InvestorQ : Is it true that Macleods Pharma has put off its Planned IPO issue?
NISHA Nayak made post

Is it true that Macleods Pharma has put off its Planned IPO issue?

Neelam Naik answered.
3 weeks ago

Macleods Pharmaceuticals has put off its Rs5,000 crore IPO plan. It becomes the second pharma related company to put off IPO plans after PharmEasy. Macleods turned wary after observing the market conditions and decided to defer the decision. For now, it may raise funds through private placement and will explore the IPO option at a later date. Macleods also found a valuation mismatch post discussions with institutional investors. The IPO market in India has become very stingy on valuations in last few months.

The IPO of Macleods Pharma was an offer for sale of 6.05 crore shares to the public worth about Rs5,000 crore. Macleods was targeting an overall valuation of Rs50,000 crore or $6.2 billion and is not willing for valuations. Macleods is already a profitable and cash-rich company and may not require funds at this point of time. It is a zero debt company so it can afford to wait. This raises questions about other big pharma IPOs in the anvil like Emcure Pharma. Macleods is the 7th largest Indian pharma company based on domestic sales.

Macleods has a product portfolio comprising of anti-infectives, cardiovascular, anti-diabetic, dermatology and hormone treatment. It gets 51.7% of total branded generics revenues from Indian market. It also has a robust global presence across 170 countries including developed and emerging markets. Currently, Macleods is present across North America, Europe, Africa, Asia, Latin America and the CIS countries adjoining Russia. The bottom line is that IPO plans are off for now.