About the Company:
The company functions as an integrated pharmaceutical entity in India, engaging in research and development, manufacturing, drug distribution, marketing, and exports. It operates in three segments: a contract development and manufacturing organization (CDMO) serving Indian pharmaceutical companies, a domestic branded generics business, and an international branded generics business.
The international branded generic product business focuses on exporting to emerging and semi-regulated international markets, with plans for expansion into regulated markets like the United Kingdom and Canada. Key customers include Cipla Limited, Glenmark Pharmaceuticals Limited, Wockhardt Limited, Emcure Pharmaceuticals Limited, Lupin Limited, Eris Healthcare Private Limited, Ajanta Pharma Limited, and Mankind Pharma Limited.
In Fiscal 2023 and the three months ending June 30, 2023, the company produced over 600 generics, marketed through a network of 5,000 distributors and stockists to 150,000 retail pharmacies in India. It owns two manufacturing facilities in Baddi, Himachal Pradesh, securing the third position in finished tablet and capsule manufacturing capacity among Indian peers, according to CRISIL Research.
IPO Objectives:
- Repayment and / or prepayment in part or in full, of certain outstanding loans of the Company;
- Investment in the Subsidiary, UML, for repayment and / or prepayment in part or full of outstanding loans availed by UML;
- Funding the working capital requirements; and
- General corporate purposes
Promoter Holding:
The Promoters of the company, namely Manoj Kumar Lohariwala and Vinay Kumar Lohariwala
| Share Holding Pre Issue | 66.85% |
Summary of Financial Information:
| Period Ended | 30 Jun 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 1,086.16 | 704.41 | 575.48 | 369.62 |
| Revenue | 234.37 | 935.58 | 803.41 | 412.03 |
| Profit After Tax | 17.59 | 67.95 | 63.95 | 34.50 |
| Net Worth | 294.27 | 276.46 | 208.56 | 144.78 |
| Reserves and Surplus | 317.51 | 228.51 | 196.61 | 132.82 |
| Total Borrowing | 441.90 | 235.19 | 198.18 | 45.03 |
Key Performance Indicators:
| KPI | Values |
| P/E (x) | 31.64 |
| Post P/E (x) | 36.42 |
| Market Cap (Rs. Cr.) | 2563.7 |
| ROE | 24.58% |
| ROCE | 22.61% |
| Debt/Equity | 0.85 |
| EPS (Rs) | 14.16 |
| RoNW | 24.58% |
Comparison with peers:
| Company Name | P/E | P/B | RoE (%) |
| Innova Captab Limited | 31 | 7.31 | 24.58 |
| Torrent Pharmaceuticals Limited | 54 | 10.82 | 20.5 |
| Laurus Labs Limited | 58 | 5.34 | 21.63 |
| Ajanta Pharma Limited | 36 | 6.84 | 17.68 |
| JB Chemicals & Pharmaceuticals Limited | 47 | 8.4 | 18.51 |
| NATCO Pharma Limited | 12 | 2.63 | 15.66 |
| Eris Lifesciences Limited | 31 | 4.97 | 18.25 |
| Indoco Remedies Limited | 33 | 3.52 | 14.72 |
| Suven Pharmaceuticals Limited | 41 | 9.11 | 25.21 |
| Windlas Biotech Limited | 18 | 2.06 | 10.76 |
Key IPO Details:
| IPO Date | December 21 to December 26, 2023 |
| Listing Date | December 29, 2023 |
| Face Value | Rs. 10 per share |
| Price Band | Rs. 426 to Rs. 448 per share |
| Lot Size | 33 Shares |
| Total Issue Size | 12,723,214 shares (Rs. 570.00 Cr) |
| Fresh Issue | 7,142,857 shares (Rs. 320.00 Cr) |
| Offer for Sale | 5,580,357 shares (Rs. 250.00 Cr) |
| GMP | Rs. 100 (22.32%) [Only for information purpose] |
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
