Par Drugs and Chemicals Limited is engaged in the business of manufacturing and developing active pharma ingredients (API) for the Indian and international markets. This is mainly a Gujarat based company. The article is about Par Drugs and Chemicals IPO Review and issues details.
Par Drugs and Chemicals IPO Issue Details :
- IPO Opens on – May 3, 2019.
- IPO Closes on – May 8, 2019.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 61 – Rs. 65 Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Market Lot – 2000 Shares.
- Minimum Order Quantity – 2000 Shares.
- Issue Size – 1,700,000 Equity Shares of Rs. 10 aggregating up to Rs. 8.53 Cr.
- Fresh Issue – 1,672,000 Equity Shares of Rs. 10 aggregating up to Rs [.] Cr.
- Listing Exchange – NSE SME Exchange.
- Draft Prospectus – Click Here
Objectives of the issue of the Company :
- Funding the working capital requirements of Par Drugs and Chemicals Limited.
- General corporate purposes of this company.
About The Company –
- Par Drugs and Chemicals Limited was incorporated in 1999.
- APIs are used as the main ingredient in making tablets, capsules, and other finished dosages of this company.
- Par Drugs and Chemicals Limited also produces various antacid molecules.
- This company has two manufacturing facilities located at Ankleshwar and Bhavnagar in Gujarat.
- Par Drugs and Chemicals Limited has a total of 6 Fine Chemical and 12 API products which are available in the market of 17 countries, including India.
- Some of the customers of this company are Dabur India Ltd, Meyer Organics Pvt. Ltd, Cadila Healthcare Ltd., Cipla Ltd, and Pfizer Ltd.
- For fiscal 2018, the international and domestic operations recorded 86.88% and 13.12%, respectively from the total sales of Par Drugs and Chemicals Limited.
- This company has a testing laboratory to maintain quality standards for finished products and raw materials.
- Par Drugs and Chemicals Limited also performs drying operations of the products provided by customers in the liquid form and converts them into powders.
- This company supplies its products to approximately 16 countries, including both direct and indirect exports.
Some Products of this company :
- Dried Aluminium Hydroxide Gel: Dried Aluminium Hydroxide Gel is mainly used as an active medicament in an Antacid Formulations. This is also used in the manufacturing of lake colors, Inks, catalysts carrier, etc.
- Almagate BP: Almagate BP is mainly used as an Antacid Raw material in specific antacid formulations.
- Amorphous Aluminium Hydroxide Dried Gel: Amorphous Aluminium Hydroxide Dried Gel is Mainly used as an active medicament in an Antacid Formulations. This is also used in the manufacturing of lake colors, Inks, catalysts carrier, etc.
- Aluminium Magnesium Silicate: Aluminium Magnesium Silicate is mainly used as an Antacid Raw material in specific antacid formulations, ceramics, suspending agent, thickening agent, etc.
- Colloidal Silicon Dioxide: Colloidal Silicon Dioxide has many uses in tablet-making: some include as an anti-caking agent, adsorbent, disintegrate or glidant to allow powder to flow freely when tablets are processed.
LOCATION :
Registered Office :
805, Dwarkesh complex,
RC Dutt Road,
Vadodara – 390001,
Gujarat, India.
Phone : +91 – 265 – 234 2018,233 2018
Corporate Office :
302, Anmol Plaza.
Waghawadi Road,
Bhavnagar – 364001.
Gujarat, India.
Phone : +91 – 278 – 243 5400
Unit – I :
333/1, GIDC, Estate.
Phase-II, Chitra,
Bhavnagar – 364004.
Gujarat, India.
Phone : +91 – 278 – 244 6342
Unit – II :
5901/1, GIDC Industrial Estate, Ankleshwer Bharuch – 392001 Gujarat, India.
The promoter of Par Drugs and Chemicals Limited :
- Falgun Vallabhbhai Savani, aged 44 years, is the Promoter, Chairman and Managing Director of this Company.
- Jignesh Vallabhbhai Savani, aged 41 years, is Promoter, CEO and Executive Director of this Company.
The Board of Directors of this company :
- Falgun Vallabhbhai Savani, aged 44 years, is the Promoter, Chairman and Managing Director of this Company.
- Jignesh Vallabhbhai Savani, aged 41 years, is Promoter, CEO and Executive Director of this Company
- Ghanshayambhai Bhagvanbhai Savani, aged 48 years, is a Whole Time Director of Company.
- Shilpa Falgunbhai Savani, aged 39 years, is a Non- Executive Director of this Company.
- Nayna Jignesh Savani, aged 40 years, is a Non- Executive Director of this Company.
- Kajal Chintanbhai Vaghani, aged 39 years, is an Independent Director of this Company.
- Krishna Mitulbhai Shah, aged 39 years, is an Independent Director of this Company.
- Pravin Manjibhai Bhayani, aged 48 years, is an Independent Director of this Company.
Competitive Strengths of Par Drugs and Chemicals Limited :
- The main competitive strength of Par Drugs and Chemicals Limited is their wide product range.
- Global Presence of this company.
- Another strength is their Experienced Promoters of Par Drugs and Chemicals Limited.
- Robust chemistry capabilities of this company.
- Diversified customer base of Par Drugs and Chemicals Limited.
- Established sales and distribution network in Gujarat.
- Established track record of delivering growth.
Business strategies of this company :
- Expand the product portfolio.
- Exploring new geographical area.
- Leveraging the market skills and relationship.
- Augment their working capital base in order to better utilize their installed capacities of this company.
- Continuing innovation, technology upgrade and cost improvements.
Company Financials :
Par Drugs and Chemicals IPO Review:
The statement reflects the profit and loss amount of the company. It is a mini statement, derived from the DRHP (draft red herring prospectus). The company had received the highest profit in FY17 among the previous three years. Now, have a look at the fundamental ratios of the company, this is an important concept to analyze the IPO here. In FY18, basic and diluted EPS (earnings per share) was 5.54. P/E (price to earnings ratio) of the company is not present here in the company prospectus. RoNW (return on net worth) and NAV/Share were 10.00 and 55.36 respectively. Therefore, Par Drugs and Chemicals IPO Review carries a NEUTRAL view. Investors can think for long term investment for the IPO.