Hello everyone, this article provides a detailed overview of the upcoming Anlon Healthcare IPO, which is set to open on August 26th. This mainboard IPO requires an application amount of ₹15,000. We will delve into the company’s business model, financial health, important events, and other essential details to help you prepare your strategy for this public offering.
Anlon Healthcare IPO Overview
Anlon Healthcare IPO is a mainboard IPO opening on August 26th. Investors will have three days to apply for this IPO: August 26th, August 28th, and August 29th. The company’s face value is ₹10 per share.
Important Dates for Anlon Healthcare IPO
Mark your calendars for these crucial dates related to the Anlon Healthcare IPO:
- Opening Date: August 26th
- Closing Date: August 29th
- Allotment Finalization: September 1st
- Refund Initiation/Demat Credit: September 2nd
- Listing Date (BSE & NSE): September 3rd
Anlon Healthcare IPO Price Band & Lot Size
The company has set its upper price band at ₹91 per equity share. Applications should be made at this cut-off price. To secure an allotment, investors will need to apply for 164 equity shares per lot. The amount required for a single lot application is ₹14,924. For those looking at higher categories, the requirement for a Small HNI category application is ₹28,936, while for a Big HNI category, it is ₹14,832.
Issue Size & Listing
The Anlon Healthcare IPO is a fresh issue, meaning all funds raised from the market will go directly to the company. The total issue size stands at ₹101 Crores, which is considered a relatively small issue. This size suggests that the chances of allotment might be quite low due to high potential oversubscription. The company will be listed on both the BSE and NSE exchanges.
IPO Reservation for Different Categories
The shares in the Anlon Healthcare IPO will be distributed among different investor categories as follows:
- Qualified Institutional Buyers (QIBs): 75% of the total shares
- Retail Investors: 10% of the total shares
- High Net Worth Individuals (HNIs): 15% of the total shares
With only 10% of the shares allocated to retail investors, approximately ₹12 Crores worth of shares will be available for this category. This limited allocation is likely to lead to a significantly higher subscription rate.
About Anlon Healthcare Limited
Established in 2013, Anlon Healthcare Limited is a chemical manufacturing company primarily engaged in the manufacturing of pharmaceutical intermediates and pharmaceutical ingredients. The company specializes in producing high-purity pharmaceutical intermediates and Active Pharmaceutical Ingredients (APIs). Its products find applications in medicines, personal care items, and veterinary products. Anlon Healthcare adheres to various pharmaceutical standards, including USP, JP, IP, BP, and EP, ensuring quality in its manufacturing processes.
Competitive Strengths of Anlon Healthcare
Anlon Healthcare possesses several competitive strengths that contribute to its market position:
- A strong product portfolio.
- Scalable operations.
- Strong promoters and an experienced management team.
- High entry and exit barriers in its sector.
- Robust in-house testing and quality control mechanisms.
- A strong focus on quality, environmental health, and safety standards.
Financial Health of Anlon Healthcare (FY23 Data)
Analyzing the financial data provided up to FY23, Anlon Healthcare has shown dynamic performance:
- Assets: Increased from ₹111 Crores to ₹128 Crores, and then to ₹181 Crores.
- Income: Started at ₹113 Crores, then dropped to ₹1,667 Crores (as per provided data), and later increased to ₹120 Crores.
- Profit: Grew consistently from ₹6 Crores to ₹10 Crores, and further to ₹20 Crores.
- EBITDA: Increased from ₹12 Crores to ₹16 Crores, reaching ₹32 Crores.
- Net Worth: Saw substantial growth from ₹7 Crores to ₹21 Crores, and significantly to ₹80 Crores.
- Reserves & Surplus: Improved from a negative balance to ₹5 Crores, and then to ₹40 Crores.
- Total Borrowing: Fluctuated from ₹66 Crores to ₹75 Crores, and then reduced to ₹58 Crores. The debt-to-equity ratio is 0.73, indicating a controlled debt level.
Key Financial Ratios
The company’s fundamental ratios highlight its financial performance:
- Return on Equity (ROE): 40%
- Return on Capital Employed (ROCE): 22%
- Debt-to-Equity: 0.73
- Return on Net Worth: 25.51%
- Profit After Tax (PAT) Margin: 17.06%
- EBITDA Margin: 26.88%
- Price to Book Value: 4.51
- Price-to-Earnings (PE) Ratio: Approximately 18, suggesting an attractive valuation.
Overall, the company’s fundamentals appear sound and promising.
Objectives of the Anlon Healthcare IPO
Anlon Healthcare plans to utilize the funds raised from the IPO for the following key objectives:
- Working Capital Requirements: Approximately ₹30 Crores will be used to fulfill existing working capital needs.
- Debt Repayment/Prepayment: ₹5 Crores is allocated for the repayment or prepayment of certain borrowings.
- Further Working Capital: An additional ₹43 Crores will be deployed to meet future working capital requirements.
Anlon Healthcare IPO Grey Market Premium (GMP)
The current Grey Market Premium (GMP) for Anlon Healthcare IPO is ₹5. Based on the upper price band of ₹91, this indicates an estimated listing price of ₹96 per share. This translates to an expected listing gain of approximately 1.5%.
Conclusion
The Anlon Healthcare IPO presents an opportunity in the pharmaceutical sector. Given the small issue size and the initial grey market premium, it will be crucial to observe the market’s response on the first day of subscription. We will provide an updated analysis on whether to apply or avoid this IPO tomorrow evening. Stay tuned for further updates to make an informed decision. For any further questions or doubts, feel free to comment below.
