Granules India to Raise ₹1,760 Crore; Secures Key USFDA Nod

Introduction

Granules India Ltd. has announced significant strategic moves, with its board approving a substantial fundraising plan of nearly ₹1,760 crore. This capital infusion is planned through a combination of convertible warrants and equity shares. The development coincides with the company's subsidiary receiving a tentative approval from the U.S. Food and Drug Administration (USFDA) for a generic drug used to treat Attention Deficit Hyperactivity Disorder (ADHD), signaling a dual boost for its growth prospects.

A Detailed Look at the Fundraising Plan

The company's board, in a meeting on December 23, 2025, greenlit a two-pronged approach to raise capital. The primary component involves raising up to ₹1,462.50 crore through the issuance of 2.50 crore convertible warrants on a preferential basis. These warrants will be priced at ₹585 each and will be offered to both promoter group members and non-promoter investors. Each warrant can be converted into one fully paid-up equity share within 18 months from the date of allotment.

In addition to the warrants, the board has also approved raising up to ₹300 crore by issuing 51.28 lakh equity shares, also priced at ₹585 per share. This tranche will be allotted to various non-promoter category investors. Together, these initiatives are set to inject approximately ₹1,762.50 crore into the company, bolstering its financial standing for future strategic initiatives.

Fundraising Breakdown

Regulatory Approvals and Next Steps

The proposed fundraising is contingent upon receiving necessary approvals from regulatory and statutory authorities. A crucial step in this process is securing shareholder consent. To this end, Granules India has scheduled an Extra-Ordinary General Meeting (EGM) on January 22, 2026, which will be conducted via video conferencing. The outcome of this meeting will be pivotal in moving the capital-raising plan forward.

USFDA Approval Boosts Product Pipeline

In a separate but equally important development, Granules Pharmaceuticals Inc., a wholly-owned subsidiary, received tentative approval from the USFDA for its Abbreviated New Drug Application (ANDA) for Amphetamine Extended Release Orally Disintegrating Tablets. This product is a generic equivalent of Adzenys XR ODT, a medication prescribed for ADHD. The approval covers multiple strengths, including 3.1 mg, 6.3 mg, 9.4 mg, 12.5 mg, 15.7 mg, and 18.8 mg.

Market Opportunity and Manufacturing

The generic ADHD drug targets a significant market. According to IQVIA data for the 12 months ending in November, the estimated market size for this product is approximately $172 million. The tablets will be manufactured at Granules' facility in Chantilly, Virginia, USA, positioning the company to effectively serve the North American market. This approval strengthens the company's product pipeline in the central nervous system (CNS) therapeutic area.

Financial Health and Performance

Granules India has demonstrated robust financial performance. The company reported a 35% year-on-year increase in net profit to ₹131 crore. Its revenue from operations grew by 34.2% to ₹1,297 crore, while EBITDA saw a 37% rise to ₹278 crore. The EBITDA margin also saw a slight improvement, moving to 21.4% from 21% in the corresponding period last year. The company's market capitalization stands at ₹14,674.18 crore.

Stock Market Reaction

Following these announcements, the company's stock showed mixed activity. On the day of the announcement, shares were trading around ₹603.65 on the NSE, up by 0.48%. Over the past six months, the stock has delivered a return of over 21%. However, on a year-to-date basis, the stock has remained largely flat. The share price hit its 52-week high of ₹621.10 in early January 2025 and a 52-week low of ₹422 in April 2025.

Conclusion

Granules India's dual strategy of strengthening its balance sheet through a significant fundraising round and expanding its product portfolio with a key USFDA approval positions it for sustained growth. The capital infusion will provide the necessary resources for expansion and strategic investments, while the new generic drug approval opens up a lucrative market segment. The successful execution of these plans, pending shareholder approval, will be closely watched by investors.