Oxygenta Pharmaceutical Limited (formerly **S.S. Organics Limited**) is an Indian pharmaceutical manufacturer specializing in **Bulk Drugs**, **Active Pharmaceutical Ingredients (APIs)**, **Organic Fine Chemicals**, and medical/veterinary preparations. Following a period of rebranding and structural overhaul, the company is currently transitioning under new leadership to scale its manufacturing capabilities and expand its footprint in international export markets. --- ### **Strategic Ownership Transition & Corporate Control** The company has recently undergone a definitive change in management and promoter structure. As of **June 20, 2025**, **Virupaksha Organics Limited** became the **Holding Company** of Oxygenta Pharmaceutical Limited. * **Acquisition Details:** Virupaksha Organics acquired a **55.37%** stake through Share Purchase Agreements (SPA) and a Memorandum of Understanding (MOU), followed by an **Open Offer** for an additional **26.00%** of the voting share capital. * **Transaction Pricing:** The acquisition was executed at **₹21.00** per share via SPA/MOU and **₹40.00** per share through the Open Offer, representing a total maximum consideration of **₹38.46 Crore** for the offer portion. * **Leadership Overhaul:** The transition led to the appointment of **Mr. Chandra Mouliswar Reddy Gangavaram** and **Mr. Balasubba Reddy Mamilla** as Executive Directors. Previous promoters, including **Mr. Sai Sudhakar Vankineni**, were reclassified to the **Public Category** in **November 2025**. * **Operational Continuity:** The new management has committed to maintaining the current line of business for at least **2 years**, with a moratorium on the sale or lease of significant assets during this period. --- ### **Manufacturing Infrastructure & R&D Capabilities** Operations are centralized at an integrated facility in Telangana, which has recently seen capital reinvestment following a fire in **Block A**. * **Location:** Survey No. 252/1, **Aroor Village**, Sadasivapet Mandal, Medak District, Telangana. * **Asset Modernization:** Management replaced fire-damaged plant and machinery with **new reactors** to optimize conversion processes. * **Research & Development:** The site features a dedicated **R&D center** focused on process improvement for intermediates and final products to enhance yield and reduce costs. * **Asset Life Policy:** * **Factory Buildings:** **30–60 years** * **Plant and Equipment:** **15–25 years** * **Office Equipment / Furniture:** **5–10 years** --- ### **Financial Performance & Capital Structure** Oxygenta is navigating a phase of high revenue growth coupled with widening operational losses as it scales its new capacity. **Key Financial Metrics (Ind AS):** | Metric (Rs. in Crore) | Q1 FY 2025-26 | Q1 FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | :---: | | **Total Revenue** | **15.13** | **12.62** | **39.64** | **30.99** | | **Loss Before Tax** | **(8.15)** | **(2.82)** | **(3.48)** | - | | **Net EPS (Rs.)** | - | - | **(1.09)** | - | **Capital Position (as of October 2024):** * **Authorized Share Capital:** **₹37.50 Crores** (3,75,00,000 Equity Shares of **₹10** each). * **Paid-up Equity Capital:** **₹35.48 Crores** (3,54,83,500 fully paid-up shares). * **Listing:** Listed on **BSE Limited** (Scrip Code: **524636**). * **Dematerialization:** **96.40%** of shares are held in electronic form. * **Liquidity:** Shares are classified as **infrequently traded** under SEBI regulations. --- ### **Resource Mobilization & Debt Profile** To support its expansion and working capital needs, the company has significantly increased its borrowing capacity and utilized related-party financing. * **Borrowing Limits:** Increased from **₹100 Crores** to **₹200 Crores** in **August 2025**. * **Convertible Debt:** Approval is in place to raise up to **₹60 Crores** through loans with an option for equity conversion. * **Intercorporate Loan:** A **₹14.50 Crore** unsecured loan was availed from the holding company, **Virupaksha Organics Limited**, at **9% simple interest** with a **3-year tenure**. * **Bank Facilities:** * **Term Loan:** **₹4.74 Crore** from ICICI Bank (Repo Rate + **3.5%**), repayable over **7 years**. * **Working Capital:** Secured by a first pari-passu charge on current assets and personal guarantees from Directors. * **Equity Infusions:** * **May 2024:** **20,00,000** shares allotted at **₹16** each. * **October 2024:** **15,00,000** warrants converted at **₹15** each. * **FY 2023-24:** **1,92,82,200** shares allotted at **₹15** each. --- ### **Collaborative Business Model & Related Party Strategy** Oxygenta leverages a network of related entities to optimize procurement and financial services. * **Procurement Efficiency:** The company utilizes **Classic Chemicals** (owned by Director Sunil Vishram Chawda) as a procurement agent to access **large-volume negotiated pricing** for raw materials. * **Service Partnerships:** Engages with **Amigos Minerals LLP**, **Amigos Molecular Solutions**, and **Qemiq Pharma Private Limited** for goods and financial services. * **Annual Transaction Limits (FY 2024-25):** * **Virupaksha Organics Limited:** Up to **₹200 Crores**. * **Amigos Minerals LLP:** Up to **₹50 Crores**. * **Classic Chemicals:** Up to **₹20 Crores**. --- ### **Risk Factors & Regulatory Compliance** Investors should note the following regulatory, litigation, and operational risks: **1. Regulatory Actions:** * **License Suspension:** In **October 2025**, the **DCA** suspended manufacturing licenses for **Etoricoxib, Vildagliptin, Lacosamide, and Telmisartan** for **7 days**. * **SEBI Penalties:** Paid **₹34,00,000** in historical fines for LODR non-compliance and **₹5,00,000** in **2023** for non-disclosure of related party transactions. **2. Contingent Liabilities & Litigation:** | Nature of Dispute | Amount | Status | | :--- | :--- | :--- | | **Income Tax (AY 06-07, 09-10)** | **₹5.73 Crores** | Under Appeal | | **GST Demands (FY 17-18)** | **₹60.01 Lakhs** | Disputed ITC | | **Provident Fund Demand** | **₹21.01 Lakhs** | Liability Acknowledged | **3. Operational & Market Risks:** * **Input Costs:** Profitability is highly sensitive to the rising cost of raw materials; the company does not currently use **derivatives** to hedge commodity prices. * **Credit Risk:** Implemented an **Expected Credit Loss (ECL)** provision of **₹77.23 Lakhs** in FY 2024-25. * **Public Float:** The company must ensure compliance with the **25% Minimum Public Shareholding (MPS)** requirement following the takeover. * **Lock-in Periods:** Significant promoter and non-promoter holdings are locked until **July 2025** and **January 2026**.