Deccan Health Care IPO Review (Date, Price)

Deccan Health Care IPO Review

Deccan Health Care is basically engaged in developing, manufacturing and marketing of healthcare products. It is a Hyderabad based company. This company offers nutraceutical, cosmeceutical and Ayurveda products. Deccan Health Care Limited service provider of Lycodecc orthopedic implants, Lignoflax and Lignoflax pharmaceutical medicines in Hyderabad, Telangana. Before step into the main discussion Deccan Health Care IPO Review, have a quick look at the issue details of the IPO.

Deccan Health Care IPO Review Issue Details :

  • IPO Opens on – December 18, 2018.
  • IPO Closes on – December 20, 2018.
  • Face Value – Rs 10 Per Equity Share.
  • Issue Price – Rs 95 – Rs 100 Per Equity Share.
  • Issue Type – Book Built Issue IPO.
  • Market Lot – 1200 shares.
  • Minimum Order Quantity – 1200 shares.
  • Issue Size – 4,121,000 Equity Shares of Rs 10 aggregating up to Rs 42.12 Cr.
  • Listing Exchange – BSE SME Exchange.
  • Draft Prospectus – Download.

Objectives of the issue of the Company :

  • The main object of the issue is Repayment or Prepayment of certain Secured Borrowings availed by this company.
  • Deccan Health Care Limited is the purchase of plant and machinery and related civil work.
  • Working Capital Requirements for this company.
  • Deccan Health Care Limited’s General Corporate Purposes.

About The Company –

  • Deccan Health Care Limited is incorporated in 1996.
  • The product range of this company which includes more than 1,500 products used for various purposes such as hair care, skin care, heart care, immunity building, etc.
  • This company also offers a long-chain omega-3 fatty acid, joint health nutrients, diacerein, antioxidants, immune enhancing components, skin aging products, instant energy drinks, and calcium supplements; and a formula for males.
  • Deccan Health Care Limited supply their products in various forms such as tablets, capsules, gel, liquids, ointments, powder, pastes, etc.
  • This company has more than 140 distributors and around 6100 marketing agents.
  • Deccan Health Care Limited utilizes its industry leading R&D and technical capabilities to produce superior formulations that optimize the nutritional value and performance for its customers.

Deccan Health Care Limited

Location :

247, 2nd floor, Dwarakapuri Colony,
Punjagutta, Hyderabad,
Telangana – 500082, India.
Tel : +91 40 40144508.

Email : [email protected]

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Website : www.deccanhealthcare.co.in

The promoter of Deccan Health Care Limited :

  • Minto Purshotam Gupta, aged 58 years, is the Promoter, Chairman and Managing Director of this Company.
  • Hitesh Patel, aged 42 years, is Promoter and Non-Executive Director of this Company.

The Board of Directors of this company :

  • Minto Purshotam Gupta, aged 58 years, is the Promoter, Chairman and Managing Director of this Company.
  • Hitesh Patel, aged 42 years, is Promoter and Non-Executive Director of this Company.
  • Meenakshi Gupta, aged 57 years, is Whole Time Director of this Company.
  • Rani Venkata Satya Umamaheswara Rao, aged 52 years, is Additional Director of this Company.
  • Yezdi Jal Batliwala, aged 74 years, is an Independent Director of this Company.
  • Narendra Singh, aged 64 years, is an Additional Independent Director of this Company.
  • Savita Bhutani, aged 47 years, is an Additional Independent Director of this Company.

SWOT Analysis for this company :

  • Strengths –

  1. In-depth knowledge of promoter of industry and their experience.
  2. Track record of this company for 20 years indicates its ability to survive business and economic cycles.
  3. Diverse customer base, varied product range, and widespread reach.
  • Weakness –

  1. Intense competition from several unorganized players.
  2. Lack of awareness among consumers.
  • Opportunity –

  1. The growth of the middle class has resulted in a fast-changing lifestyle. This has resulted in the creation of huge markets for lifestyle drugs, which has a very low contribution in the Indian Market.
  2. Capitalize unutilized capacity.
  3. Exploring E-commerce.
  • Threats –

  1. Change in regulatory norms in our country or exporting countries.
  2. Malpractices by some players in the industry affect the overall performance of emerging companies.

Competitive Strengths of Deccan Health Care Limited :

  • The main strength of Deccan Health Care Limited is Experienced core of Management team.
  • This company’s financial performance and tax incentives are another strengths.
  • One of the competitive strengths of Deccan Health Care Limited is multi product capability and proven Research and Development capabilities.
  • Product Range is another strength of this company.
  • Quality assurance is the most effective strength of Deccan Health Care Limited.
  • One of the competitive strengths of this company is widespread domestic presence and distribution network.

Business Strategies for this company :

  • The most important business strategies of Deccan Health Care Limited creates a global presence.
  • Make optimum utilization of this company’s production capacity is another strategies.
  • One of the strategies of Deccan Health Care Limited is increasing sales through e-commerce medium.
  • Investment in R&D driving sustainable growth of this company.
  • The business strategies of Deccan Health Care Limited is widening the product range of this company and capitalize on emerging nutraceutical sector.
  • One of the strategies of this company is improving operational efficiencies.

Company Financials :

This is one of the most important parts in this article Deccan Health Care IPO Review.

Deccan Health Care Limited IPO

Deccan Health Care IPO Review:

The attachment is based on the company’s profit-loss statement. According to the collected data, Deccan Health Care rises to high peaks at the end of the 2017-18 financial year with Rs. 1,268.78 lakhs PAT. The company is growing up gradually. Now, let’s go through the DRHP (draft red herring prospectus) of the company for fundamental ratios. As per the 2018 FY data, Earnings Per Share (EPS) is 9.75. The company has not revealed the P/E ratio. Return on Net Worth (RoNW) is at the level of 34.78% and NAV/Share is 28.84. Based on our analysis, the Deccan Health Care IPO Review carries a NEUTRAL view. Investors may apply for it.

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