Public Offer Account The account(s) to be opened with the Banker(s) to the Offer under Section 40(3) of the
Companies Act, 2013 to receive monies from the Escrow Account(s) and the ASBA
Accounts on the Designated Date.
Public Offer Account Bank The banks with whom the Public Offer Account is opened for collection of Bid Amounts
from Escrow Account and ASBA Account on the Designated Date.
QIB Portion The portion of the Offer, being not more than 50% of the Offer or [●] Equity Shares to be
Allotted to QIBs on a proportionate basis, including the Anchor Investor Portion (in which
allocation shall be on a discretionary basis, as determined by our Company and the Selling
Shareholders, in consultation with the BRLMs), subject to valid Bids being received at or
above the Offer Price.
Qualified Institutional
Buyers/ QIBs
A qualified institutional buyer as defined under Regulation 2(1)(zd) of the SEBI ICDR
Regulations.
Red Herring
Prospectus/RHP
The red herring prospectus to be issued in accordance with Section 32 of the Companies Act,
2013 and the SEBI ICDR Regulations, which will not have complete particulars of the price
at which the Equity Shares shall be Allotted and which shall be filed with the RoC at least
three Working Days before the Bid/ Offer Opening Date and will become the Prospectus
after filing with the RoC after the Pricing Date, including any addenda or corrigenda
thereto.
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Term Description
Refund Account(s) Account(s) opened with the Refund Bank from which refunds, if any, of the whole or part of
the Bid Amount shall be made to Anchor Investors.
Refund Bank(s) The bank(s) with whom the Refund Account(s) will be opened.
Registered Brokers Stock brokers registered with SEBI and the stock exchanges having nationwide terminals,
other than the members of the Syndicate and eligible to procure Bids in terms of circular
number CIR/CFD/14/2012 dated October 14, 2012, issued by SEBI.
Registrar Agreement The agreement dated September 18, 2018, entered into among our Company, the Selling
Shareholders and the Registrar to the Offer in relation to the responsibilities and obligations
of the Registrar to the Offer pertaining to the Offer.
Registrar to the Offer Link Intime India Private Limited.
Retail Portion The portion of the Offer, being not less than 35% of the Offer or [●] Equity Shares, available
for allocation to Retail Individual Investors, which shall not be less than the minimum Bid
lot, subject to availability in the Retail Portion.
Retail Individual
Investors/RIIs
Bidders whose Bid Amount for Equity Shares in the Offer is not more than `200,000 in any
of the bidding options in the Offer (including HUFs applying through their karta and Eligible
NRIs and does not include NRIs other than Eligible NRIs).
Revision Form The form used by the Bidders to modify the quantity of Equity Shares or the Bid Amount in
any of their Bid cum Application Forms or any previous Revision Form(s), as applicable.
QIBs and Non-Institutional Investors are not permitted to withdraw their Bid(s) or lower the
size of their Bid(s) (in terms of quantity of Equity Shares or the Bid Amount) at any stage.
Retail Individual Bidders can revise their Bids during the Bid/ Offer Period and withdraw
their Bids until Bid/Offer Closing Date.
Self Certified Syndicate
Banks/SCSBs
The banks registered with the SEBI which offer the facility of ASBA and the list of which is
available on the website of the SEBI
(http://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognised=yes) and updated
from time to time and at such other websites as may be prescribed by SEBI from time to
time.
Share Escrow Agreement The agreement to be entered into among the Selling Shareholders, our Company and a
share escrow agent in connection with the transfer of the Offered Shares and credit of such
Equity Shares to the demat account of the Allottees.
Specified Locations Bidding centres where the Syndicate shall accept Bid cum Application Forms, a list of which
is included in the Bid cum Application Form.
Stock Exchanges Collectively, BSE Limited and National Stock Exchange of India Limited.
Syndicate Agreement The agreement to be entered into among the members of the Syndicate, our Company and
the Selling Shareholders in relation to the collection of Bid cum Application Forms by the
Syndicate Members (other than Bids directly submitted to the SCSBs under the ASBA
process and Bids submitted to the Registered Brokers at the Broker Centres).
Syndicate Members Intermediaries registered with the SEBI and permitted to carry out activities as an
underwriter, as may be appointed by our Company, in consultation with the BRLMs.
Syndicate or members of the
Syndicate
Collectively, the BRLMs and the Syndicate Members.
Systemically Important Non-
Banking Financial Company
Systemically important non-banking financial company as defined under Regulation
2(1)(zla) of the SEBI ICDR Regulations, as a non-banking financial company registered
with the Reserve Bank of India and having a net-worth of more than five thousand million
rupees as per the last audited financial statements.
Underwriters The underwriters to be appointed in terms of the Underwriting Agreement.
Underwriting Agreement The agreement to be entered into among our Company, the Selling Shareholders and the
Underwriters on or after the Pricing Date but prior to filing of the Prospectus.
Working Day(s) Any day, other than the second and fourth Saturdays of each calendar month, Sundays and
public holidays, on which commercial banks in Mumbai are open for business, provided
however, with reference to (a) announcement of Price Band; and (b) Bid/ Offer Period,
“Working Day” shall mean any day, excluding all Saturdays, Sundays and public holidays,
on which commercial banks in Mumbai are open for business; and (c) period between the
Bid/ Offer Closing Date and the listing of the Equity Shares on the Stock Exchanges,
“Working Day” shall mean all trading days of the Stock Exchanges, excluding Sundays
and bank holidays, as per the SEBI Circular SEBI/HO/CFD/DIL/CIR/P/2016/26 dated
January 21, 2016.
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Industry Related Terms
Term Description
APAC Asia Pacific to include Australia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia,
New Zealand, Philippines, Serbia, Singapore, Taiwan, Thailand and Vietnam
API Active Pharmaceutical Ingredient
BLA Biologics License Application
CAGR CAGR (Compound annual growth rate) represents annualised average year- over-year
growth rate over a specific period of time which is calculated using the formula:
{[V(t_n)/V(t_0)]^(1/(t_n-t_o)]} – 1]
V(t_o): Start Value, V(t_n): Finish Value, t_n: Start Date, t_o: Finish Date and t_n-t_0:
number of years
CDMO Contract Development and Manufacturing Organization
CIS Commonwealth of Independent States which includes Belarus
CMO Contract Manufacturing Organizations
CNS Central Nervous System
CVC Cardiovascular
DACA Drug Administration and Controlling Authority
DC Rules Drugs and Cosmetics Rules, 1945
DC Act Drugs and Cosmetics Act, 1940
DPCO Drugs (Price Control) Order, 2013
ER Extended Release
EU5 European Union which includes France, Germany Italy, Spain and UK
FDA Food and Drug Administration
FDI Foreign Direct Investment
FSSA Food Safety and Standards Act, 2006
FSSAI Food Safety and Standards Authority of India
GCP Good Clinical Practices
GMP Good Manufacturing Practice
ICH International Conference on Harmonization
IR Immediate release
KFDA Korea Food and Drug Authority
LATAM
Latin America which includes Argentina, Brazil, Central America, Chile, Colombia,
Dominican Republic, Ecuador, Mexico, Peru, Uruguay, Venezuela
M&A Mergers and Acquisitions
MEA
Middle East and North Africa which includes Algeria, Egypt, French West Africa, Jordan,
Kuwait, Morocco, Saudi Arabia, South Africa, Tunisia and UAE
MNC Multinational Companies
NDA New Drug Application
NDPS Act Narcotic Drugs and Psychotropic Substances Act, 1985
Non-IR Non-Immediate release
OSDF Oral Solid Dosage Formulation
Pharmexcil Pharmaceuticals Export Promotion Council of India
R&D Research and Development
ROE
Rest of Europe which includes Austria, Belgium, Bosnia, Bulgaria, Croatia, Czech Republic,
Estonia, Finland, Greece, Hungary, Ireland, Latvia, Lebanon, Lithuania, Luxembourg,
Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Sweden, Switzerland
and Turkey
SAARC South Asian Association for Regional Cooperation
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9
Term Description
Tab Tablet
US United States
UT Union Territory
Conventional and General Terms and Abbreviations
Term Description
AIF(s) Alternative Investment Funds, as defined in, and registered under the SEBI AIF Regulations
Air Act Air (Prevention and Control of Pollution) Act, 1981
BSE BSE Limited
Category III FPIs FPIs registered as category III FPIs under the SEBI FPI Regulations, which shall include all
other FPIs not eligible under category I and II foreign portfolio investors, such as
endowments, charitable societies, charitable trusts, foundations, corporate bodies, trusts,
individuals and family offices
CCI Competition Commission of India
CDSL Central Depository Services (India) Limited
CEO Chief Executive Officer
CFO Chief Financial Officer
CGST Act, 2017 Central Goods and Services Tax Act, 2017
CIN Corporate Identity Number
CLRA Contract Labour (Regulation and Abolition) Act, 1970
Companies Act Companies Act, 1956 (without reference to the provisions thereof that have ceased to have
effect upon notification of the Notified Sections) and the Companies Act, 2013, read with
the rules, regulations, clarifications and modifications thereunder
Companies Act, 1956 Companies Act, 1956 (without reference to the provisions thereof that have ceased to have
effect upon notification of the Notified Sections) and the rules, regulations, modifications
and clarifications made thereunder as the context requires
Companies Act, 2013 Companies Act, 2013, to the extent in force pursuant to the notification of the Notified
Sections, read with the rules, regulations, notifications, clarifications and modifications
thereunder
Competition Act Competition Act, 2002
CPC Code of Civil Procedure, 1908
CSR Corporate Social Responsibility
CRISIL Credit Rating Information Services of India Limited
Demat Dematerialised
Depositories Act The Depositories Act, 1996
Depository A depository registered with the SEBI under the Securities and Exchange Board of India
(Depositories and Participants) Regulations, 1996
DIPP Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, GoI
DP ID Depository Participant’s Identity number
EBITDA Earnings before interest, tax, depreciation, amortization and other income. For further
details please see “Summary Financial Information – Reconciliation of Restated EBITDA
to restated Profit attributable to equity shareholders for the period” on page 58 of this
Draft Red Herring Prospectus
Environment Act Environment (Protection) Act, 1986
EPF Act Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
EPS Earnings per share
ESI Act Employees’ State Insurance Act, 1948
FCNR Account Foreign Currency Non-Resident (Bank) account established in accordance with the FEMA
FDI Foreign direct investment
FDI Policy The consolidated FDI Policy, effective from August 28, 2017, issued by the Department
of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of
India, and any modifications thereto or substitutions thereof, issued from time to time
FEMA The Foreign Exchange Management Act, 1999 read with rules, regulations, notifications,
circulars and directions thereunder.
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10
Term Description
FEMA 20 Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside
India) Regulations, 2017
Finance Act Finance Act, 2018
Financial Year/Fiscal/Fiscal
Year
The period of 12 months commencing on April 1 of the immediately preceding calendar
year and ending on March 31 of that particular calendar year
FPIs Foreign Portfolio Investors, as defined and registered with SEBI under SEBI FPI
Regulations
FVCI Foreign venture capital investors as defined and registered with SEBI under the SEBI
FVCI Regulations.
GAAR General Anti-Avoidance Rules
GDP Gross Domestic Product
GoI/Central Government/
Government
The Government of India
Gross Margin Net revenue from operations (comprising of revenue from operations relating to sale of
products net of excise duty on sale of goods) less total cost (comprising of cost of material
consumed, purchase of traded goods, decrease / (increase) in inventories of finished goods,
traded goods and work in progress). For further details, see “Summary Financial
Information- Computation of Gross Margin” on page 57.
GST Goods and Services Tax
HUF(s) Hindu Undivided Family(ies)
Hazardous Waste Rules Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016
ICAI Institute of Chartered Accountants of India
ICAI Guidance Note Guidance Note on reports in company prospectuses issued by ICAI
ICDS Income Computation and Disclosure Standards
IFRS International Financial Reporting Standards
IFSC Indian Financial System Code
IGST Act, 2017 Integrated Goods and Services Tax Act, 2017
Income Tax Act Income Tax Act, 1961
Ind AS Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013 read
with Rule 3 of Companies (Indian Accounting Standard) Rules, 2015 (as amended), and
which may become applicable to our Company for the financial year ending March 31, 2019
and as has been notified till the date of adoption of these Restated Financial Statements by
the Board of Directors of the Company
Indian GAAP/ IGAAP/
Previous GAAP
In accordance with the accounting principles generally accepted in India, including the
Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 read with
Rule 7 of the Companies (Accounts) Rules, 2014 and Companies (Accounting Standards
Amendment) Rules, 2016 (as amended)
INR/Rupee/`/Rs. Indian Rupee, the official currency of the Republic of India
IPO Initial public offering
IT Information Technology
LLP Limited Liability Partnership
MCA Ministry of Corporate Affairs, GoI
Mn Million
Mutual Funds Mutual funds registered with the SEBI under the Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996
N.A. Not applicable
NCDs Non-convertible debentures
Notified Sections Sections of the Companies Act, 2013 that have been notified by the MCA and are currently
in effect
NR/Non-resident A person resident outside India, as defined under FEMA and includes NRIs, FVCIs and
FPIs
NRI Non-Resident Indian as defined under the FEMA 20
NSDL National Securities Depository Limited
NSE National Stock Exchange of India Limited
P/E Ratio Price/Earnings Ratio
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Term Description
PAN Permanent account number
PAT Profit after tax
Patents Act The Patents Act, 1970
RBI Reserve Bank of India
Regulation S Regulation S under the U.S. Securities Act
SCRA Securities Contract (Regulation) Act, 1956
SCRR Securities Contracts (Regulation) Rules, 1957
SE Act Shops and establishment legislations as enacted by various state governments
SEBI Securities and Exchange Board of India constituted under the SEBI Act
SEBI Act Securities and Exchange Board of India Act, 1992
SEBI AIF Regulations Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012
SEBI Circular SEBI Circular SEBI/HO/CFD/DIL/CIR/P/2016/47 dated March 31, 2016 on clarification
regarding applicability of Indian Accounting Standards to disclosures in offer documents
under the SEBI ICDR Regulations
SEBI FPI Regulations Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014
SEBI FVCI Regulations Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations,
2000
SEBI ICDR Regulations Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009
SEBI Listing Regulations Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015
SGST Act, 2017 State Goods and Services Tax Act, 2017, as enacted by various state governments
STT Securities Transaction Tax
Takeover Regulations Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011
Trademarks Act Trademarks Act, 1999
U.S. GAAP Generally Accepted Accounting Principles in the United State of America
U.S. Securities Act U.S. Securities Act of 1933, as amended
US$/USD/US Dollar United States Dollar, the official currency of the United States of America
USA/U.S./US/United States United States of America, its territories and possessions, any state of the United States of
America and the District of Columbia
VAT Value Added Tax
VCFs Venture capital funds as defined in and registered with the SEBI under the Securities and
Exchange Board of India (Venture Capital Fund) Regulations, 1996 or the SEBI AIF
Regulations, as the case may be
Water Act The Water (Prevention and Control of Pollution) Act, 1974
WHO-GMP World Health Organisation - Good Manufacturing Practice
The words and expressions used but not defined in this Draft Red Herring Prospectus will have the same meaning
as assigned to such terms under the Companies Act, the SEBI Act, the SEBI ICDR Regulations, the SCRA, the
Depositories Act and the rules and regulations made thereunder.
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CERTAIN CONVENTIONS, USE OF FINANCIAL INFORMATION AND MARKET DATA AND
CURRENCY OF PRESENTATION
Certain Conventions
All references in this Draft Red Herring Prospectus to “India” are to the Republic of India.
Unless stated otherwise, all references to page numbers in this Draft Red Herring Prospectus are to the page
numbers of this Draft Red Herring Prospectus.
Financial Data
Unless the context requires otherwise, the financial information in this Draft Red Herring Prospectus is derived
from our Restated Financial Statements. Our Company’s financial year commences on April 1 of the immediately
preceding calendar year and ends on March 31 of that particular calendar year, so all references to a particular
financial year or fiscal are to the 12-month period commencing on April 1 of the immediately preceding calendar
year and ending on March 31 of that particular calendar year. Unless the context requires otherwise, all references
to a year in this Draft Red Herring Prospectus are to a calendar year and references to a Fiscal/Fiscal Year are to
the year ended on March 31, of that calendar year.
Our Company has prepared its financial statements until March 31, 2018 in accordance with the requirements of
Indian GAAP. For the purpose of this Draft Red Herring Prospectus, our Company has elected to present the
restated financial information for the last five Fiscals as per requirement of SEBI Circular and ICAI guidance note
instead of Indian GAAP and which comprises of a) the restated financial information as at and for the year ended
March 31, 2018, prepared as per recognition and measurement principles under Indian Accounting Standards
notified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards)
Rules, 2015 as amended and which may become applicable to our Company for the financial year ending March
31, 2019 and as has been notified till the date of adoption of the Restated Financial Statements by the Board of
Directors of our Company with the transition date of April 1, 2017, requirements of the SEBI Circular and ICAI
Guidance Note; and b) the restated financial information as at and for the years ended March 31, 2017, 2016, 2015
and 2014, prepared on proforma basis in accordance with the same accounting policies as applied for year ended
March 31, 2018, requirements of SEBI Circular and ICAI Guidance note. For further details, see “Risk Factors -
The Company will prepare its first annual set of financial statements in accordance with Ind AS from the
accounting year ending March 31, 2019. As a result, our Restated Financial Statements included in this Draft
Red Herring Prospectus may differ from such financials once prepared” on page 21.
Ind AS which differs in some material respects from IFRS and U.S. GAAP. Accordingly, the degree to which our
Restated Financial Statements, as included in this Draft Red Herring Prospectus, will provide meaningful
information is entirely dependent on the reader’s level of familiarity with the Companies Act, 2013, Ind AS and
the SEBI ICDR Regulations. Any reliance by persons not familiar with Indian accounting practices on the
financial disclosures presented in this Draft Red Herring Prospectus should accordingly be limited. We have not
attempted to quantify the impact of IFRS or U.S. GAAP on the financial data included in this Draft Red Herring
Prospectus, nor do we provide a reconciliation of our financial statements to those under U.S. GAAP or IFRS.
Furthermore, no attempt has been made to identify disclosures, presentation or classification of differences that
would affect the manner in which transactions and events are reflected in our financial statements or the respective
notes thereunder. We urge you to consult your own advisors regarding such differences and their impact on our
financial data. See “Risk Factors - Significant differences exist between Ind AS and other accounting principles,
such as Indian GAAP, IFRS and U.S. GAAP, which may be material to investors’ assessment of our financial
condition.” on page 33.
EBITDA, Net Worth, Net Asset value per share, compounded annual growth rate (CAGR), Gross Margin, Return
on Net Worth (“Non-GAAP measures’’) presented in this Draft Red Herring Prospectus are supplemental
measures of our performance and liquidity that are not required by, or presented in accordance with, Ind AS, IFRS
or US GAAP. Furthermore, these Non-GAAP measures, are not a measurement of our financial performance or
liquidity under Indian GAAP, IFRS or US GAAP and should not be considered as an alternative to net profit/loss,
revenue from operations or any other performance measures derived in accordance with Ind AS, IFRS or US
GAAP or as an alternative to cash flow from operations or as a measure of our liquidity. In addition, Non-GAAP
measures used are not a standardised term, hence a direct comparison of Non-GAAP measures between companies
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13
may not be possible. Other companies may calculate Non-GAAP measures differently from us, limiting its
usefulness as a comparative measure.
Unless the context otherwise indicates, any percentage amounts, as set forth in “Risk Factors”, “Our Business”
and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” on pages 17, 113
and 280, respectively, and elsewhere in this Draft Red Herring Prospectus have been calculated on the basis of
the Restated Financial Statements of our Company.
Certain figures contained in this Draft Red Herring Prospectus, including financial information, have been subject
to rounding adjustments. All decimals have been rounded off to two decimal points. In certain instances, (i) the
sum or percentage change of such numbers may not conform exactly to the total figure given; and (ii) the sum of
the numbers in a column or row in certain tables may not conform exactly to the total figure given for that column
or row. Further, any figures sourced from third-party industry sources may be rounded off to other than two
decimal points to conform to their respective sources.
Industry and Market Data
Unless stated otherwise, industry and market data used in this Draft Red Herring Prospectus has been obtained or
derived report titled “Value Added Generics Pharmaceuticals Market” dated September 17, 2018 that we have
commissioned from Frost & Sullivan (I) Private Limited” (“F&S Report”).
Industry publications generally state that the information contained in such publications has been obtained from
sources generally believed to be reliable, but their accuracy, completeness and underlying assumptions are not
guaranteed, and their reliability cannot be assured and accordingly, investment decisions should not be based on
such information. Although we believe that the industry and market data used in this Draft Red Herring Prospectus
is reliable, it has not been independently verified by us, the Selling Shareholders, the BRLMs or any of our or
their respective affiliates or advisors and none of these parties make any representation as to the accuracy of this
information. The data used in these sources may have been reclassified by us for the purposes of presentation.
Data from these sources may also not be comparable.
The extent to which the market and industry data presented in this Draft Red Herring Prospectus is meaningful
depends upon the reader’s familiarity with and understanding of the methodologies used in compiling such data.
There are no standard data gathering methodologies in the industry in which the business of our Company is
conducted, and methodologies and assumptions may vary widely among different market and industry sources.
Such data involves risks, uncertainties and numerous assumptions and is subject to change based on various
factors. For further details, see “Risk Factors –We have commissioned industry reports from certain agencies,
which have been used for industry related data in this Draft Red Herring Prospectus and such data has not been
independently verified by us” on page 33. Accordingly, investment decisions should not be based solely on such
information.
In accordance with the SEBI ICDR Regulations, the section “Basis for Offer Price” on page 89 includes
information relating to our peer group companies. Such information has been derived from publicly available
sources, and neither we nor the BRLMs have independently verified such information.
Currency and Units of Presentation
All references to:
• “Rupees” or “₹” or “INR” or “Rs.” are to Indian Rupee, the official currency of the Republic of India; and
• “USD” or “US$” are to United States Dollar, the official currency of the United States.
Our Company has presented certain numerical information in this Draft Red Herring Prospectus in “million” units.
One million represents 1,000,000 and one billion represents 1,000,000,000. All the numbers in this Draft Red
Herring Prospectus are in million or in whole numbers where the numbers have been too small to present in
million, as appropriate.
Exchange Rates
This Draft Red Herring Prospectus may contain conversions of certain other currency amounts into Indian Rupees
that have been presented solely to comply with the requirements of the SEBI ICDR Regulations. These
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conversions should not be construed as a representation that such currency amounts could have been, or can be
converted into Indian Rupees, at any particular rate, or at all.
The exchange rates of certain currencies used in this Draft Red Herring Prospectus into Indian Rupees for the
periods indicated are provided below: (in `)
Currency Exchange rate as on
March 31, 2018 March 31, 2017 March 31, 2016 March 31, 2015 March 31, 2014
1 USD 65.04 64.84 66.33 62.59 60.10 Source: RBI reference rate; except otherwise specified.
In the event that March 31 of any respective year is a public holiday, the previous calendar day not being a public holiday has been considered
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FORWARD-LOOKING STATEMENTS
This Draft Red Herring Prospectus contains certain “forward-looking statements”. These forward-looking
statements include statements which can generally be identified by words or phrases such as “aim”, “anticipate”,
“believe”, “expect”, “estimate”, “intend”, “likely to”, “objective”, “plan”, “propose”, “project”, “will”, “will
continue”, “seek to”, “will pursue”, or other words or phrases of similar import. Similarly, statements that describe
our Company’s strategies, objectives, plans or goals are also forward-looking statements.
These forward-looking statements, whether made by us or a third-party, are based on our current plans, estimates,
presumptions and expectations and actual results may differ materially from those suggested by such forward-
looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions about us
that could cause actual results to differ materially from those contemplated by the relevant forward-looking
statement.
This may be due to risks or uncertainties or assumptions associated with the expectations with respect to, but not
limited to, regulatory changes pertaining to the industry in which our Company operates and our ability to respond
to them, our ability to successfully implement our strategy, our growth and expansion, technological changes, our
exposure to market risks, general economic and political conditions in India which have an impact on our business
activities or investments, the monetary and fiscal policies of India, inflation, deflation, unanticipated turbulence
in interest rates, foreign exchange rates, equity prices or other rates or prices, the performance of the financial
markets in India and globally, changes in domestic laws, regulations and taxes, changes in competition in the
industry and incidence of any natural calamities and/or acts of violence. Important factors that could cause actual
results to differ materially from our Company’s expectations include, but are not limited to, the following:
• any disruption in production at, or shutdown of, our manufacturing facility;
• success of product development process and our ability to conceptualise new products;
• our ability to maintain relationship with our partners;
• timely availability of raw materials or an increase in our raw material costs, or other input costs;
• any quality control problems at our manufacturing facility;
• grant of product approvals from respective regulatory authorities;
• ability to comply with regulations prescribed by government and regulatory agencies and ability to obtain, renew and maintain statutory and regulatory permits;
• regulatory restrictions on pricing our products;
• our ability to protect our intellectual property rights, particularly our patented as well as proprietary information;
• fluctuations in exchange rates; and
• increase in competition in the value added OSDF market.
For a further discussion of factors that could cause our actual results to differ from our expectations, see “Risk
Factors”, “Our Business” and “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” on pages 17, 113 and 280, respectively. By their nature, certain market risk disclosures are only
estimates and could be materially different from what actually occurs in the future. As a result, actual future gains
or losses could materially differ from those that have been estimated and are not a guarantee of future performance.
Although we believe that the assumptions on which such forward-looking statements are based are reasonable,
we cannot assure investors that the expectations reflected in these forward-looking statements will prove to be
correct. Given these uncertainties, investors are cautioned not to place undue reliance on such forward-looking
statements and not to regard such statements as a guarantee of future performance.
Forward-looking statements reflect the current views of our Company as on the date of this Draft Red Herring
Prospectus and are not a guarantee of future performance. These statements are based on the management’s belief
and assumptions, which in turn are based on currently available information. Although we believe the assumptions
upon which these forward-looking statements are based are reasonable, any of these assumptions as well as
statements based on them could prove to be inaccurate. Neither our Company, the Selling Shareholders, our
Promoters, our Directors, the BRLMs, nor any of their respective affiliates have any obligation to update or
otherwise revise any statements reflecting circumstances arising after the date hereof or to reflect the occurrence
of underlying events, even if the underlying assumptions do not come to fruition.
In accordance with regulatory requirements, our Company will ensure that investors in India are informed of
material developments from the date of registration of the Red Herring Prospectus with the RoC until receipt of
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final listing and trading approvals by the Stock Exchanges for this Offer. The Selling Shareholders shall ensure
that they will keep our Company and the BRLMs informed of all developments pertaining to Offered Shares and
themselves, that may be material from the context of the Offer.
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SECTION II: RISK FACTORS
An investment in the equity shares involves a high degree of risk. You should carefully consider all of the
information in this Draft Red Herring Prospectus, including the risks and uncertainties described below, before
making an investment in our Equity Shares. Bidders should pay particular attention to the fact that we are
governed in India by a legal and regulatory environment which in some material respects may be different from
that which prevails in other countries. In making an investment decision, Bidders must rely on their own
examination of our Company and the terms of the Offer, including the risks involved. If any or some combination
of the following risks occur or if any of the risks that are currently not known or deemed to be not relevant or
material now, occur, our business, prospects, financial condition, cash flows and results of operations could
suffer, the trading price of the Equity Shares could decline, and you may lose all or part of your investment. To
obtain a more detailed understanding of our business and operations, please read this section in conjunction with
the sections titled “Our Business”, Industry Overview” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” on pages 113, 95 and 280, respectively.
We have described the risks and uncertainties that our management believes are material, but these risks and
uncertainties may not be the only ones we face. Additional risks and uncertainties, including those we are not
aware of, or deem immaterial or irrelevant, may also result in decreased revenues, increased expenses or other
events that could result in a decline in the value of the Equity Shares. Unless specified or quantified in the relevant
risk factors below, we are not in a position to quantify the financial or other implication of any of the risks
described in this section. You should not invest in this Offer unless you are prepared to accept the risk of losing
all or part of your investment, and you should consult your tax, financial and legal advisors about the particular
consequences to you of an investment in the Equity Shares.
This Draft Red Herring Prospectus also contains forward-looking statements that involve risks and uncertainties.
Our actual results could differ materially from those anticipated in these forward-looking statements as a result
of certain factors, including the considerations described below and elsewhere in this Draft Red Herring
Prospectus.
Unless otherwise indicated or context requires otherwise, all financial information included herein are based on
our Restated Financial Statements. Please see “Financial Information” on page 162.
Internal Risk Factors
Risks Relating to our Business
1. Any disruption in production at, or shutdown of, our manufacturing facility could adversely affect our business, results of operations and financial condition.
We have a modern accredited manufacturing facility which is located in Ambernath, Maharashtra and we
currently manufacture all our products at the Ambernath Facility. Our business is dependent upon our ability
to manage the Ambernath Facility, which is subject to various operating risks, including those beyond our
control, such as the breakdown and failure of equipment or industrial accidents, severe weather conditions
and natural disasters.
Although we have not experienced any instances of disruptions at the Ambernath Facility in the past, we
cannot assure you that we will not face any disruptions in our operations in the future. In the event that there
are any disruptions at our Ambernath Facility due to natural or man-made disasters, workforce disruptions,
regulatory approval delays, fire, failure of machinery, lack of access to assured supply of electrical power and
water at reasonable costs or any significant social, political or economic disturbances, our ability to
manufacture our products may be adversely affected.
Disruptions in our manufacturing activities could delay production or require us to shut down our
manufacturing facility. Any contravention of or non-compliance with the terms of various regulatory
approvals applicable to our manufacturing facility may also require us to cease, or limit, production until such
non-compliance is remedied to the satisfaction of relevant regulatory authorities. Except one incident of
labour unrest in Thane, we have not in the recent past experienced any strikes or employee or labor unrest at
our manufacturing facility, we cannot assure you that we will not experience work disruptions in the future
resulting from any dispute with our employees or other problems associated with our employees and the labor
involved in our manufacturing facility. Occurrence of any of the above-mentioned events may hinder our
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regular operating activities and lead to disruptions in our operations, which could adversely affect our
business, prospects, financial condition, cash flows and results of operations.
2. The success of product development process is dependent on various steps carried out in the process of product development, which may or may not be in control of the Company. Any failure to achieve
monetisation of our new products may adversely impact, our business, operating results and future
prospects.
The process of development of our products is dependent on various steps. New product development and
launches are critical components to the growth and sustenance of our business, and involves several risks
including development uncertainties, increased competition, lower than anticipated price realizations, delays
in market launch and marketing failure. To successfully develop new products, we commit substantial efforts,
expenditures and other resources to R&D.
Our revenue expenditure directly related to research and development was ̀ 231.78 million, ` 226.42 million, ` 172.10 million, ` 169.66 million and ` 151.75 million and our capital expenditure directly related to research and development was ` 116.98 million, ` 34.58 million, ` 80.39 million, ` 8.37 million and ` 2.87 million for the years ended March 31, 2018, 2017, 2016, 2015 and 2014 respectively. For further details see
“Summary Financial Information – Summary of expenditure directly related to research and development”
on page 56. At any point in time due to