Evoq Remedies SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- Listing date
- 30 Mar 2022
- Face value
- ₹10 per share
- Issue price
- ₹27 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹9.72 Cr
- Market cap at offer price
- ₹36.72 Cr
- Promoter holding
- 99.99% → 73.53% pre-issue → post-issue
- ISIN
- INE0JVD01011
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Swastika Investmart Ltd.
- Registered office
- A-1106, Empire Business Hub, Near AUDA Water Tank, Science City Road, Sola, 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 | 1,80,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹27
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,08,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,16,000 |
| S-HNI (max) | 9 | 36,000 | ₹9,72,000 |
| B-HNI (min) | 10 | 40,000 | ₹10,80,000 |
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 (₹) | 10.05 | — |
| P/E (×) | 2.69 | — |
| Market cap | — | ₹36.72 Cr |
Key performance indicators
- Return on net worth
- 96.94%
- NAV per share
- ₹10.37
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Evoq Remedies SME
Evoq Remedies Limited was incorporated on February 24, 2010, as Salus Life Science and Research Private Limited and later renamed to Evoq Remedies Limited. The company was struck off in 2017 but restored in 2018. Although formed in 2010, the company began operations in 2018. Evoq operates as a recognized trading house for Pharmaceuticals Raw Materials, Excipients, and Bulk Drugs in Ahmedabad, Gujarat. The company procures pharmaceutical products and chemicals from WHO-GMP approved manufacturers in India and focuses on distribution expertise. The company operates with storage facilities in Ahmedabad and maintains a team of industry experts offering quality products at affordable prices, procuring from certified and reliable manufacturers and importers following stringent national and international quality and safety standards. As of February 10, 2022, the company reported revenue from operations of ₹1,056.58 lakhs and a profit after tax of ₹93.67 lakhs.
Company Analysis
from RHPEvoq Remedies Limited is a trading house specializing in pharmaceuticals raw materials, excipients, and bulk drugs distribution in the Indian market, primarily serving customers in Gujarat.
Evoq Remedies Limited was incorporated on February 24, 2010, as Salus Life Science and Research Private Limited and later renamed to Evoq Remedies Limited. The company was struck off in 2017 but restored in 2018. Although formed in 2010, the company began operations in 2018. Evoq operates as a recognized trading house for Pharmaceuticals Raw Materials, Excipients, and Bulk Drugs in Ahmedabad, Gujarat. The company procures pharmaceutical products and chemicals from WHO-GMP approved manufacturers in India and focuses on distribution expertise. The company operates with storage facilities in Ahmedabad and maintains a team of industry experts offering quality products at affordable prices, procuring from certified and reliable manufacturers and importers following stringent national and international quality and safety standards. As of February 10, 2022, the company reported revenue from operations of ₹1,056.58 lakhs and a profit after tax of ₹93.67 lakhs.
Objects of the Issue
- To Meet Incremental Working Capital Requirements ₹644.00 Lakhs p.15
- General Corporate Purpose ₹233.40 Lakhs p.15
- To Meet Incremental Working Capital Requirements ₹644.00 Lakhs p.63
- General Corporate Purpose ₹233.40 Lakhs p.63
- To meet Public Issue Expenses ₹94.60 Lakhs p.63
- General corporate purposes
Issue Structure
- Total Issue
- ₹972.00 Lakhs
- Fresh Issue
- ₹972.00 Lakhs
- Offer for Sale
- Nil
- Face Value
- ₹10 per Equity Share
Business Model
Evoq Remedies operates as a pharmaceutical trading house, procuring pharmaceuticals raw materials, excipients, and bulk drugs from WHO-GMP approved manufacturers and importers in India and selling them to customers. The company derives 100% of its sales from trading operations focused on distribution, with revenue generation based on purchasing products from suppliers and selling them to customers at higher prices.
Business Segments
SWOT Analysis
- • Established presence in Gujarat pharmaceutical trading with growing sales trajectory(p.14)
- • Sourcing from WHO-GMP certified manufacturers ensuring quality compliance(p.14)
- • Revenue growth trajectory from FY2019 to Feb 2022(p.17)
- • Experienced management with 11+ years in pharma industry(p.80)
- • Sourcing from WHO-GMP certified suppliers(p.80)
- • Recognized trading house in pharmaceutical raw materials and excipients(p.80)
- • Established track record in IPO management(p.310)
- • Multiple past IPO listings with varying performance outcomes(p.310)
- • Company was previously struck off by ROC and directors disqualified; later restored(p.21)
- • Promoters and group members have history of loan defaults and settlements(p.21)
- • 100% revenue concentration from top 10 customers with 81.95% from related parties(p.23)
- • Premises leased, not owned; registered office lease not formally registered with government(p.23)
- • Heavy dependence on few suppliers with 96.24% of purchases from related parties(p.23)
- • Unsecured loans from directors repayable on demand pose cash flow risk(p.24)
- • Negative operating cash flows in past years(p.27)
- • Significant litigation involving promoters, directors, and group companies(p.22)
- • Corporate records not traceable; MGT-14 form missing for object clause changes(p.24)
- • Non-compliance with Accounting Standard 18 on related party disclosures(p.24)
- • No insurance coverage on goods and offices(p.26)
- • Very small employee base with limited human resources(p.82)
- • Company was struck off and directors disqualified; only recently restored(p.93)
- • Recent company formation with operations starting only in 2018(p.80)
- • Significant dependence on limited customer base in Ahmedabad(p.80)
- • High unsecured borrowings relative to size(p.65)
- • No insurance coverage as of prospectus date(p.83)
- • Limited recent IPO activity(p.311)
- • Mixed historical IPO performance with significant discounts(p.310)
- • Pharmaceutical excipients market growing at 6.53% CAGR to reach $7.7B by 2022(p.15)
- • Asia-Pacific pharmaceutical excipients market fastest-growing due to low labor costs and increased outsourcing(p.15)
- • Global API market expected to reach $198.8 billion by 2022 with 6.4% CAGR(p.15)
- • India positioned as major API player due to low operating costs and high medical research investments(p.15)
- • Indian pharma industry growth estimated at 9-11% in FY22(p.14)
- • Healthy revenue growth in domestic and emerging markets despite US pricing pressures(p.14)
- • Expanding customer base and geographical presence(p.81)
- • Growth in global pharmaceuticals market(p.76)
- • Strong growth in Indian pharma industry(p.77)
- • Expanding into API business leveraging company location(p.81)
- • Rising demand for pharmaceutical excipients(p.78)
- • Improving brand visibility and channel expansion(p.81)
- • Potential for growth in IPO issuance market(p.309)
- • Geographic concentration of business in Gujarat region heightens exposure to regional adversity(p.22)
- • Regulatory changes could adversely affect operations(p.29)
- • 100% revenue derived from India; economic downturn would impact business(p.29)
- • Interest rate fluctuations could increase debt servicing costs(p.30)
- • COVID-19 pandemic could cause operational disruptions and financial impact(p.29)
- • Global economic and political factors beyond company control could harm business(p.29)
- • Equity share price may be volatile with no assurance of active trading(p.22)
- • Issue price may not be indicative of market price; shares could trade below issue price(p.30)
- • No long-term arrangements with clients creates continuity risk(p.26)
- • High working capital requirements create dependency on adequate funding sources(p.27)
- • Intense competition from organized and unorganized players(p.82)
- • Global economic slowdown and supply disruptions(p.75)
- • Volatile pricing pressure in pharmaceutical market(p.78)
- • Price control regulations on pharmaceutical products(p.86)
- • Regulatory compliance burden and drug approval requirements(p.85)
- • Broad-based inflation and rising fossil fuel prices(p.75)
- • Dependence on WHO-GMP certified suppliers(p.80)
- • Market volatility affecting IPO valuations(p.310)
- • Regulatory compliance requirements(p.309)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Bhumishth Narendrabhai Patel | Promoter | 54.9957% | 40.4380% |
| Mrs. Payal Bhumishth Patel | Promoter | 45.0007% | 33.0888% |
| Mr. Bhumishth Narendrabhai Patel | Promoter | 54.9957% | 40.438% |
| Mrs. Payal Bhumishth Patel | Promoter | 45.0007% | 33.0887% |
| Bhumishth Patel | Promoter | 54.99% | 40.41% |
| Payal Patel | Promoter | 30.00% | 22.06% |
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.