Par Drugs and Chemicals IPO Review

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.