Mono Pharmacare
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Aug 2023 – 30 Aug 2023
- Listing date
- 07 Sep 2023
- Face value
- ₹10 per share
- Issue price
- ₹28 per share
- Lot size
- 4,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹14.84 Cr
- Market cap at offer price
- ₹49.47 Cr
- Promoter holding
- 81.02% → 56.72% pre-issue → post-issue
- ISIN
- INE0OIP01012
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- 1A, Krinkal Apartment Opp., Mahalaxmi Temple, Paldi, 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 | 2,76,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹28
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,12,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,24,000 |
| S-HNI (max) | 8 | 32,000 | ₹8,96,000 |
| B-HNI (min) | 9 | 36,000 | ₹10,08,000 |
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 (₹) | 1.99 | — |
| P/E (×) | 14.07 | — |
| Market cap | — | ₹49.47 Cr |
Key performance indicators
- Return on net worth
- 9.01%
- ROCE
- 10.34%
- Debt / equity
- 2.92
- PAT margin
- 2.11%
- NAV per share
- ₹19.92
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Mono Pharmacare
Mono Pharmacare Limited traces its origins to the partnership firm 'M/s. Mono Chemist' formed by partnership deed dated May 06, 1994. Promoters Panilam Lakhatariya and Supal Lakhatariya joined as partners on May 10, 2018, acquired 100% ownership on July 25, 2019, and the firm was converted into a public limited company under Part I (Chapter XXI) of the Companies Act, 2013 as Mono Pharmacare Limited vide Certificate of Incorporation dated October 17, 2022 issued by the Registrar of Companies, Ahmedabad (CIN U24304GJ2022PLC136193). The company runs two business lines: (i) marketing of pharmaceutical products, under which it gives compositions to approximately 19 third-party contract manufacturers and sells the finished goods under its brand 'DLS Export' through its own distribution network, with a portfolio spanning antibiotics, anti-fungals, anti-cough-cold & anti-allergic, antacids & anti-emetics, analgesics & antipyretics, nutraceuticals, skincare, antiseptics, cardiac & diabetic products and cosmetics; and (ii) distribution for various pharmaceutical companies — as on February 28, 2023 it dealt with 168 pharmaceutical companies as distributor/stockist and was connected with 3,036 customers/vendors comprising retail pharmacy stores and wholesalers. Growth has been built partly through acquisitions: DLS Export (proprietorship of Panilam Lakhatariya) via business transfer agreement dated December 15, 2022 for ₹609 lakhs, and 99% ownership of partnership firms Ahmedabad Medical Corporation and Supal Distributors LLP on January 10, 2023. Operations are concentrated in the western region of Gujarat, particularly Ahmedabad. Per the KPI/restated disclosures, revenue from operations was ₹5,847.64 lakhs in Fiscal 2023 (₹3,698.30 lakhs in FY2022; ₹2,826.61 lakhs in FY2021), with EBITDA of ₹296.57 lakhs and profit after tax of ₹123.37 lakhs in Fiscal 2023; the company had 82 employees as of July 31, 2023, including 36 marketing representatives.
Company Analysis
from RHPMono Pharmacare Limited is an Ahmedabad-based pharmaceutical company that markets medicines produced by third-party contract manufacturers under its 'DLS Export' brand and also acts as a distributor/stockist for various pharmaceutical companies, serving retail pharmacies, wholesalers and medical practitioners.
Mono Pharmacare Limited traces its origins to the partnership firm 'M/s. Mono Chemist' formed by partnership deed dated May 06, 1994. Promoters Panilam Lakhatariya and Supal Lakhatariya joined as partners on May 10, 2018, acquired 100% ownership on July 25, 2019, and the firm was converted into a public limited company under Part I (Chapter XXI) of the Companies Act, 2013 as Mono Pharmacare Limited vide Certificate of Incorporation dated October 17, 2022 issued by the Registrar of Companies, Ahmedabad (CIN U24304GJ2022PLC136193). The company runs two business lines: (i) marketing of pharmaceutical products, under which it gives compositions to approximately 19 third-party contract manufacturers and sells the finished goods under its brand 'DLS Export' through its own distribution network, with a portfolio spanning antibiotics, anti-fungals, anti-cough-cold & anti-allergic, antacids & anti-emetics, analgesics & antipyretics, nutraceuticals, skincare, antiseptics, cardiac & diabetic products and cosmetics; and (ii) distribution for various pharmaceutical companies — as on February 28, 2023 it dealt with 168 pharmaceutical companies as distributor/stockist and was connected with 3,036 customers/vendors comprising retail pharmacy stores and wholesalers. Growth has been built partly through acquisitions: DLS Export (proprietorship of Panilam Lakhatariya) via business transfer agreement dated December 15, 2022 for ₹609 lakhs, and 99% ownership of partnership firms Ahmedabad Medical Corporation and Supal Distributors LLP on January 10, 2023. Operations are concentrated in the western region of Gujarat, particularly Ahmedabad. Per the KPI/restated disclosures, revenue from operations was ₹5,847.64 lakhs in Fiscal 2023 (₹3,698.30 lakhs in FY2022; ₹2,826.61 lakhs in FY2021), with EBITDA of ₹296.57 lakhs and profit after tax of ₹123.37 lakhs in Fiscal 2023; the company had 82 employees as of July 31, 2023, including 36 marketing representatives.
Objects of the Issue
- To meet the working capital requirements ₹ 898.00 lakhs p.74
- General corporate purposes p.77
- To meet the issue expenses p.74
Issue Structure
- Total Issue
- Up to ₹ [●] Lakhs (53,00,000 Equity Shares)
- Fresh Issue
- 53,00,000 Equity Shares of face value ₹10 each aggregating up to ₹ [●] Lakhs
- Offer for Sale
- Nil
- Face Value
- ₹ 10 each
Business Model
The company earns revenue from two streams: (1) sale of its own branded pharmaceutical formulations — it supplies compositions to around 19 contract manufacturers who produce the products, which Mono then sells under its 'DLS Export' brand through its own domestic distribution network; and (2) distribution/stockist margins from buying, warehousing and reselling products of 168 pharmaceutical companies to B2B customers (retail pharmacy stores, wholesalers and medical practitioners). The document characterises the business as high-volume, low-margin, reliant on turnover growth, inventory management and distributor performance, and geographically concentrated in Ahmedabad/Gujarat.
Business Segments
SWOT Analysis
- • Experienced promoters and management team with deep pharmaceutical industry knowledge(p.113)
- • Asset-light business model enabling capital efficiency(p.113)
- • Scalable business model with established manufacturer relationships(p.113)
- • Wide and diverse product portfolio across multiple therapeutic categories(p.113)
- • Extensive network of 168 pharmaceutical companies and 3,036 customers/vendors(p.103)
- • Complete reliance on third-party contract manufacturers with no enforcement power over production schedules(p.28)
- • High volume-low margin business model constraining profitability(p.29)
- • Customer concentration — top 10 customers contribute 72.07% of revenues(p.30)
- • Dependence on distributors without non-compete agreements(p.30)
- • No long-term agreements with customers creating revenue uncertainty(p.31)
- • High total borrowings of ₹3,992.70 lakhs as of March 31, 2023(p.40)
- • Unsecured loans of ₹1,584.45 lakhs recallable by lenders at any time(p.33)
- • Geographical concentration of entire operations in Ahmedabad, Gujarat(p.36)
- • Indian pharmaceutical market expected to grow from $42 billion (2021) to $65 billion by 2024 and $120-130 billion by 2030(p.98)
- • Expansion into new geographies beyond current Ahmedabad footprint(p.114)
- • Broadening and deepening presence across existing therapeutic categories(p.114)
- • Government PLI scheme support for domestic pharmaceutical manufacturing(p.100)
- • Increasing brand visibility to strengthen competitive positioning(p.114)
- • Intense competition from local companies, multinational corporations and unorganized players(p.34)
- • Exposure to fluctuations in prices of materials and products procured from contract manufacturers(p.34)
- • Changing laws, regulations and tax regimes adversely affecting operations(p.44)
- • Financial instability in emerging markets disrupting Indian markets and business(p.44)
- • Natural or man-made disasters affecting operations and financial condition(p.46)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Panilam Lakhatariya | Promoter | 64.90% | — |
| Supal Lakhatariya | Promoter | 16.12% | — |
| Archit Shah | Promoter Group | Negligible | — |
| Pallaviben Shah | Promoter Group | Negligible | — |
| Shardaben Lakhtaria | Promoter Group | Negligible | — |
| Shivlal Lakhtaria | Promoter Group | Negligible | — |
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.