Sotac Pharmaceuticals
Book Building issueSME₹33.30 Cr issue
+3.60%
Listing gain over issue price
Issue size
₹33.30 Cr
1 lot at cut-off
₹1,33,200
Lot size
1,200shares
Open
29 Mar 2023
Close
03 Apr 2023
Allotment
10 Apr 2023
Listing
13 Apr 2023
Listing performance
Issue price
₹111
Listed at
₹115
Listing-day close
₹120.75
Latest price
₹92
Close on 21 Oct 2026
Listing gain
+3.60%
Return since issue
-17.12%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Mar 2023 – 03 Apr 2023
- Listing date
- 13 Apr 2023
- Face value
- ₹10 per share
- Issue price
- ₹111 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹33.30 Cr
- Market cap at offer price
- ₹123 Cr
- Promoter holding
- 84.63% → 72.85% pre-issue → post-issue
- ISIN
- INE0O2D01012
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- Plot No.PF-21, Nr.ACME Pharma, Opp.Teva Pharma Sanand GIDC-II, Sanand, 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 |
|---|---|---|---|
| Anchor investor · within QIB | 8,53,200 | — | — |
| Market maker | 1,50,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹111
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,33,200 |
| S-HNI (min) | 2 | 2,400 | ₹2,66,400 |
| S-HNI (max) | 7 | 8,400 | ₹9,32,400 |
| B-HNI (min) | 8 | 9,600 | ₹10,65,600 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
8,53,200
Anchor portion
₹9.47 Cr
at ₹111 per share
Valuation and performance
Valuation at offer price
₹111 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.58 | — |
| P/E (×) | 31.01 | — |
| Market cap | — | ₹123 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 43.47%
- ROCE
- 68.34%
- Debt / equity
- 1.12
- PAT margin
- 3.94%
- EBITDA margin
- 8.39%
- NAV per share
- ₹8.23
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sotac Pharmaceuticals
Sotac Pharmaceuticals Limited, incorporated on December 18, 2015, is engaged in the business of manufacturing pharmaceutical products for different marketers on loan license or contract manufacturing basis, primarily on a principle-to-principle basis. The company operates manufacturing facilities in Sanand, Ahmedabad, and has a subsidiary, Sotac Healthcare Private Limited. The company manufactures a wide range of dosage forms including tablets, capsules, external preparations/ointments, and oral liquids/syrups. Revenue from operations has grown from ₹2,860.36 lakhs in FY 2020 to ₹7,315.17 lakhs in FY 2022 (standalone basis). The company generates revenue primarily through manufacturing and contract manufacturing services for pharmaceutical marketers.
Company Analysis
from RHPSotac Pharmaceuticals Limited is a contract pharmaceutical manufacturer producing tablets, capsules, external preparations, and oral liquids for marketers on a loan-license basis.
Sotac Pharmaceuticals Limited, incorporated on December 18, 2015, is engaged in the business of manufacturing pharmaceutical products for different marketers on loan license or contract manufacturing basis, primarily on a principle-to-principle basis. The company operates manufacturing facilities in Sanand, Ahmedabad, and has a subsidiary, Sotac Healthcare Private Limited. The company manufactures a wide range of dosage forms including tablets, capsules, external preparations/ointments, and oral liquids/syrups. Revenue from operations has grown from ₹2,860.36 lakhs in FY 2020 to ₹7,315.17 lakhs in FY 2022 (standalone basis). The company generates revenue primarily through manufacturing and contract manufacturing services for pharmaceutical marketers.
Objects of the Issue
- To Meet Working Capital Requirements ₹1,080.00 lakhs p.101
- Investment in Subsidiary ₹700.00 lakhs p.101
- Upgradation / Construction of Existing /New Building in the Existing Premises ₹590.01 lakhs p.101
- General Corporate Purpose ₹739.99 lakhs p.101
- General corporate purposes
Issue Structure
- Total Issue
- ₹3,330.00 lakhs
- Fresh Issue
- 3000000 Equity Shares of ₹10/- each at a price of ₹111/- per Equity Share aggregating to ₹3,330.00 Lakhs
- Price Band
- ₹111/- per Equity Share
- Face Value
- ₹10/- per Equity Share
Business Model
The company operates as a contract manufacturer for pharmaceutical products on a loan-license or contract manufacturing basis, with business majorly on principle-to-principle basis with different marketers. Revenue is primarily generated from manufacturing and supplying pharmaceutical products (tablets, capsules, external preparations, and oral liquids) to pharmaceutical companies. The company funds working capital requirements from internal accruals, loans from directors, and financing from banks and financial institutions.
Business Segments
Manufacturing of tablet formulations
Manufacturing of capsule formulations
Manufacturing of external preparations and ointments
Manufacturing of oral liquids and syrups
Manufacturing of Non Beta-Lactam (general) tablets, Non Beta-Lactam (general) capsules, oral liquid, dry syrup and external preparations such as Ointment, Lotion and cream at manufacturing facility of SOTAC Pharmaceuticals Limited on contract-manufacturing and/or loan licence basis for 162 corporate clients.
Manufacturing of beta-lactam tablets, beta-lactam uncoated tablets, beta-lactam capsules, uncoated beta-lactam capsules, oral liquid and dry syrup at manufacturing facility of SOTAC Healthcare Private Limited (71% subsidiary) on contract-manufacturing and/or loan licence basis for 162 corporate clients.
Research of pharmaceutical molecules used in developing new pharmaceutical formulations through SOTAC Research Private Limited (100% wholly-owned subsidiary), currently conducting research for own formulation development.
Manufacturing of Nutraceuticals products and food products on contract-manufacturing basis through SOTAC Lifescience Private Limited (51% subsidiary), newly incorporated and in process of setting up manufacturing plant with commercial production yet to commence.
Direct sale of pharmaceutical products manufactured under the company's own brand names in domestic market, currently manufacturing 56 products under own brands for domestic market.
Direct export operations to USA and other offshore markets of products manufactured under the company's brand name, commenced in 2022, with 14 products majorly sold in USA and permission to sell 34 products in offshore market under SOTAC Pharmaceuticals Limited licenses.
Manufacturing and sale of pharmaceutical products for domestic market
Trading of pharmaceutical products
Manufacturing and export of pharmaceutical products
Manufacturing of Non Beta-Lactam (general) tablets and beta-lactam coated and uncoated tablets
Manufacturing of Non Beta-Lactam (general) capsules and beta-lactam capsules
Manufacturing of external preparations such as nasal spray, relief spray and cream, as well as ointments
Manufacturing of oral liquid and dry syrup
SWOT Analysis
Strengths
- • Experienced promoter team with combined 59+ years in pharmaceutical manufacturing(p.19)
- • Significant expansion of manufacturing capacity over 5 years(p.19)
- • WHO-GMP accredited manufacturing facilities(p.20)
- • Diversified customer base across 162 corporate clients(p.19)
- • Established presence in 14 major Indian states plus offshore markets(p.20)
- • Strong subsidiary structure with 71% ownership of beta-lactam manufacturer(p.19)
- • Designation as essential business during COVID-19 lockdown allowing continued operations(p.57)
- • Experienced promoter team with significant shareholding and long-term commitment(p.93)
- • Strong revenue growth trajectory and improved profitability metrics(p.64)
- • Positive return on equity and capital employed metrics(p.115)
- • Experienced promoters with combined 59+ years in pharmaceutical manufacturing(p.141)
- • Wide product portfolio across multiple therapeutic categories(p.141)
- • WHO-GMP accredited manufacturing facilities(p.141)
- • Strategic location with developed industrial infrastructure(p.148)
- • Significant capacity expansion over 5 years(p.141)
- • Strong relationships with 162 corporate clients(p.141)
- • Scalable contract manufacturing business model(p.149)
- • Experienced leadership with 15+ years in pharmaceuticals(p.184)
- • Diversified product portfolio across multiple pharmaceutical forms(p.209)
- • Strong asset base and manufacturing infrastructure(p.206)
- • Revenue growth trajectory with ₹3,974.83 Lakhs in 6-month period(p.207)
- • Over 5 years operating experience in contract manufacturing with multi-fold capacity expansion(p.281)
- • Experienced promoter team with combined 59+ years pharma manufacturing expertise(p.281)
- • WHO-GMP accredited manufacturing facilities with strategic location(p.282)
- • Large customer base of 162 corporate clients with principle-to-principle relationships(p.281)
- • Diverse product portfolio with therapeutic coverage and both domestic and international reach(p.282)
- • Strong financial growth with sustained improvement in balance sheet and profitability(p.282)
Weaknesses
- • High customer concentration with top 10 customers representing 90-94% of sales(p.46)
- • Heavy reliance on few suppliers with top 10 suppliers contributing 52-61% of purchases(p.47)
- • Single manufacturing facility concentration in Sanand, Gujarat(p.49)
- • High volume-low margin business model requiring continuous volume growth(p.47)
- • No long-term agreements with customers or suppliers(p.47)
- • History of net losses in past fiscal years(p.52)
- • Negative cash flow from operating activities in FY 2020(p.51)
- • Dependent on unsecured loans from directors repayable on demand(p.52)
- • High dependence on a single large customer for majority of revenue(p.116)
- • Significant reliance on short-term borrowings for working capital(p.63)
- • Low capacity utilization across multiple product lines(p.116)
- • Volatile consolidated profitability with loss in prior year(p.68)
- • High dependency on contract manufacturing and loan licence relationships(p.141)
- • Low capacity utilization in recent period(p.161)
- • Geographic concentration of revenue in Gujarat state(p.147)
- • Newly formed subsidiary with no commercial production(p.141)
- • Limited own brand presence relative to contract manufacturing(p.146)
- • High debt burden relative to equity(p.234)
- • Weak current ratio indicating liquidity pressure(p.239)
- • Minimal cash reserves(p.206)
- • Significant dependence on related party transactions and unsecured loans(p.219)
- • Board changes and uncertainty in governance during pre-IPO period(p.186)
- • High concentration of revenue dependence on top 10 customers (90.57%-94.01%)(p.288)
- • High concentration of raw material sourcing from top 10 suppliers (52.21%-61.41%)(p.288)
- • Elevated debt-to-equity ratio of 1.17 times indicating financial leverage(p.282)
- • Pending GST and income tax notices with unfinalised amounts under dispute(p.290)
- • Newly formed subsidiaries not yet in commercial production, adding execution risk(p.281)
Opportunities
- • Indian pharmaceutical industry expected to reach ~US$ 130 billion by 2030(p.21)
- • Indian pharma sector expected to grow at CAGR of 22.4% in near future(p.21)
- • Direct export operations recently started capturing international market demand(p.20)
- • Planned investment in subsidiary SOTAC Healthcare for beta-lactam manufacturing expansion(p.51)
- • New venture SOTAC Lifescience for nutraceuticals and food products on contract-manufacturing basis(p.19)
- • Permission to manufacture and sell 34 products in offshore markets under existing licenses(p.20)
- • Capacity to manufacture 56 products under own brands for domestic market(p.20)
- • Planned investment in subsidiary to leverage consolidated operations(p.105)
- • Infrastructure expansion to increase manufacturing capacity(p.105)
- • Significant working capital requirements indicating potential for revenue growth(p.102)
- • Strategic use of IPO proceeds for business expansion and corporate purposes(p.102)
- • Expand direct export operations beyond USA(p.149)
- • Grow own brand portfolio in domestic and offshore markets(p.142)
- • Capture growing pharmaceutical market demand(p.135)
- • Leverage favorable PLI scheme and government support(p.133)
- • Expand product portfolio across therapeutic segments(p.149)
- • Build presence in growing healthcare insurance market(p.137)
- • Expansion through subsidiary acquisitions(p.209)
- • Growth in export markets(p.230)
- • Capacity building through government support schemes(p.221)
- • Access to capital markets for growth financing(p.201)
- • Expansion of manufacturing capabilities and entry into nutraceuticals and food products(p.281)
- • Direct export operations growth starting 2022 with offshore presence in USA(p.282)
- • Revenue growth from 68.4% and 51.86% CAGR demonstrates market demand capture(p.285)
- • Established brand portfolio with significant manufacturing licenses (329 and 45 products under different licenses)(p.282)
- • Growing pharma market driven by healthcare spending and demand for quality generics(p.281)
Threats
- • High dependence on geographic region of Gujarat for 96-98% of domestic revenue(p.47)
- • Intense competition from organized and local pharma players with pricing pressure(p.49)
- • Raw material price fluctuations affecting margins and profitability(p.48)
- • Regulatory changes and compliance requirements affecting pharmaceutical manufacturing(p.52)
- • Foreign currency exchange rate fluctuations affecting export operations(p.53)
- • Dependency on third-party transportation providers without formal long-term contracts(p.51)
- • COVID-19 pandemic and future pandemics causing business disruption and economic uncertainty(p.56)
- • Payment delays and defaults from customers affecting working capital(p.50)
- • Global economic slowdown and pharmaceutical sector downturn affecting demand(p.49)
- • COVID-19 pandemic risk and potential loss of essential business status(p.57)
- • Supply chain disruption from supplier COVID-19 impact(p.57)
- • Interest rate fluctuation risk affecting borrowing costs(p.57)
- • Government taxation and regulatory changes impacting profitability(p.58)
- • Geopolitical instability and terrorism risks affecting market conditions(p.58)
- • Market price volatility and trading liquidity risk for IPO shares(p.57)
- • Competition from organized and unorganized pharmaceutical players(p.159)
- • Fluctuation in raw material prices(p.155)
- • Changes in government policies and drug pricing controls(p.155)
- • Global economic slowdown and weakening currency conditions(p.124)
- • Dependence on complex regulatory approvals and compliance(p.172)
- • Loss of key customer relationships(p.159)
- • Regulatory compliance risks including pending tax notices(p.215)
- • Professional tax litigation exposure(p.215)
- • Contingent tax liabilities and indirect tax exposure(p.215)
- • Industry cyclicality and competition in pharmaceutical sector(p.209)
- • Subsidiary company operating at losses(p.239)
- • Intense competition from existing and potential pharma contract manufacturers(p.288)
- • Dependence on regulatory compliance and government approvals for pharmaceutical operations(p.283)
- • Exposure to raw material price volatility and supply chain disruption risks(p.283)
- • Environmental compliance risks and potential uninsured losses in manufacturing operations(p.283)
- • COVID-19 pandemic impact on operations, supply chains and demand(p.283)
- • Macroeconomic risks including inflation, global economic uncertainty and political instability(p.283)
- • Technology obsolescence and need to adapt to changing industry requirements(p.283)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Sharadkumar Dashrathbhai Patel | Promoter | 17.78% | 12.95% |
| Mr. Dineshkumar Babulal Gelot | Promoter | 17.78% | 12.95% |
| Mr. Vishalkumar Devrajbhai Patel | Promoter | 17.78% | 12.95% |
| Mr. Chetankumar Bachubhai Patel | Promoter | 13.28% | 9.68% |
| Mrs. Kiran Baldevbhai Jotania | Promoter | 18.00% | 13.11% |
| Mrs. Pinki Sharadkumar Patel | Promoter Group | 0.22% | 0.16% |
| Mrs. Sarojben Dineshkumar Gelot | Promoter Group | 0.22% | 0.16% |
| Mrs. Vasantkumar Devrajbhai Patel | Promoter Group | 0.22% | 0.16% |
| Mrs. Dhara Chetankumar Patel | Promoter Group | 0.22% | 0.16% |
| Mr. Shaileshkumar Vishnuprasad Patel | Promoter Group | 10.00% | 7.29% |
| Mr. Mitul Shaileshkumar Patel | Promoter Group | 4.50% | 3.28% |
| Mr. Sharadkumar Dashrathbhai Patel | Promoter | — | — |
| Mr. Dineshkumar Babulal Gelot | Promoter | — | — |
| Mr. Vishalkumar Devrajbhai Patel | Promoter | — | — |
| Mr. Chetankumar Bachubhai Patel | Promoter | — | — |
| Mrs. Kiranben Baldevbhai Jotania | Promoter Group | — | — |
| Mr. Sharadkumar Dashrathbhai Patel | Promoter | 17.78% | — |
| Mr. Dineshkumar Babulal Gelot | Promoter | 17.78% | — |
| Mr. Chetankumar Bachubhai Patel | Promoter | 13.28% | — |
| Mr. Vishalkumar Devrajbhai Patel | Promoter | 17.78% | — |
| Mrs. Kiran Baldevbhai Jotania | Promoter | 18.00% | — |
| Sharadkumar Dasharathbhai Patel | Promoter | 17.78% | — |
| Dineshkumar Babulal Gelot | Promoter | 17.78% | — |
| Vishalkumar Devrajbhai Patel | Promoter | 17.78% | — |
| Chetankumar Bachubhai Patel | Promoter | 13.28% | — |
| Kiranben Baldevbhai Jotania | Promoter | 18.00% | — |
| Shailesh V Patel | Promoter | 10.00% | — |
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.
Sotac Pharmaceuticals IPO FAQs
What is the lot size of Sotac Pharmaceuticals IPO?
The minimum lot size of Sotac Pharmaceuticals IPO is 1,200 shares. One lot costs ₹1,33,200 at the cut-off price.
When does Sotac Pharmaceuticals IPO open and close?
Sotac Pharmaceuticals IPO opened for subscription on 29 Mar 2023 and closed on 03 Apr 2023.
What is the listing date of Sotac Pharmaceuticals IPO?
Sotac Pharmaceuticals IPO listed on 13 Apr 2023.