Zydus Lifesciences Prepares Up to ₹5,000 Crore QIP to Strengthen Balance Sheet and Pursue M&A Plans

Ahmedabad, November 21: Zydus Lifesciences has announced that it is planning to launch a Qualified Institutional Placement (QIP) to raise around ₹5,000 crore. The company is planning to raise the funds to have capital and reduce its current debt, and grow its business by making strategic acquisitions. The QIP is a part of the company’s long term financial strategy.

Zydus Lifesciences Limited (NSE: ZYDUSLIFE, BSE: 532321) is a leading Indian multinational pharmaceutical company that is fully integrated across the entire healthcare value chain. It is a major player globally, with a significant focus on regulated markets like the US and Europe. The company was established in 1952, and is headquartered in Ahmedabad, Gujarat.

Three Investment Banks Appointed for the QIP

Zydus Lifesciences has appointed Jefferies, JP Morgan and IIFL Capital as advisors for the planned QIP. The company announced that the QIP is expected to be launched by the end of December 2025, or early 2026.

Why the QIP?

During the recent quarterly earnings call, managing director Dr Sharvil Patel said that the main objective behind the fundraise is to deleverage the balance sheet by bringing down existing debt. He also said that the QIP will also help the company improve its capital structure and have financial flexibility. He further added that the fundraise will allow the company to explore opportunities in its US specialty business. As of now, the company is also evaluating expansion plans in Europe.

This comes after the company saw a rise in its debt. For FY25-26, the company reported revenue of ₹15,116 crore and a net profit of ₹5,774 crore. As of March 31, 2025, gross debt stood at ₹3,213 crore, rising from ₹804 crore a year earlier.

Shares Fall by 0.24% at ₹928

Yesterday, Zydus Lifesciences share price closed 0.24%, or 2.20 points lower at ₹928. The shares made an intraday high of ₹937.30 and an intraday low of ₹926.20. The current market cap of the company is ₹93,379 crore.

Investor Takeaway for Zydus Lifesciences

Zydus Lifesciences’ ₹5,000 crore QIP will help the company have adequate funds to reduce its debt and acquire other entities for growth. The QIP comes at a time when the company saw a rise in its debt. It is a good sign that the company’s management identified the rising debt and started plans to consider a QIP. Investors will hope for the share price to rise today, based on the company’s announcement to raise funds.

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations