Chandra Bhagat Pharma SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 31 Jan 2020 – 06 Feb 2020
- Listing date
- 14 Feb 2020
- Face value
- ₹10 per share
- Issue price
- ₹51 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹10.20 Cr
- Market cap at offer price
- ₹38.48 Cr
- Promoter holding
- 96.72% → 71.08% pre-issue → post-issue
- ISIN
- INE07QQ01016
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Beeline Broking Ltd.
- Registered office
- 323-F Bhagat Bhuvan,, Dr. Ambedkar Road,, Matunga (East),, 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 |
|---|---|---|---|
| Market maker | 1,00,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹51
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,02,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,04,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,18,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,20,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹38.48 Cr |
About Chandra Bhagat Pharma SME
Chandra Bhagat Pharma Limited ('CBC') was incorporated as 'Chandra Bhagat Pharma Private Limited' at Mumbai on March 10, 2003 by Mr. Hemant Bhagat and his father Late Shree Chandravadan Bhagat, and on April 1, 2003 it acquired the going-concern business of the partnership firm M/s. Chandra Bhagat Corporation along with all its assets and liabilities; following conversion to a public limited company, its name was changed to 'Chandra Bhagat Pharma Limited' vide fresh certificate dated March 20, 2019. The company runs a marketing-led pharmaceutical business structured in three profit-center divisions: (1) ethical marketing of pharmaceutical formulations under its own trademarks (e.g., Tigemor, Uroprase, Oncoginase) — focused on critical-care IV (intravenous) and IM (intramuscular) injections, dry syrups, tablets and capsules sold to multi-specialty hospitals, government hospitals and nursing homes; (2) generic and bulk/make-to-order supply of formulations to institutions, wholesalers, hospitals, healthcare centers and government organizations; and (3) specialty chemicals, intermediates and APIs, which it sources, imports, indents and supplies (major APIs: Urokinase, L-Asparaginase, Heparin Sodium, Enoxaparin Sodium). CBC owns no manufacturing plant: it obtains FDA approvals and gets formulations manufactured by four contract manufacturers (loan license / principal-to-principal arrangements) with facilities in Maharashtra, Gujarat and Himachal Pradesh, and reaches the market through its own sales force, medical representatives and a network of super-stockists/distributors across Indian states, besides exporting formulations to Philippines, Bolivia and DR Congo. It also has a supply and distribution agreement with Sinopharm India Private Limited (subsidiary of China National Pharmaceutical Group) for importing the Hepatitis A vaccine, whose registration application was under review with CDSCO as of October 1, 2019. Revenue from operations grew from ₹8,978.63 lakh in FY2016-17 to ₹9,705.94 lakh in FY2017-18 and ₹10,627.82 lakh in FY2018-19, with profit after tax of ₹62.59 lakh in FY2018-19.
Company Analysis
from DRHPChandra Bhagat Pharma Limited is a Mumbai-based pharmaceutical marketing company that ethically markets critical-care pharmaceutical formulations (IV & IM injections, tablets, capsules) under its own brands through third-party contract manufacturers, and also sources, imports and supplies specialty chemicals and active pharmaceutical ingredients (APIs) across domestic and export markets.
Chandra Bhagat Pharma Limited ('CBC') was incorporated as 'Chandra Bhagat Pharma Private Limited' at Mumbai on March 10, 2003 by Mr. Hemant Bhagat and his father Late Shree Chandravadan Bhagat, and on April 1, 2003 it acquired the going-concern business of the partnership firm M/s. Chandra Bhagat Corporation along with all its assets and liabilities; following conversion to a public limited company, its name was changed to 'Chandra Bhagat Pharma Limited' vide fresh certificate dated March 20, 2019. The company runs a marketing-led pharmaceutical business structured in three profit-center divisions: (1) ethical marketing of pharmaceutical formulations under its own trademarks (e.g., Tigemor, Uroprase, Oncoginase) — focused on critical-care IV (intravenous) and IM (intramuscular) injections, dry syrups, tablets and capsules sold to multi-specialty hospitals, government hospitals and nursing homes; (2) generic and bulk/make-to-order supply of formulations to institutions, wholesalers, hospitals, healthcare centers and government organizations; and (3) specialty chemicals, intermediates and APIs, which it sources, imports, indents and supplies (major APIs: Urokinase, L-Asparaginase, Heparin Sodium, Enoxaparin Sodium). CBC owns no manufacturing plant: it obtains FDA approvals and gets formulations manufactured by four contract manufacturers (loan license / principal-to-principal arrangements) with facilities in Maharashtra, Gujarat and Himachal Pradesh, and reaches the market through its own sales force, medical representatives and a network of super-stockists/distributors across Indian states, besides exporting formulations to Philippines, Bolivia and DR Congo. It also has a supply and distribution agreement with Sinopharm India Private Limited (subsidiary of China National Pharmaceutical Group) for importing the Hepatitis A vaccine, whose registration application was under review with CDSCO as of October 1, 2019. Revenue from operations grew from ₹8,978.63 lakh in FY2016-17 to ₹9,705.94 lakh in FY2017-18 and ₹10,627.82 lakh in FY2018-19, with profit after tax of ₹62.59 lakh in FY2018-19.
Objects of the Issue
- To Meet Incremental Working Capital Requirements ₹700.00 Lakhs p.63
- Setting up Distribution and Warehousing Centre's ₹150.00 Lakhs p.64
- General Corporate Purpose ₹95.00 Lakhs p.65
- To meet Public Issue Expenses ₹75.00 Lakhs p.65
Issue Structure
- Total Issue
- ₹1020.00 Lakh (2000000 Equity Shares of face value ₹10 each at ₹51 per Equity Share)
- Fresh Issue
- Entire issue is a fresh public issue of 2000000 Equity Shares aggregating to ₹1020.00 Lakh (of which 100000 Equity Shares aggregating ₹51.00 Lakh reserved for Market Maker; Net Issue of 1900000 Equity Shares aggregating ₹969.00 Lakh)
- Price Band
- Fixed Price Issue at ₹51 per Equity Share (including share premium of ₹41 per Equity Share); Issue Price is 5.1 times the face value
- Face Value
- ₹10
Business Model
CBC earns revenue by selling pharmaceutical formulations that are manufactured for it by third-party FDA/WHO-approved contract manufacturers under its own brands (ethical marketing through its sales force, medical representatives and distributors/stockists to hospitals and nursing homes), by bulk/make-to-order generic supplies to institutions, government bodies and healthcare centers, by merchant exports of formulations to Philippines, Bolivia and DR Congo, and by trading — sourcing, importing, indenting and supplying — specialty chemicals, intermediates and APIs to pharma companies in India. It does not own any manufacturing plant, so capacity and capacity utilisation are stated as not applicable.
Business Segments
SWOT Analysis
- • Experienced promoters with 41+ years combined experience in pharmaceutical products, bulk drugs and vaccines(p.77)
- • Scalable, customer-centric and order-driven business model(p.79)
- • Relationship with multinational company Sinopharm for Hepatitis A vaccine import(p.79)
- • Wide and diverse product portfolio spanning pharmaceuticals and APIs(p.79)
- • Diversified business operations and revenue base across geographies and therapeutic areas(p.80)
- • Strong sales, marketing and extensive domestic distribution network(p.80)
- • Strategically located contract manufacturing facilities(p.80)
- • Heavy customer concentration – top 10 customers contribute ~96% of sales(p.21)
- • Heavy supplier concentration – top 10 suppliers contribute ~94–99% of purchases(p.22)
- • Reliance on only four third-party contract manufacturers for all production(p.19)
- • Low net profit margins compared to industry standards(p.22)
- • Declining profit after tax over the last two financial years(p.25)
- • Working-capital-intensive business driven by high debtor days(p.22)
- • Unsecured loans of ₹1,039.40 Lakh recallable at any time with no formal agreements(p.23)
- • Non-compliance with Section 203 of Companies Act, 2013 (Company Secretary not appointed)(p.18)
- • Planned launch of four vaccination products (HepA, IPV, Pneumococcal, Varicella)(p.82)
- • Export expansion into South East Asia, Middle East, Latin America and West Africa(p.80)
- • Indian pharmaceutical industry expected to expand at 22.4% CAGR to US$55 billion by 2020(p.75)
- • India's medicine spending projected to grow 9–12% over the next five years(p.76)
- • Government policy support for end-to-end drug manufacturing(p.75)
- • IPO-funded setup of four distribution and warehousing centres (Bhiwandi, Chennai, Ahmedabad, Delhi)(p.65)
- • Intense competition from local, multinational and unorganized players(p.23)
- • Highly regulated pharmaceutical industry dependent on approvals and renewals(p.23)
- • Fluctuations in prices of traded goods/materials procured from third-party suppliers(p.20)
- • Foreign currency exchange rate fluctuations affecting export revenues(p.27)
- • Export concentration in Philippines, Bolivia and DR Congo(p.24)
- • Interest rate increases raising debt-servicing costs(p.32)
- • Counterfeit and pirated products harming goodwill and market share(p.24)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Hemant Chandravadan Bhagat | Promoter & Chairman Cum Managing Director | 52.41% | 38.52% |
| Mr. Pranav Hemant Bhagat | Promoter & Whole-Time Director | 11.86% | 8.72% |
Leadership
Auto-extracted from the company's DRHP 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 DRHP before relying on it.