Hindustan Labs, RK Steel get Sebi nod to launch IPOs

Indian pharmaceutical firm Hindustan Laboratories has received observations from capital markets regulator Sebi, clearing a key step toward its proposed initial public offering (IPO). The IPO comprises a total issue size of up to 14.1 million equity shares with a face value of Rs 10 each. This includes a fresh issue of up to 5 million shares and an offer for sale (OFS) of up to 9.1 million shares by existing shareholders.

According to the filing, the company intends to use the net proceeds from the fresh issue primarily to fund its working capital requirements and for general corporate purposes.

Hindustan Laboratories operates in the generic pharmaceuticals segment, focusing on the large-scale manufacturing and supply of affordable medicines. Its portfolio mainly consists of generic formulations, drugs whose patents have expired and are typically priced lower than branded alternatives, making them widely accessible.

The company’s business model is largely business-to-government (B2G), with a strong presence in public procurement systems. It supplies medicines under contracts for central government projects routed through agencies of the Ministry of Health and Family Welfare, as well as various state government bodies. These government institutions form the bulk of its customer base.

The IPO is being managed by Choice Capital Advisors Private Limited, which has been appointed as the book-running lead manager for the issue.

Apart from Hindustan Labs, RK Steel has also received the nod from regulator to launch the issue.

Incorporated in 2006, RK Steel Manufacturing is a prominent manufacturer of welded structural steel tubes and pipes. The company boasts a diverse product portfolio, including Pre-Galvanised Pipes (GP), Hot Dip Galvanised Pipes (GI), Hot Rolled Pipes (HR), and Cold Rolled Pipes (CR), alongside value-added products like GP Coils and CRFH Coils.