Eris Lifesciences gets SEBI nod for IPO

Ahmadabad based pharmaceutical firm Eris Lifesciences Pvt. Ltd has bagged an approval from Securities and Exchange Board of India (SEBI) for an initial public offering.

The company had filed its draft red herring prospectus (DRHP)on 8 February which is a first document submitted by a company (issuer) as part of a public offering of securities with the Securities and Exchange Board of India (Sebi).

The capital markets regulator issued final observations on the IPO proposal of the Ahmedabad-based pharmaceutical company on 28 April, the SEBI website showed. Eris became the 12th company to receive regulatory nod this calendar year.

The IPO comprises 28.87 million shares through an offer for sale, representing a 21% stake dilution on a post-offer basis. The issue size is estimated at around Rs2,000 crore, valuing the company at Rs9,500-10,000 crore.

Private equity firm ChrysCapital will sell all its 22.34 million shares from its 16.25 per cent stake while founder Amit Bakshi who holds 39.97% will sell 0.5%.

The Eris IPO comes at a time when markets have shown a strong appetite for pharma and healthcare firms.

Eris develops, manufactures and sells branded pharmaceutical products in chronic and acute categories in select therapeutic areas such as cardiovascular, anti-diabetics, vitamins, gastroenterology and anti-infectives. Its focus has been on developing products linked to lifestyle-related disorders.