Zydus Lifesciences, formerly known as Cadila Lifesciences, has selected three investment banks to advise on its upcoming ₹5,000-crore qualified institutional placement (QIP), according to multiple industry sources. The Ahmedabad-based pharmaceutical company is preparing for a major fundraise aimed at reducing debt and accelerating mergers and acquisitions (M&A), particularly in its US speciality business.

Contents

Jefferies, JP Morgan & IIFL Capital Onboarded Rationale Behind the Capital Raise Debt Position and Financial Performance M&A Strategy: Strengthening Global and Wellness Presence

Jefferies, JP Morgan & IIFL Capital Onboarded

Sources confirmed that Jefferies, JP Morgan and IIFL Capital have been chosen as advisors for the planned QIP.

A second person familiar with the development said the deal could be launched by late December or early 2026, depending on market conditions.
All three investment banks declined to comment, and queries sent to Zydus Lifesciences remained unanswered at the time of publication.

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Rationale Behind the Capital Raise

During the Q2 FY26 earnings call, Zydus Lifesciences Managing Director Dr Sharvil Patel detailed the company’s reasons for initiating the fundraise.

Patel said the primary objective is to delever the balance sheet and reduce existing debt. He added that strategic moves will strengthen the company’s capital structure, enhance its financial agility, and position it better for future growth.

He noted that the board has approved an enabling resolution, giving the company flexibility to tap capital markets when required.

Focus Areas Outlined by the Management

Patel highlighted several areas the funds may support:

US speciality business expansion, including opportunities beyond Saroglitazar, its liver disease drug
European market opportunities
Acquisition of innovative assets

Zydus plans to submit a US regulatory application for Saroglitazar in Q1 2026, as per earlier reports.

Debt Position and Financial Performance

Zydus Lifesciences continues to prioritise debt management. Patel outlined the company’s target net debt to EBITDA ratio, noting:

Without acquisitions, Zydus doesn’t want the ratio to cross 1x
For short periods, it may rise to 2x, but will be brought back to 1x

Latest Financial Metrics

Exchange data indicates:

FY25–26 revenue: ₹15,116 crore
Net profit: ₹5,774 crore

According to a Crisil Ratings report (September 9):

Gross debt: ₹3,213 crore as of March 31, 2025 (up from ₹804 crore in FY24) due to higher working capital needs
Liquidity: ₹5,681 crore as of March 31, 2025

Crisil expects Zydus’s business risk profile to improve, supported by:

Double-digit revenue growth in FY25 and FY26
Rising domestic and international traction
Ramp-up in new chemical entities and biosimilars
Operational gains from recent acquisitions
Sustained operating margins at 25–26%

M&A Strategy: Strengthening Global and Wellness Presence

Zydus Lifesciences has been active on the acquisition front this year.

MedTech Expansion

Earlier, Zydus acquired a majority stake in French medical technology company Amplitude Surgical SA for around ₹2,450 crore.
The deal includes an 85.6% controlling stake and expands Zydus’s presence in lower-limb orthopaedic solutions.

Consumer Wellness Acquisition

In the wellness segment, subsidiary Zydus Wellness acquired UK-based Comfort Click Limited (CCL)—a fast-growing digital consumer healthcare platform in the vitamins, minerals, and supplements (VMS) market.
CCL generates most of its revenue through e-commerce and direct-to-consumer channels.

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