Company Overview - Encube Ethicals, founded in 1998 by Mehul Shah, is a pharmaceutical contract development and manufacturing organization (CDMO) focused on topical formulations, including well-known brands like Soframycin [5][12] - The company operates three manufacturing facilities located in Goa and Indore, serving customers in India and the US, and has secured regulatory approvals from 12 overseas authorities, including the US FDA [6][12] Investment and Valuation - A consortium of Warburg Pincus and Mubadala is set to acquire a majority stake of up to 74% in Encube Ethicals, valuing the company at approximately Rs 16,500 crore ($1.8 billion), which translates to about 24 times its projected FY26 EBITDA [1][12] - The financial investors are expected to fully exit, while the promoter group will dilute their stake to 15-20%, becoming a junior partner [3][13] Financial Performance and Projections - Encube Ethicals has experienced significant growth, with sales expected to reach Rs 4,000 crore in the next three years, up from Rs 500 crore in 2021, and projected FY26 revenue at Rs 1,880 crore [8][12] - The company aims for a 30% EBITDA margin in FY27, with its CDMO unit accounting for nearly half of its business [8][9] Market Dynamics - The demand for scaled CDMO businesses is strong, driven by global supply chain diversification away from China and the positive long-term impact of the US BioSecure Act [1][12] - Encube has filed for abbreviated new drug applications (ANDAs) in the US for several new products, which is expected to contribute over Rs 800 crore to its topline [9][12] Strategic Intent - Encube intends to expand into complex products in gynecology and dermatology, areas that have historically been challenging for even large pharmaceutical companies [10][12] - The management is optimistic about signing a share purchase agreement within the next two to three weeks, indicating a proactive approach to the acquisition process [5][12]