Arvee Laboratories (India) Limited IPO Review

Arvee Laboratories (India) Limited IPO Review

Arvee Laboratories (India) Limited is engaged in trading in speciality chemicals by getting manufacturing done on job work basis. It is mainly Ahmadabad, Gujarat based company. This company has plans to begin manufacturing of speciality chemicals in near future. They are getting listed in the SME arm of National Stock Exchange through their public issue. Hence, this article will go through the draft red herring prospectus and will check the IPO date and price to post our Arvee Laboratories (India) Limited IPO Review.

About Arvee Laboratories (India) Limited IPO :

  • IPO Opens on – February 9, 2018.
  • IPO Closes on – February 14, 2018.
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. 61 Per Equity Share.
  • Issue Type – Fixed Price Issue IPO.
  • Retail Allocation – 50%
  • Market Lot – 2000 Shares.
  • Minimum Order Quantity – 2000 Shares.
  • Issue Size – 1,460,000 Equity Shares of Rs 10 aggregating up to Rs 8.91 Cr.
  • Listing Exchange – NSE SME Exchange.
  • Draft Prospectus – Click Here.

Objectives of the issue:

  • Re-payment of Unsecured Loans of Promoters.
  • Issue Expenses.

About The Company–

  • Arvee Laboratories (India) Limited is incorporated in 2012.
  • This company is mainly engaged in manufacturing of Polymer Modifiers, Contrast Media Intermediates and Drug Intermediates. Company caters to the demand of both domestic as well as international markets.
  • Arvee Labs bought land, building and machineries from Skylink Chemicals Private Limited who was engaged in manufacturing of specialty chemicals.
  • This company has set one mission and that is of evolving with times through processes, people and practices.
  • Arvee Laboratories (India) Limited is currently negotiating with IDBI Bank Limited to take over the business of Skylead Chemicals Limited which has been declared as sick by BIFR.
  • This company started its operations in chemical industry by providing the best and innovative quality chemical products.

Arvee Laboratories (India) Limited

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Promoters of the company :

  • Mr. Shalin Sudhakarbhai Patel, aged 42 Years, is the Promoter and Managing Director of this company.
  • Mr. Shalin Bharat Chokshi, aged 32 Years, is the Promoter and Whole Time Director of this company.

Company Financials:

Arvee Laboratories (India) Limited IPO

Arvee Laboratories (India) Limited IPO Review:

Once we checked the DRHP we could not find the financial data at all impressive. The company had posted minor profits in the financial years 2013 and 2014 and then a huge loss on the financial year 2015. Then again the company has posted rising profitability on FY 2016 and FY 2017. The issue price of Rs. 61 per equity share looks on the expensive side with an EPS of 3.83, that too is irregular. Hence our Arvee Laboratories (India) Limited IPO Review holds a NEGATIVE to NEUTRAL view on this public issue. Apply only if you can take a moderate risk and have extra cash.

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