About Company’s Business:
They are a comprehensive pharmaceutical company based in India, with a notable presence throughout the pharmaceuticals value chain. Their operations encompass research and development, manufacturing, drug distribution, marketing, and exports. The company is engaged in three key areas: (i) serving as a Contract Development and Manufacturing Organization (CDMO) offering research, product development, and manufacturing services to Indian pharmaceutical companies, (ii) managing a domestic business focused on branded generics, and (iii) overseeing an international business dedicated to branded generics. In the fiscal year 2022, they achieved significant rankings among Indian formulation CDMO players according to the CRISIL Report. Specifically, they secured the third-highest operating revenue, the second-highest operating profit margin, the third-highest net profit margin, and the second-highest return on capital employed
About the Industry:
The Indian Contract Development and Manufacturing Organization (CDMO) market has experienced a growth rate of 14% over the past five years, spanning from Fiscal 2018 to Fiscal 2023. CRISIL Research anticipates the continuation of this upward trend in the next five years, from Fiscal 2023 to Fiscal 2028. The Indian CDMO market is projected to exhibit a Compound Annual Growth Rate (CAGR) of approximately 12-14% during this period, increasing from ₹1,310 billion in Fiscal 2023 to an estimated ₹2,400-2,500 billion in Fiscal 2028.According to CRISIL Research’s findings in October 2023, oral solids dominate the Indian formulations industry, constituting around 63% in terms of value and 62% in terms of volume in Fiscal 2023. Moreover, the injectables segment accounted for 14-15% in value and approximately 14% in volume among all dosage forms provided by the domestic formulations industry in Fiscal 2023.
Key Financial Information (â‚ą in million):
| Particulars | June 30, 2023 | March 31, 2023 | March 31, 2022 | March 31, 2021 |
|---|---|---|---|---|
| Equity Share capital (in â‚ą) | 480.00 | 480.00 | 120.00 | 120.00 |
| Total equity (in â‚ą) | 3,655.06 | 2,765.06 | 2,086.06 | 1,448.21 |
| Revenue from operations (in â‚ą) | 2,332.43 | 9,263.80 | 8,005.26 | 4,106.62 |
| Profit for the period/year (in â‚ą) | 175.93 | 679.54 | 639.53 | 345.00 |
| Earnings per equity share (basic) | 3.67 | 14.16 | 13.32 | 7.19 |
| Earnings per equity share (diluted) | 3.67 | 14.16 | 13.32 | 7.19 |
| Net Asset Value per Equity Share | 61.31 | 57.60 | 43.45 | 30.16 |
| Current borrowings (in â‚ą) | 1,462.17 | 1,010.15 | 1,308.30 | 390.26 |
| Non-current borrowings (in â‚ą) | 2,956.83 | 1,341.77 | 673.52 | 60.00 |
| Total Borrowings (in â‚ą) | 4,419.00 | 2,351.92 | 1,981.82 | 450.26 |
Objective of the Issue:
-
Repayment and/or prepayment, in part or in full, of certain outstanding loans of our Company
-
Investment in our Subsidiary, UML, for repayment and / or prepayment in part or full of outstanding loans availed by UML
-
Funding our working capital requirements
-
General corporate purposes.
For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.
| Important information regarding the IPO | |
|---|---|
| Open Date | Thursday, December 21, 2023 |
| Close Date | Tuesday, December 26, 2023 |
| Issue Size | â‚ą570 Crores |
| Price | â‚ą426 to â‚ą448 per share |
| Lot Size | 33 Shares |
| Basis of Allotment | Wednesday, December 27, 2023 |
| Initiation of Refunds | Thursday, December 28, 2023 |
| Credit of Shares to Demat | Thursday, December 28, 2023 |
| Listing Date | Friday, December 29, 2023 |
How to apply for this IPO?
You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.
Do let us know your thoughts on this IPO.