TCG Lifesciences Files DRHP With SEBI

TCG Lifesciences, one of the leading life sciences research services and informatics organisations promoted by Dr Purnendu Chatterjee and TCG Lifesciences Mauritius Limited with operations in India, the UK and the US, has filed its draft red herring prospectus (DRHP) with the Securities & Exchange Board of India (SEBI) to enter the capital market with its initial public offering of equity shares.

The company proposes to issue 9,500,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The issue comprises a fresh issue of 9,000,000 equity shares and a reservation of up to 500,000 equity shares for eligible employees. The issue will constitute 14.41% of the fully diluted post issue paid-up capital of the company. The net issue will constitute 13.65% of the fully diluted post Issue paid-up capital of the company.

The company is considering a pre-IPO placement of upto 15,00,000 equity shares with certain investors. The company will complete the issuance of such equity shares prior to the filing of the red herring prospectus with the Registrar of Companies. If the pre-IPO Placement is completed, then (i) the issue size offered to the public would be reduced to the extent of such Pre-IPO Placement, subject to a minimum issue size of 10% of the post-issue capital being offered to the public and (ii) the employee reservation portion shall (if required) be accordingly reduced.

The issue is being made through the 100% book building process wherein at least 60% of the Net Issue will be allocated on a proportionate basis to qualified institutional buyers, out of which 5% shall be available for allocation on a proportionate basis to mutual funds only. Further, not less than 10% of the net issue will be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the net issue will be available for allocation on a proportionate basis to retail individual bidders, subject to valid bids being received at or above the Issue Price. The objects of the Issue are primarily to finance capital expenditure; finance capital investments in subsidiaries; repay debt and for general corporate purposes.

The company’s business is structured to enable a translational medicine approach delivering fully integrated end-to-end discovery and development solutions to the global life sciences industry, which includes many large and mid-market global pharmaceutical and biotechnology companies. It offers solutions in discovery research, translational research, clinical development and enterprise informatics.

The equity shares are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.

The BRLMs to the issue are Kotak Mahindra Capital Company Limited and Enam Securities Private Limited.