Dipna Pharmachem SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Aug 2022 – 30 Aug 2022
- Listing date
- 08 Sep 2022
- Face value
- ₹10 per share
- Issue price
- ₹38 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹15.21 Cr
- Market cap at offer price
- ₹45.49 Cr
- Promoter holding
- 100.00% → 66.57% pre-issue → post-issue
- ISIN
- INE0MC401013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- A/211, Siddhi Vinayak Complex, Near D.A.V.School, Makarba, Gujarat
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 | 2,04,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹38
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,14,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,28,000 |
| S-HNI (max) | 8 | 24,000 | ₹9,12,000 |
| B-HNI (min) | 9 | 27,000 | ₹10,26,000 |
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 |
|---|---|---|
| EPS (₹) | 333.40 | — |
| P/E (×) | 0.11 | — |
| Market cap | — | ₹45.49 Cr |
Key performance indicators
- Return on net worth
- 67.12%
- NAV per share
- ₹496.74
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Dipna Pharmachem SME
Dipna Pharmachem Limited, incorporated in 2011 and converted to a public company in May 2022, operates as a trading and distribution company for pharmaceutical raw materials and chemical formulations. The company trades in a portfolio of 61 APIs and intermediates including Cephalosporins, Cardiovasculars, Anti-Bacteria, Quinolones, Veterinary, Anti-Virus, Anti-Inflammatory, Neuropsychiatry, and Steroid Hormone products. Operating primarily in Ahmedabad and surrounding areas with pan-India market presence, the company generates revenue through trading activities and commission-based chemical sales. For FY 2021-22, the company reported revenue of ₹7,276.58 lakhs with a profit after tax of ₹116.69 lakhs. The company does not manufacture products but sources and distributes them to pharmaceutical companies and healthcare institutions.
Company Analysis
from RHPDipna Pharmachem Limited is a trading and distribution company engaged in pharmaceutical raw materials (APIs), excipients, and chemical formulation products across India's pharmaceutical sector.
Dipna Pharmachem Limited, incorporated in 2011 and converted to a public company in May 2022, operates as a trading and distribution company for pharmaceutical raw materials and chemical formulations. The company trades in a portfolio of 61 APIs and intermediates including Cephalosporins, Cardiovasculars, Anti-Bacteria, Quinolones, Veterinary, Anti-Virus, Anti-Inflammatory, Neuropsychiatry, and Steroid Hormone products. Operating primarily in Ahmedabad and surrounding areas with pan-India market presence, the company generates revenue through trading activities and commission-based chemical sales. For FY 2021-22, the company reported revenue of ₹7,276.58 lakhs with a profit after tax of ₹116.69 lakhs. The company does not manufacture products but sources and distributes them to pharmaceutical companies and healthcare institutions.
Objects of the Issue
- Working Capital Requirement ₹1,110.00 lakhs p.49
- General Corporate Purposes ₹365.00 lakhs p.49
- Objects of the Issue not explicitly stated in this section of the document
Issue Structure
- Total Issue
- ₹1,520.76 lakhs
- Fresh Issue
- 40,02,000 Equity Shares of face value ₹10 each at ₹38 per share
- Price Band
- Fixed Price of ₹38 per Equity Share
- Lot Size
- 3,000 Equity Shares and in multiples thereof
- Face Value
- ₹10 per Equity Share
Business Model
Trading and distribution of pharmaceutical raw materials (Active Pharmaceutical Ingredients), excipients, and chemical formulation products on purchase order basis without long-term supply contracts. Revenue is generated from trading margins on pharmaceutical raw materials and commission income from chemical sales.
Business Segments
SWOT Analysis
- • Diversified pharmaceutical product portfolio(p.16)
- • Pan-India market reach as trading and distribution company(p.16)
- • Strong revenue growth(p.32)
- • Significant profitability improvement(p.32)
- • Diversified product portfolio across pharmaceutical segments(p.70)
- • Experienced promoter with 2+ decades in pharmaceutical trading(p.70)
- • High customer satisfaction and retention from quality service(p.71)
- • Multi-source raw material procurement reducing supply dependence(p.71)
- • Price competitiveness enabling survival in thin-margin market(p.73)
- • Rented registered office with no long-term lease certainty(p.20)
- • Cross-collateral arrangement exposes company to promoter group default risk(p.21)
- • Statutory compliance gaps in prior financial statements(p.21)
- • Dependence on purchase order basis with no long-term supply agreements(p.21)
- • Unsecured demand loans from directors(p.24)
- • Historical GST compliance failures(p.22)
- • High working capital requirements(p.24)
- • Litigation involving promoters(p.24)
- • High customer concentration with top 10 buyers representing 61.95% of revenue(p.72)
- • High supplier concentration with top 10 suppliers representing 49.32% of procurement(p.72)
- • High financial leverage with total debt-to-equity ratio of 5.86 pre-issue(p.108)
- • Significant litigation against promoter under Negotiable Instruments Act(p.125)
- • No own manufacturing facility, purely trading business model(p.72)
- • Limited employee base of only 13 permanent employees(p.72)
- • Growing Indian pharmaceutical industry with expansion opportunity(p.16)
- • Rapid pharma industry growth projections(p.16)
- • Cost competitiveness advantage of Indian manufacturing(p.16)
- • Strong export growth momentum in Indian pharma sector(p.16)
- • Indian pharma industry expected growth to $65bn by 2024 and $120-130bn by 2030(p.63)
- • Pan-India market expansion opportunity beyond current Gujarat focus(p.73)
- • Government incentives of INR 21,940 Crore approved for pharma sector(p.63)
- • Growing medical tourism demand with quality services at low costs(p.66)
- • Production Linked Incentive (PLI) scheme outlay of ₹21,940 crores for pharma manufacturing(p.66)
- • Establish cordial relationships with suppliers and customers for business growth(p.71)
- • Regulatory framework changes and compliance burden(p.28)
- • External dependency on third-party transportation(p.22)
- • Economic slowdown risk in India impacts business(p.28)
- • Foreign exchange fluctuation and FEMA compliance risks(p.23)
- • Competition from increased wage inflation for skilled employees(p.27)
- • Price volatility and liquidity risk for equity shares(p.28)
- • Highly competitive pharmaceutical trading industry with larger competitors(p.73)
- • Regulatory changes in drug pricing and pricing controls(p.75)
- • Dependence on regulatory compliance and government approvals for operations(p.111)
- • Pharmaceutical industry cyclicality and economic sensitivity(p.111)
- • Risk of changes in laws and regulations affecting industry operations(p.111)
- • Import dependence with India depending 85% on imports for medical devices(p.65)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Keyur Dipakkumar Shah | Promoter | 61.30% | 40.80% |
| Keyur Dipakkumar Shah | Promoter/Managing Director | 61.30% | — |
| Dipna Keyur Shah | Promoter Group/Non-Executive Director | 38.70% | — |
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.