Amkay Products
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Apr 2024 – 03 May 2024
- Listing date
- 08 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹55 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹12.61 Cr
- Market cap at offer price
- ₹47.61 Cr
- Promoter holding
- 99.89% → 73.44% pre-issue → post-issue
- ISIN
- INE0QSB01016
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- Bunglow No.68, Rashmi Park, CHS Ltd., Dhumal Nagar, Waliv Road, Vasai, Dist.Palghar, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 6,50,000 | — | — |
| Market maker | 1,20,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹55
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,10,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,20,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,90,000 |
| B-HNI (min) | 10 | 20,000 | ₹11,00,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.37 | 3.32 |
| P/E (×) | 23.21 | 16.57 |
| Price to book (×) | 3.55 | — |
| Market cap | — | ₹47.61 Cr |
Key performance indicators
- Return on net worth
- 21.82%
- ROCE
- 21.54%
- Debt / equity
- 0.48
- PAT margin
- 9.47%
- NAV per share
- ₹15.51
- Price to book
- 3.55
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Amkay Products
Amkay Products Limited, incorporated on October 25, 2007 and converted to a public company on August 28, 2023, is a manufacturer and marketer of medical devices and healthcare products. The company operates two manufacturing facilities at Achhad Industrial Estate in Thane, Maharashtra, producing surgical disposables and home healthcare products. In addition to manufacturing, the company engages in branding and trading of healthcare products like diapers, surgical blades, ambu bags, and other medical devices sourced from third-party manufacturers. The company generates revenue primarily from sales to dealers, hospitals, nursing homes, and healthcare centers across India, with significant concentration in Maharashtra.
Company Analysis
from RHPAmkay Products Limited manufactures, assembles, and markets medical devices, disposables, and healthcare products including face masks, alcohol swabs, lancet needles, nebulizers, and pulse oximeters for hospitals, clinics, and nursing homes across India.
Amkay Products Limited, incorporated on October 25, 2007 and converted to a public company on August 28, 2023, is a manufacturer and marketer of medical devices and healthcare products. The company operates two manufacturing facilities at Achhad Industrial Estate in Thane, Maharashtra, producing surgical disposables and home healthcare products. In addition to manufacturing, the company engages in branding and trading of healthcare products like diapers, surgical blades, ambu bags, and other medical devices sourced from third-party manufacturers. The company generates revenue primarily from sales to dealers, hospitals, nursing homes, and healthcare centers across India, with significant concentration in Maharashtra.
Objects of the Issue
- Funding Capital Expenditure towards installation of additional Machinery ₹50.20 lakhs p.23
- To meet working capital requirements ₹800.00 lakhs p.23
- General Corporate Purpose p.23
- Funding Capital Expenditure towards installation of additional Machinery ₹50.20 Lakhs p.74
- To meet working capital requirements ₹800.00 Lakhs p.74
- General Corporate Purpose [●] p.74
- Specific objects of the offer not stated in this part of the document
Issue Structure
- Total Issue
- ₹[●] lakhs (Upto 22,92,000 Equity Shares)
- Fresh Issue
- Upto 22,92,000 Equity Shares of face value of ₹10 each aggregating to ₹[●] lakhs
- Offer for Sale
- Nil
- Price Band
- [●]
- Lot Size
- [●]
- Face Value
- ₹10 per Equity Share
Business Model
The company operates through a combination of manufacturing and trading. It manufactures medical devices and disposables at its facilities in Maharashtra and sells these products directly to healthcare institutions, hospitals, clinics, nursing homes, and through dealers. Additionally, it sources certain products from third-party manufacturers and brands/trades these products. For the period ending December 31, 2023 and fiscal years 2023, 2022, and 2021, the company generated revenue from manufactured products as well as from branding and trading of third-party products.
Business Segments
SWOT Analysis
- • Presence in growing Indian medical devices market(p.20)
- • Diversified product portfolio across medical devices and disposables(p.20)
- • Diverse product portfolio addressing varied market segments(p.81)
- • Extensive geographic distribution network(p.81)
- • Quality assurance and standardized manufacturing(p.81)
- • Multi-geography revenue diversification(p.81)
- • Experienced management with proven track record(p.81)
- • Rising PAT margin and profitability(p.84)
- • Diverse product portfolio across medical devices and healthcare products(p.103)
- • Extensive dealer network covering major parts of India(p.103)
- • Quality assurance with ISO 9001:2015 and CE certifications(p.104)
- • Experienced promoters with 20+ and 12 years of industry experience(p.102)
- • Diversified revenue from multiple geographies across India(p.104)
- • Strong manufacturing infrastructure with ISO certification(p.102)
- • Established portfolio of 30+ healthcare products with diversified revenue sources(p.186)
- • Significant manufacturing capacity and infrastructure(p.186)
- • ISO 9001:2015 quality certification(p.186)
- • Experienced promoter leadership with 20+ years industry expertise(p.186)
- • Strong profitability with PAT margin of 9.47% as of December 31, 2023(p.190)
- • Shift towards higher-margin in-house manufacturing reducing reliance on third-party sourcing(p.190)
- • Concentration of manufacturing in single location vulnerable to disruptions(p.29)
- • Heavy dependence on few key customers for revenue(p.30)
- • Significant dependence on few suppliers for raw materials(p.29)
- • Reliance on external manufacturers for some products(p.29)
- • Declining revenue trend over recent years(p.31)
- • High dependence on Promoters for business continuity(p.37)
- • Significant indebtedness exposing company to financial risks(p.36)
- • Non-ownership of warehouse for inventory storage(p.35)
- • Declining revenue from operations(p.84)
- • High inventory holding requirements(p.76)
- • Significant trade receivables concentration(p.76)
- • Modest EBITDA margin relative to peer operations(p.84)
- • Limited scale compared to listed peers(p.83)
- • Significant short-term borrowings(p.47)
- • Declining revenue trend with significant drop from FY2020-21 to FY2022-23(p.102)
- • Manufacturing capacity underutilization across key products(p.112)
- • Heavy dependence on limited product categories and a few top customers(p.103)
- • Significant decrease in EBITDA margins despite stable profitability(p.102)
- • Heavy dependence on unsecured loans from related parties and non-institutional sources(p.162)
- • Significant accumulated employee benefit obligations (gratuity)(p.158)
- • Relatively low net worth and equity base for a manufacturing company(p.176)
- • High debt-to-equity ratio of 0.48 indicating moderate leverage(p.179)
- • Increased inventory holding with ratio rising from 41 days to 66 days(p.181)
- • Government support for medical device manufacturing in India(p.35)
- • Expansion into new geographical markets(p.29)
- • Growing healthcare infrastructure and spending in India(p.35)
- • Expanding medical devices market with strong growth trajectory(p.99)
- • Rising per capita income driving healthcare consumption(p.98)
- • Government support and policy initiatives for medical devices sector(p.101)
- • Increasing blood lancet demand trajectory(p.75)
- • Healthcare infrastructure expansion and capacity building(p.97)
- • Government healthcare spending increase(p.97)
- • Expansion capability through machinery investment(p.75)
- • Expand into new geographies domestically and internationally(p.105)
- • Enhance digital presence and e-commerce penetration(p.105)
- • Increase exports to international markets(p.102)
- • Leverage cost efficiency and economies of scale through capital investment(p.105)
- • Continue improving quality standards and product certifications(p.104)
- • Expansion of domestic healthcare market reaching 99.60% revenue from domestic sales(p.186)
- • Growth in medical device manufacturing sector with regulatory compliance framework established(p.201)
- • Potential for export market expansion with existing presence in Bhutan, Nepal and Qatar(p.186)
- • Increasing shift towards in-house manufacturing to improve margins(p.190)
- • Potential to add more value-added healthcare products to existing portfolio(p.186)
- • Concentration of sales in single state exposes to regional risks(p.28)
- • Disruptions in raw material supply due to external factors(p.30)
- • Intense competition from larger and established competitors(p.35)
- • Dependence on healthcare spending levels in India(p.35)
- • Regulatory and licensing requirements for product approvals(p.30)
- • Product liability and quality control risks in healthcare(p.31)
- • Exposure to macroeconomic slowdown affecting healthcare demand(p.43)
- • Foreign currency exchange rate fluctuations affecting imports and exports(p.39)
- • High import dependency creating competitive pressure(p.99)
- • Intense competition from established multinational players(p.99)
- • Global economic headwinds and inflation pressures(p.90)
- • Commodity price volatility impacting production costs(p.90)
- • Supply chain disruptions from global events(p.92)
- • Regulatory changes and compliance requirements for medical devices(p.101)
- • Competition from organized and unorganized players(p.113)
- • Regulatory compliance and evolving medical device regulations(p.116)
- • Supply chain risks and dependence on raw material suppliers(p.113)
- • Potential insurance coverage gaps for manufacturing risks(p.113)
- • Foreign exchange and import price volatility(p.113)
- • Significant decline in revenue from Rs. 4,069.95 Lakhs (FY 2021) to Rs. 2,274.62 Lakhs (Dec 2023) due to post-COVID normalization(p.192)
- • Intense competition in healthcare devices and disposables sector(p.187)
- • Regulatory changes and compliance requirements for medical devices(p.187)
- • Pending litigation regarding product patent infringement(p.196)
- • Blacklisting and penalties from government procurement authorities(p.197)
- • GST demand of Rs. 16.10 Lakhs for FY 2020-21 pending resolution(p.180)
- • Fluctuations in input costs and supply chain disruptions(p.187)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Kashyap Pravin Mody | Promoter | 42.10% | 30.95% |
| Hemanshu Kantilal Batavia | Promoter | 18.10% | 13.31% |
| Pravin Vrajlal Mody | Promoter Group | 1.81% | 1.33% |
| Hiral Kashyap Mody | Promoter Group | 5.95% | 4.38% |
| Pravin V Modi HUF | Promoter Group | 4.82% | 3.54% |
| Kashyap Pravin Modi HUF | Promoter Group | 18.66% | 13.72% |
| Giriraj Stocks & Securities Private Limited | Promoter Group | 8.44% | 6.21% |
| Kashyap Pravin Mody | Promoter | 42.10% | 30.95% |
| Hemanshu Kantilal Batavia | Promoter | 18.10% | 13.31% |
| Pravin Vrajlal Mody | Promoter Group | 1.81% | 1.33% |
| Hiral Kashyap Mody | Promoter Group | 5.95% | 4.38% |
| Pravin V Modi HUF | Promoter Group | 4.82% | 3.54% |
| Kashyap Pravin Modi HUF | Promoter Group | 18.66% | 13.72% |
| Giriraj Stocks & Securities Private Limited | Promoter Group | 8.44% | 6.21% |
| Kashyap Pravin Mody | Promoter | 42.10% | — |
| Hemanshu Kantilal Batavia | Promoter | 18.10% | — |
| Kashyap Pravin Mody | Promoter | 42.10% | — |
| Hemanshu Kantilal Batavia | Promoter | 18.10% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.