New Delhi, August 24: The Red Herring Prospectus (RHP) of Symbiotec PharmaLab has disclosed that the company is currently facing six tax-related cases and one significant civil case, amounting to ₹150.79 crore.
The company’s initial public offering (IPO) of ₹1,757 crore opened for subscription on Monday and will remain available until August 27. The pharmaceutical and biotechnology firm has set a price band of ₹938-988 per share.
According to the RHP, the legal cases against the company are pending in various courts and authorities. It warned that any adverse ruling—whether individually or collectively—could negatively impact its reputation, management continuity, business operations, financial condition, and cash flow.
Official documents also detail legal matters involving the company’s directors, subsidiaries, and promoters. Apart from the promoters, two criminal cases and eleven tax-related cases are ongoing against the directors, involving a total of ₹41.2 lakh.
The company’s subsidiaries are also embroiled in legal issues. One subsidiary faces a criminal case involving ₹36.7 lakh. The RHP also mentions a significant civil lawsuit related to the subsidiary.
Legal matters against the promoters include one criminal case, one tax-related case, and one significant civil case.
One of the company’s subsidiaries, Novia Pharmaceutical Private Limited, is involved in a crucial civil case in the Madhya Pradesh High Court. This subsidiary filed a writ petition challenging the validity of notifications related to the ‘Draft Pitampura Master Plan, 2035’ and the land acquired for a research and development center and manufacturing unit.
According to the RHP, the High Court issued orders on April 6, 2023, and August 22, 2023, to stay the implementation of the relevant notifications and has issued notices; this case is still pending.
The company has classified the mentioned legal proceedings according to its ‘Materiality Policy’ and stated that the disclosed amount is as much as can be identified and calculated.
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