Infinium Pharmachem
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 31 Mar 2023 – 05 Apr 2023
- Listing date
- 17 Apr 2023
- Face value
- ₹10 per share
- Issue price
- ₹135 per share
- Lot size
- 1,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹25.25 Cr
- Market cap at offer price
- ₹93.93 Cr
- Promoter holding
- 100.00% → 73.05% pre-issue → post-issue
- ISIN
- INE0MRE01011
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Swastika Investmart Ltd.
- Registered office
- 38 G.I.D.C Sojitra, Taluka, Sojitra, 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 | 94,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹135
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 7,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 8,000 | ₹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 (₹) | 54.13 | — |
| P/E (×) | 2.49 | — |
| Market cap | — | ₹93.93 Cr |
Key performance indicators
- Return on net worth
- 46.61%
- ROCE
- 72.00%
- Debt / equity
- 2.91
- PAT margin
- 6.16%
- EBITDA margin
- 11.06%
- NAV per share
- ₹123.45
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Infinium Pharmachem
Infinium Pharmachem Limited was incorporated on November 21st, 2003 as a private limited company and converted to public limited on August 12th, 2022. The company manufactures and supplies iodine derivatives, pharma intermediates, and active pharmaceutical ingredients (APIs) from its facility at Plot No. 37, 38, 39, 29, 30, 01 GIDC Sojitra, Dist. Anand, Gujarat. The company operates under a CRAMS (Contract Research & Manufacturing Services) model emphasizing process optimization, customized manufacturing per customer requirements, reliable supply, and expertise in iodine chemistry. It provides the widest range of iodine derivatives with 200+ intermediates and 7+ APIs, serving over 250+ clients globally across pharmaceutical, biotech, fine chemical, agrochemical, human health, animal health, cosmetics, sanitation, and electrical/electronics industries. The company achieved ISO 9001-2008 certification in 2010 and has established subsidiaries including Infinium Green Energy Private Limited (June 2022) and a joint venture Shanghai Tajilin Industrial Co. Ltd. in China (2019).
Company Analysis
from RHPInfinium Pharmachem Limited manufactures and supplies iodine derivatives, pharma intermediates, and active pharmaceutical ingredients (APIs) for pharmaceutical, biotech, specialty chemicals, agrochemical, and other industries through a Contract Research & Manufacturing Services (CRAMS) model.
Infinium Pharmachem Limited was incorporated on November 21st, 2003 as a private limited company and converted to public limited on August 12th, 2022. The company manufactures and supplies iodine derivatives, pharma intermediates, and active pharmaceutical ingredients (APIs) from its facility at Plot No. 37, 38, 39, 29, 30, 01 GIDC Sojitra, Dist. Anand, Gujarat. The company operates under a CRAMS (Contract Research & Manufacturing Services) model emphasizing process optimization, customized manufacturing per customer requirements, reliable supply, and expertise in iodine chemistry. It provides the widest range of iodine derivatives with 200+ intermediates and 7+ APIs, serving over 250+ clients globally across pharmaceutical, biotech, fine chemical, agrochemical, human health, animal health, cosmetics, sanitation, and electrical/electronics industries. The company achieved ISO 9001-2008 certification in 2010 and has established subsidiaries including Infinium Green Energy Private Limited (June 2022) and a joint venture Shanghai Tajilin Industrial Co. Ltd. in China (2019).
Objects of the Issue
- Marketing and Branding Expenses (including Registrations, Reach - Europe, other marketing expenses) ₹ 113.15 Lakhs p.15
- Repayment of Existing Loans ₹ 391.88 Lakhs p.15
- Expansion of Existing Unit ₹ 505.00 Lakhs p.15
- To meet out the Working Capital of the Company ₹ 1,010.29 Lakhs p.15
- General Corporate Purpose ₹ 443.00 Lakhs p.15
- Marketing and Branding Expenses (including Registration in Reach - Europe, other marketing expenses) ₹113.15 Lakhs p.78
- Repayment of some of Existing Loans ₹391.88 Lakhs p.78
- Expansion of Existing Unit ₹505.00 Lakhs p.78
- To Meet Incremental Working Capital Requirements ₹1,010.29 Lakhs p.78
- General Corporate Purpose ₹443.00 Lakhs p.78
- —
- The document does not explicitly state the objects of the offer/specific uses of proceeds
Issue Structure
- Total Issue
- ₹ 2,525.72 Lakhs
- Fresh Issue
- 18,75,000 Equity Shares of face value of ₹ 10/- each at ₹ 135/- per share = ₹ 2,525.72 Lakhs (100% Fresh Issue)
- Offer for Sale
- Nil
- Price Band
- ₹ 135/- per Equity Share (Fixed Price Issue)
- Lot Size
- Not specified in this part of document
- Face Value
- ₹ 10/- per Equity Share
Business Model
The company generates revenue through Contract Research & Manufacturing Services (CRAMS), providing customized and confidential manufacturing solutions for iodine derivatives, pharma intermediates, and APIs. Revenue comes from manufacturing and supplying these chemical products to pharmaceutical, biotech, specialty chemicals, agrochemical, and related industries globally. For the period ended September 30, 2022, revenue from operations was Rs. 7,927.59 Lakhs; for FY 2021-22, Rs. 9,911.93 Lakhs; FY 2021, Rs. 7,053.07 Lakhs; and FY 2020, Rs. 3,884.19 Lakhs.
Business Segments
SWOT Analysis
- • Established presence in pharmaceutical manufacturing with strong customer base(p.14)
- • Diversified product portfolio in iodine chemistry and derivatives(p.14)
- • Auditable manufacturing facility meeting international standards(p.14)
- • Established CRAMS business model with process optimization capability(p.14)
- • Strategic subsidiaries and joint venture for market expansion(p.14)
- • Extensive R&D expertise in iodine derivatives(p.120)
- • Diversified global customer base across 15+ countries(p.120)
- • Reliable supply chain with multiple qualified raw material vendors(p.120)
- • Strong revenue growth trajectory(p.106)
- • High EBITDA and PAT margins(p.106)
- • Established manufacturing capability with ISO certification in specialized iodine chemistry(p.140)
- • Long operational history with experienced management team in pharmaceutical manufacturing(p.140)
- • Diversified customer base across multiple industries including pharma, chemicals, agrochemicals, and specialty sectors(p.140)
- • Specialized manufacturing in iodine-based pharmaceutical intermediates with 250+ product range(p.235)
- • Strong revenue growth trajectory with 40.53% increase FY2022 vs FY2021(p.238)
- • Improving profit margins with PAT margin of 6.95% in H1 FY2023(p.236)
- • Long operating history with company incorporated in 2003(p.235)
- • Global presence with foreign subsidiary and export operations reaching 250+ clients(p.236)
- • Improving debt-equity ratio and debt service coverage(p.233)
- • Manufacturing facility dependent on leased land from government corporation(p.22)
- • Heavy dependence on a few major customers for revenue(p.22)
- • Concentration of domestic sales in five states creating geographic vulnerability(p.23)
- • High dependence on limited supplier base for critical materials(p.23)
- • Unsecured director loans repayable on demand affecting liquidity(p.26)
- • Significant working capital requirements straining cash flows(p.29)
- • Low market penetration in new international markets(p.120)
- • Rising inventory and interest costs from sudden demand surges(p.120)
- • High debt burden requiring loan repayment(p.80)
- • Low capacity utilization rates(p.123)
- • Significant capital work in progress without corresponding revenue generation(p.170)
- • High dependence on bank borrowings and working capital facilities for operations(p.191)
- • Declining trade receivables collection efficiency and increasing receivables days(p.186)
- • Non-controlling interest in subsidiary companies representing loss of control and profit share(p.190)
- • High dependence on few customers - top customers contributed 36.22% of revenue as at Sept 2022(p.241)
- • Significant dependence on few suppliers - top suppliers contributed 46.93% as at Sept 2022(p.242)
- • High leverage with debt-equity ratio of 2.44 as at Sept 2022(p.243)
- • Capital work in progress of Rs. 1148.74 lakhs indicates ongoing expansion with execution risk(p.220)
- • Working capital loan facility at Rs. 860.99 lakhs indicates reliance on short-term borrowings(p.225)
- • Strong growth trajectory of Indian pharmaceutical exports(p.15)
- • Significant growth in Indian pharma sector and API manufacturing(p.15)
- • Expansion of manufacturing capacity through IPO proceeds(p.16)
- • Working capital enhancement to support growth and scale operations(p.16)
- • Market penetration through marketing and branding initiatives(p.16)
- • Growing market for iodine derivatives in multiple industrial applications(p.120)
- • Expansion potential in Contract Research & Manufacturing Services(p.120)
- • Significant untapped export markets(p.120)
- • Diversification into non-pharma industries(p.120)
- • Strong global iodine market growth forecasted(p.103)
- • Expansion into international markets with existing foreign subsidiary operations(p.143)
- • Contract Research & Manufacturing Services (CRAMS) business model with emphasis on customization(p.140)
- • Renewable energy subsidiary for strategic diversification into bio-coal and biomass products(p.142)
- • Significant growth in demand for pharma products due to pandemic effects(p.238)
- • Expansion into renewable energy through new subsidiary Infinium Green Energy Private Limited(p.236)
- • Strategic joint venture with Shanghai Witofly Chemical in China for global market penetration(p.236)
- • Continuous addition of new products and customers to drive revenue growth(p.238)
- • Export capabilities and One Star Export House status enabling access to international markets(p.250)
- • WHO GMP certification enabling participation in high-quality pharmaceutical supply chains(p.250)
- • Highly competitive pharmaceutical manufacturing industry(p.24)
- • Export concentration risk in China market(p.23)
- • Reliance on third-party transportation providers outside company control(p.24)
- • Hazardous chemical use creating operational and environmental risks(p.23)
- • Regulatory compliance requirements and licensing dependencies(p.27)
- • Economic dependence on Indian market and vulnerability to economic slowdown(p.32)
- • Exposure to interest rate fluctuations affecting debt servicing costs(p.32)
- • Impact of COVID-19 pandemic on business operations(p.31)
- • Regulatory and tax policy changes impacting margins(p.120)
- • Intense competition from existing market players(p.120)
- • Uncertain and volatile product-specific demand(p.120)
- • Raw material price volatility eroding profitability(p.120)
- • Global economic slowdown impacting demand(p.100)
- • Regulatory compliance requirements for hazardous waste management and chemical storage impose operational constraints(p.131)
- • Environmental compliance liabilities under EPA and pollution control regulations affecting manufacturing operations(p.131)
- • Exposure to foreign exchange volatility through international operations and exports(p.176)
- • COVID-19 pandemic impact on going concern, trade receivables, and asset reliability(p.167)
- • COVID-19 pandemic uncertainty impact on business continuity and operations(p.237)
- • Regulatory changes in pharmaceutical industry affecting manufacturing and compliance requirements(p.237)
- • Fluctuations in raw material costs and foreign exchange exposure(p.230)
- • Intense competition in pharmaceutical intermediates market(p.242)
- • Risk of manufacturing disruption and plant concentration at single location(p.237)
- • Economic cyclicality and recession risk affecting pharmaceutical demand(p.237)
- • Natural disasters risk affecting operations in Gujarat manufacturing location(p.237)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Sanjaykumar Viththalbhai Patel | Promoter | 7,99,000 shares (15.72%) | 7,99,000 shares (11.48%) |
| Mr. Pravin Bhadabhai Madhani | Promoter | 9,50,920 shares (18.71%) | 9,50,920 shares (13.67%) |
| Mr. Mitesh Lavjibhai Chikhaliya | Promoter | 3,72,180 shares (7.32%) | 3,72,180 shares (5.35%) |
| Sanjaykumar Viththalbhai Patel | Promoter | 15.72% | 11.48% |
| Pravin Bhadabhai Madhani | Promoter | 18.71% | 13.67% |
| Mitesh Lavjibhai Chikhaliya | Promoter | 7.32% | 5.35% |
| Bhadabhai Kachrabhai Madhani | Promoter Group | 14.68% | 10.72% |
| Lavjibhai Ramjibhai Chikhaliya | Promoter Group | 11.66% | 8.51% |
| Varshaben Pravinbhai Madhani | Promoter Group | 11.27% | 8.23% |
| Daxa S Patel | Promoter Group | 5.64% | 4.12% |
| Bharat K Madhani | Promoter Group | 5.34% | 3.90% |
| Shardaben Lavajibhai Chikhaliya | Promoter Group | 3.07% | 2.24% |
| Mignesh Lavjibhai Chikhaliya | Promoter Group | 2.23% | 1.63% |
| Piyush Chikhaliya | Promoter Group | 1.24% | 0.90% |
| Urvisha Piyush Chikhaliya | Promoter Group | 1.11% | 0.81% |
| Viththalbhai Ramjibhai Chikhaliya | Promoter Group | 0.66% | 0.48% |
| Virani Varsha Jignesh | Promoter Group | 0.37% | 0.27% |
| Krupa Miteshbhai Chikhaliya | Promoter Group | 0.36% | 0.27% |
| Pratikshaben L Chikhaliya | Promoter Group | 0.36% | 0.27% |
| Manjulaben Viththalbhai Chikhaliya | Promoter Group | 0.27% | 0.20% |
| Mr. Sanjaykumar Viththalbhai Patel | Promoter | 15.72% | — |
| Mr. Pravin Bhadabhai Madhani | Promoter | 18.71% | — |
| Mr. Mitesh Lavjibhai Chikhaliya | Promoter | 7.32% | — |
| Pravinbhai B Madhani | Promoter | 18.71% | — |
| Sanjaybhai V Patel | Promoter | 15.72% | — |
| Mitesh L. Chikhaliya | Promoter | 7.32% | — |
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.