Sudarshan Pharma IPO subscription is opening on March 9, 2023. According to the prospectus, the IPO consists of a fresh issue of 6,862,400 shares of ₹10 face value aggregating up to ₹50.10 Cr. There is no offer for sales in the IPO issue. The Equity Shares have a face value of Rs 10 each. The retail allocation is not less than 35% of the total size.
Sudarshan Pharma IPO – The Company Business Description
Sudarshan Pharma is engaged in the business of manufacturing Specialty Chemicals, Intermediates & Active Pharmaceuticals Ingredients. The company outsourced its manufacturing facility, dealing in imports and Exports, indenting and Supply in Specialty chemicals, API & its intermediate. The products of the company have wide applications such as in the pharma, paint, food, and adhesive Industry. Usually, the company enters into contract manufacturing for a period 1 of to 3 years.
- Currently, the company has Contract Manufacturing Agreements with four pharmaceutical companies.
- The company has FDA and WHO-approved plants to supply pharma formulations and more than 100 generic pharma products.
- Sudarshan Pharma exports its products to countries such as Uzbekistan, Bangladesh, Taiwan, Sultanate of Oman, (Muscat) Dubai, (UAE) & UK.
- The company is also planning to extend its business into regions like South East Asia, the Middle East & North Africa (MENA Region).
- Promoters have more than 25 years have been prominent in growing the Pharma & Bulk drug
Sudarshan Pharma Founders and Leadership team
Mr. Hemal V. Mehta and Mr. Sachin V. Mehta are the promoters of the company. Promoters together hold 74,97,628 Equity Shares having a face value of Rs. 10 per share. This represents 78.53 % of the pre-issue Paid up Capital of our Company.
Mr. Hemal V. Mehta is the Managing Director and Mr. Sachin V. Mehta is the Joint Managing Director of the company.
Sudarshan Pharma Revenue and Profit
As per the recent financial statement on the company website, the total income of the company increased from INR 14800.04 lakh in 2020 to INR 19361.77 lakhs in the fiscal year 2021. The revenue for FY 2022 or Fy 2023 is not available on the website. The company has declared total revenue of INR 15021.02 lakh till Sept 2021.
Sudarshan Pharma IPO Details: Financial Snapshot
| All amounts in INR Lakhs | ||||
| (Year ended March 31) | 2019 | 2020 | 2021 | SEP-21 |
| Total Revenue | 14,001.96 | 14800.04 | 14800.04 | 15021.02 |
| EBITDA | 517 | 480 | 754 | 606 |
| Profit After Tax | 234.79 | 127.51 | 267.26 | 301.08 |
| Fixed Assets | 777.26 | 563.53 | 621.29 | 685.30 |
| Net Cash from Operating Activities | (101.37) | 5.15 | 2.68 | – |
| Return on Equity (%) | 12.53 | 13.36 | 27.9 | 31.54 |
| ROCE (%) | 21.64 | 15.96 | 20.3 | 17.48 |
| Debt-to-Equity Ratio | 0.24 | 1.85 | 2.14 | 1.59 |
Objective Behind the Sudarshan Pharma IPO
- Out of the net proceeds of this IPO, the company is planning to spend INR 1250 lakhs to set up a dedicated manufacturing facility for Pharmaceutical Business.
- The company would utilize INR 450 lakhs for the Distribution and Warehousing Centres & Purchase of the Corporate Office.
- The rest amount will be utilized to meet the Additional Working Capital and General Corporate Expenses
Sudarshan Pharma IPO Review: Do you invest?
- Sudarshan Pharma registered a flat revenue growth over the last three fiscal years. Again the financial statement for FY2022 and FY2023 is not available to analyze.
- Net cash flow from operating activities is negative or negligible as per the data available.
- Profit after tax also remains flat for the period mentioned.
- The debt-to-equity ratio is 1.6% which is quite high for the company.
- Global growth is forecast slow during 2023 and 2024. China opening up may be helpful to this industry.
- Looking at the financials, I would prefer to avoid this SME IPO at the moment.
Sudarshan Pharma IPO Details
| Sudarshan Pharma IPO Details | Sudarshan Pharma IPO Subscription Date, Price and other details |
| Sudarshan Pharma IPO subscription Date | Mar 9, 2023 to Mar 14, 2023 |
| IPO Price | ₹71 to ₹73 per share |
| IPO Allotment date | Mar 17, 2023 |
| Refunds Initiation date | Mar 20, 2023 |
| Credit of Shares to Demat Account | Mar 21, 2023 |
| IPO Listing Date | Mar 22, 2023 |
| Offer for Sale | Nil |
| IPO Issue Size (Fresh Issue) | 6,862,400 shares of ₹10 (aggregating up to ₹50.10 Cr) |
| Minimum bid (lot size) For retail investor | 1 lot of 1600 equity shares investment of ₹116,800 |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| Minimum bid (lot size) HNI investor | 2 lot of 1600 equity shares (3200) investment of ₹233,600 |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
| Face Value | INR 10 per share |
| Listing on | BSE SME |
| Promoters | Mr. Hemal V. Mehta and Mr. Sachin V. Mehta are the promoters of the company |
Sudarshan Pharma SME IPO: Lead Managers and Contact
| Contact Details | Sudarshan Pharma SME IPO Lead Managers |
| 301, 3rd Floor, Aura Biplex, Above Kalyan Jewellers, S V Road, Borivali (West), Mumbai – 400 092, Maharashtra, India; Tel. No.: +91 22 242221111; Email: compliance@sudarshanpharma.com / compliance.spil@gmail.com; Website: www.sudarshanpharma.com; | 1. FIRST OVERSEAS CAPITAL LIMITED |
Sudarshan Pharma SME IPO Allotment Status
Sudarshan Pharma SME IPO Allotment status will be available on Karvy’s website. To know your allotment status, get ready with your PAN number and click on this link. You may also reach out to Tel Ph- 1-800-3454001/ +91 40 6716 2222, Fax No.: +91 40 2343 1551, E-mail: einward.ris@karvy.com
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