Medicap Healthcare Ltd Eyes Rs 240 Crore Through IPO for Expansion

Medicap Healthcare Ltd has submitted draft papers to the Securities and Exchange Board of India (SEBI) to garner Rs 240 crore via an initial public offering (IPO). The IPO, entirely a fresh equity issue, omits an offer for sale (OFS) segment, the draft red herring prospectus reveals.

The company is targeting a Rs 48 crore raise in a pre-IPO placement, which would correspondingly slash the fresh issue's magnitude. The IPO proceeds are earmarked for purchasing machinery for its manufacturing unit, debt settlement for KASR Healthcare, a subsidiary, and other corporate needs.

Situated in Vadodara, Medicap Healthcare produces critical packaging for the pharmaceutical industry. The IPO marks the firm's plans to upscale capacity and fortify its financial structure. Aryaman Financial Services is the lead manager for the public issue.

(With inputs from agencies.)