Curis Lifesciences IPO Overview
Sanand (Gujarat) pharma manufacturer raising ₹27.52 cr fresh issue of 21.50L shares. Price: ₹120-128. Lot: 2,000 shares (₹2.56L min). Funds for plant upgrade, storage facility, working capital, loan repayment, product registrations. Listing: NSE SME Nov 14. GMP: ₹0. Lead: Finaax Capital. 95 employees. Competes with Sun Pharma, Cipla, Laurus Labs.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | SME |
| IPO Open Date | 7 November 2025 (Friday) |
| IPO Close Date | 11 November 2025 (Tuesday) |
| Anchor Investor Bidding | 6 November 2025 (Thursday) |
| Allotment Date | 12 November 2025 (Wednesday) – Expected |
| Credit to Demat | 13 November 2025 (Thursday) – Expected |
| Refund Initiation | 13 November 2025 (Thursday) – Expected |
| Listing Date | 14 November 2025 (Friday) – Tentative |
| Price Band | ₹120 – ₹128 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,000 shares |
| Min Investment (Retail) | ₹2,56,000 (2 lots / 2,000 shares at upper band) |
| HNI Investment | ₹3,84,000 (3 lots / 3,000 shares) minimum |
| Issue Size | ₹27.52 crore total |
| Fresh Issue | ₹27.52 crore (100% fresh issue) |
| Offer for Sale (OFS) | NIL |
| Total Shares Offered | 21,50,000 equity shares |
| Listing | NSE SME (Emerge Platform) |
| Post-Issue Market Cap | ₹75+ crore (at upper price band) |
| Anchor Book Size | ₹7.81 crore raised from anchor investors |
Issue Break-up
| Category | Allocation | Shares |
| Anchor Portion | 28.37% | 6,10,000 shares (₹7.81 cr raised) |
| QIB (Net of Anchor) | 18.98% | 4,08,000 shares |
| NII (Non-Institutional Investors) | 14.33% | 3,08,000 shares |
| Retail Individual Investors | 33.30% | 7,16,000 shares |
| Market Maker | 5% | As per SEBI regulations |
Objects of the Issue (Fund Utilization)
Fresh Issue Proceeds (₹27.52 crore) will be used for:
- Capital Expenditure towards Upgradation/Improvement of Existing Manufacturing Facilities – ₹2.44 crore
- Modernization of production lines
- Installation of advanced machinery for quality and efficiency
- Compliance with evolving pharmaceutical standards
- Capital Expenditure towards Construction of Storage Facility – ₹3.62 crore
- Building additional warehousing capacity for raw materials and finished goods
- Temperature-controlled storage for sensitive pharmaceutical products
- Pre-payment/Repayment of Outstanding Secured Loans – ₹1.86 crore
- Debt reduction and deleveraging
- Reduce interest burden and improve financial flexibility
- Product Registrations in Other Countries – ₹2.69 crore
- International market entry through regulatory approvals
- Export expansion into new geographies beyond Yemen and Kenya
- Funding Working Capital Requirements – ₹11.25 crore (largest allocation – 40.9%)
- Raw material procurement and inventory management
- Receivables financing and operational expenses
- General Corporate Purposes – Balance amount for strategic initiatives
Strategic Focus:
- Scale manufacturing capacity and improve operational efficiency
- Expand international footprint through product registrations
- Strengthen balance sheet through debt repayment
- Address working capital intensity typical of pharmaceutical contract manufacturing
Note: This is a 100% fresh issue with no OFS. All proceeds go to the company for growth.
Lead Managers & Registrar
Book Running Lead Manager (BRLM):
- Finaax Capital Advisors Private Limited
Registrar:
- MUFG Intime India Private Limited (Link Intime India Private Limited)
- Address: C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli West, Mumbai – 400 083
- Phone: +91-22-4918 6270
- Email: [email protected]
- Website: https://linkintime.co.in / https://in.mpms.mufg.com/Initial_Offer/public-issues.html
Promoters & Management
Key Promoters:
- Mr. Dharmesh Dashrathbhai Patel (51 years) – Chairman & Managing Director
- B.Pharm from Saurashtra University
- 15+ years of experience in pharmaceutical industry
- Founding member overseeing financial and administrative functions
- Previously associated with Loreto Pharmaceuticals, Macline Pharmaceuticals, Biocare Formulations
- Mr. Piyush Gordhanbhai Antala (41 years) – Whole-Time Director
- B.Pharm from Rajiv Gandhi University of Health Sciences, Karnataka
- 15+ years of experience
- Founding member managing manufacturing operations
- Previously worked with Lincoln Pharmaceuticals, Biocare Formulations, Macline Pharmaceuticals
- Mr. Siddhant Jayantibhai Pawasia – Promoter
- Mr. Jaimik Mansukhbhai Patel (39 years) – Whole-Time Director
- B.Pharm from Rajiv Gandhi University + M.Sc. in Pharmacology from University of Hertfordshire, UK
- Founding member with rich pharmaceutical product development experience
- Formerly partner at Medheal Pharmaceutical
Company History:
- Originally formed as M/s. Loreto Pharmaceuticals (partnership firm) in 2010
- Engaged in trading and marketing of pharmaceutical products (2010-2016)
- Incorporated as Curis Lifesciences Private Limited on March 23, 2016
- Converted to public limited company on August 9, 2024
- Name changed to Curis Lifesciences Limited effective May 6, 2024
Company Contact:
- Registered Office: PF-23, GIDC Sanand – II, Industrial Estate, Ahmedabad, Sanand, Gujarat – 382110
- Phone: +91 99045 22543
- Email: [email protected] / [email protected]
- Website: www.curisls.com
COMPANY OVERVIEW
Establishment & Background:
- Originally established as partnership firm M/s. Loreto Pharmaceuticals in 2010
- Incorporated as private limited company on March 23, 2016
- Converted to public limited company on August 9, 2024
- Industry: Pharmaceutical Manufacturing – Contract & Loan License Manufacturing
- Headquarters: Sanand GIDC II, Ahmedabad, Gujarat
- 15 years of journey from pharmaceutical trading (2010-2016) to full-scale manufacturing (2017-present)
Business Model:
- Pharmaceutical contract manufacturer specializing in diverse range of formulations
- Operates through three primary business models:
- Loan License Manufacturing – Manufacturing under client’s licenses using client-provided raw materials and formulations; company acts as pure job-work partner for domestic clients
- Contract Manufacturing – Company procures raw materials, manufactures under client brands, supplies to merchant exporters (international) and domestic suppliers
- Direct Export / Own Brand Manufacturing – Manufactures and exports products under own brands (currently active in Yemen and Kenya)
- Product Portfolio: Tablets, capsules, oral liquids, external preparations (creams, gels, ointments), sterile ophthalmic ointments
- WHO-GMP Accredited facility ensuring international quality standards
Market Position:
- Serves over 100 corporate clients for contract and loan license manufacturing
- 2 direct export clients for own brand products in Yemen and Kenya
- Positioned as reliable contract manufacturing partner in India’s fragmented pharmaceutical sector
- India is world’s 3rd largest pharmaceutical producer by volume, 14th by value
- Indian pharma industry expected to grow 9-11% annually (ICRA estimate)
- Indian pharma market reached USD 49.78 billion in FY23 (5% YoY growth)
Operations:
- Single WHO-GMP accredited manufacturing facility at Sanand GIDC II, Ahmedabad, Gujarat
- Two manufacturing licenses:
- Form 25 (G/25/2225) – General drugs covering 745 approved products
- Form 28 (G/28/1632) – Schedule C, C(1), and X drugs (vaccines, sera, sterile formulations, psychotropics) covering 198 approved products
- Total: 943 approved products providing therapeutic breadth
- Annual Installed Capacity:
- 138 crore tablets
- 15.75 crore capsules
- 10.80 lakh liters (1,080 kiloliters) of oral liquids/syrups
- 270 tons of external preparations
- 45 tons of sterile ophthalmic ointments
- 95 permanent employees as of July 31, 2025
- Key clients include: J.B. Chemicals & Pharmaceuticals, Troikaa Pharmaceuticals, Venus International, Centurion Healthcare, Makers Laboratories
- Revenue breakdown: Contract and loan license manufacturing contribute majority; direct exports less than 1% of revenue
Company Strengths
- Diversified Business Model – Three Revenue Streams:
- Loan license manufacturing (pure job-work, minimal inventory risk)
- Contract manufacturing (merchant exporters + domestic suppliers)
- Direct export under own brands (Yemen, Kenya)
- Reduces dependency on single revenue channel
- Flexibility to serve domestic and international markets
- Ability to pivot based on margin opportunities
- WHO-GMP Accreditation & Quality Certifications:
- WHO-GMP certified facility ensuring international quality compliance
- FDA license for pharmaceutical manufacturing
- Kenya PPC board approval
- Ministry of Health approval – Republic of Yemen
- State Good Manufacturing Practices (GMP) certification
- GLP license from local FDA
- Certifications enable export market access and client confidence
- Broad Product Portfolio & Therapeutic Coverage:
- 943 approved products across diverse therapeutic segments
- Capabilities spanning oral solids, liquids, topicals, and sterile preparations
- Specialization in sterile ophthalmic ointments (niche segment)
- Schedule X drug manufacturing capability (psychotropics, controlled substances)
- Diversified product base attracts varied client segments
- Established Client Relationships:
- Serves 100+ clients including reputed names like J.B. Chemicals, Troikaa Pharmaceuticals
- Long-term relationships with pharmaceutical marketers and exporters
- Repeat business indicating client satisfaction
- Client stickiness due to regulatory approval cycles and quality consistency
- Strategic Location in Gujarat Pharma Hub:
- Located in Sanand GIDC II, Ahmedabad – a well-established pharmaceutical cluster
- Access to skilled pharmaceutical workforce
- Proximity to raw material suppliers and logistics networks
- Gujarat’s supportive industrial infrastructure and policies
- Cost-effective operations compared to metro cities
- Scalable Manufacturing Capacity:
- Large installed capacity: 138 crore tablets, 15.75 crore capsules annually
- Ability to handle batch production and large-volume orders
- IPO proceeds allocated for capacity upgradation and storage expansion
- Scalability supports revenue growth without proportionate capex
- Experienced Promoter Team:
- Promoters with 15+ years of pharmaceutical industry experience
- Educational background: B.Pharm, M.Sc. Pharmacology (UK)
- Founding members with hands-on operational expertise
- Continuity from partnership firm (2010) to listed company (2025)
- Strong Revenue Growth Trajectory:
- Revenue increased 38% from ₹35.87 cr (FY24) to ₹49.65 cr (FY25)
- PAT increased 25% from ₹4.87 cr (FY24) to ₹6.11 cr (FY25)
- Demonstrates ability to scale operations and improve profitability
- Growing demand from clients for contract manufacturing services
- Asset-Light Model in Loan License Manufacturing:
- Client provides raw materials, formulations, and licenses
- Company provides manufacturing services and quality control
- Minimal inventory risk and working capital requirements in this vertical
- Higher margins due to lower input costs
- Scalable without proportionate asset investments
- Industry Tailwinds – Indian Pharma Growth:
- India’s pharmaceutical sector projected to grow 9-11% annually
- Contract manufacturing gaining traction as branded companies outsource production
- Rising demand for generics globally
- Government support for pharmaceutical exports and manufacturing
- FY18-FY23 CAGR: 6-8% (8% exports, 6% domestic)
Key Risks & Challenges
- Extreme Dependency on Marketing Partners (100+ Clients):
- Company manufactures but does NOT market/distribute own products (except <1% direct exports)
- Entirely dependent on third-party pharmaceutical marketing companies for sales
- No control over downstream distribution, pricing, or market access
- Marketing partner underperformance, payment delays, or competitor engagement disrupts revenue
- Financial health of marketing partners directly impacts company’s cash flow
- Limited visibility into end-customer demand and market trends
- Negative Operating Cash Flow – Working Capital Intensity:
- Negative cash flow from operating activities: -₹1.76 crore in FY25
- Driven by: tax payments, trade payable settlements, inventory buildup, short-term advances
- Negative investing cash flows in FY25 (₹0.02 cr), FY24 (₹0.06 cr), FY23 (₹0.55 cr), Q1 FY26 (₹0.13 cr)
- Pharmaceutical contract manufacturing inherently working capital intensive
- ₹11.25 crore (40.9% of IPO proceeds) allocated to working capital addressing this issue
- Continued negative cash flows constrain organic growth and expansion
- High Outstanding Debt – ₹15.31 Crore:
- Financial indebtedness of ₹15.31 crore as of July 31, 2025
- Interest burden impacts profitability
- Only ₹1.86 crore (6.8% of IPO) allocated for debt repayment – insufficient deleveraging
- Failure to service loans can hurt operations and financial position
- Lenders may impose stricter covenants or demand collateral
- Intense Competition in Fragmented Contract Manufacturing Market:
- Operates in highly competitive and fragmented pharmaceutical CMO (Contract Manufacturing Organization) space
- Competes with established players: Sun Pharma CDMO, Cipla, Laurus Labs, Solara Active Pharma, Piramal Pharma Solutions
- Numerous mid-sized and small contract manufacturers offering price competition
- Large pharma companies backward integrating into in-house manufacturing
- Low switching costs for clients – pricing pressure on margins
- Differentiation limited to quality, delivery timelines, and compliance
- Client & Revenue Concentration Risk:
- While serving 100+ clients, dependency on top clients likely high (financial disclosures pending)
- Loss of major clients materially impacts revenue and capacity utilization
- Client preferences shifting to larger, more diversified CMOs
- No long-term contracts mentioned – operates on order-by-order basis
- Revenue visibility limited to current order book
- Single Facility Concentration Risk:
- ALL manufacturing operations in single location (Sanand, Gujarat)
- Any disruption (fire, natural disaster, regulatory action, labor strike) halts entire production
- No backup or alternate manufacturing facility
- Geographic concentration creates vulnerability
- IPO proceeds also allocated to same facility (not diversification)
- Limited Direct Export Presence (<1% Revenue):
- Direct exports to Yemen and Kenya contribute less than 1% of total revenue
- Heavy reliance on domestic contract manufacturing
- Own brand marketing underdeveloped
- Missing opportunities in lucrative export markets
- Dependency on merchant exporters for international sales (no direct relationships)
- Regulatory & Compliance Burden:
- Operating in highly regulated pharmaceutical industry under Drug Controller General of India (DCGI) and FDA oversight
- Maintaining WHO-GMP, FDA licenses, Schedule X drug approvals requires continuous compliance investments
- Product registrations in new countries (₹2.69 cr allocation) time-consuming and uncertain
- Any regulatory action, license suspension, or product recalls catastrophic
- Quality deviations can lead to client terminations and reputational damage
- Raw Material Price Volatility & Supplier Dependency:
- Dependent on Active Pharmaceutical Ingredients (APIs) and excipients with fluctuating prices
- Global supply chain disruptions (China-dependent APIs) impact availability and costs
- In contract manufacturing model, company bears raw material procurement risk
- Limited ability to pass on sharp cost increases to clients under fixed-price contracts
- Supplier concentration and quality consistency challenges
- Working Capital Cycle Challenges:
- Pharmaceutical manufacturing involves: raw material procurement, production lead times, credit periods to clients
- Trade receivables collection cycles extended
- Inventory carrying costs (raw materials + finished goods)
- ₹11.25 crore working capital requirement (40.9% of IPO) indicates ongoing liquidity pressures
- Cash conversion cycle mismatches strain finances
- Small Scale & Limited Operating History:
- Revenue of just ₹49.65 crore in FY25 – very small scale
- Market cap post-IPO ~₹75 crore – micro-cap company
- Limited financial track record for listed entity analysis
- Scalability and competitiveness against larger CMOs untested
- SME listing on NSE – lower liquidity and institutional participation
- Promoter Experience Limited to Partnership/Private Phase:
- Promoters experienced in running partnership firm and private limited company
- Listed company governance, compliance, and investor expectations different
- Need to build public market governance standards
- Execution capabilities at larger scale untested
- SME Listing – Liquidity Constraints:
- NSE SME platform has lower trading volumes than mainboard
- Limited institutional investor interest in micro-cap pharma SMEs
- Price discovery challenges and higher volatility
- Difficulty in exiting positions during market downturns
- Limited analyst coverage
- High Minimum Investment Requirement (₹2.56 lakh):
- Minimum 2 lots (2,000 shares) = ₹2,56,000 at upper band
- Significantly higher than typical mainboard IPO minimums
- Limits retail investor participation
- May affect subscription levels
- Therapeutic & Product Concentration:
- While 943 products approved, actual revenue concentration by product/therapeutic area unclear
- Dependence on few key products/formulations creates vulnerability
- Market shifts, new competing drugs, or client formulation changes impact revenue
- Limited pipeline disclosure for new product development
Disclaimer: This information is based on publicly available sources including SEBI RHP/DRHP filings and company disclosures. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. The company operates in a highly competitive, capital-intensive pharmaceutical sector with negative operating cash flows, high debt, and dependency on marketing partners. SME investments carry higher risks than mainboard listings. Grey Market Premium is unofficial.
