Vaishali Pharma Limited, previously known as Vaishali Pharma Private Limited is essentially a Mumbai headquartered pharmaceutical company that has business in more than 10 countries across the world. Incorporated in 2008, the company focuses on manufacture and trading of API, new formulations, veterinary products, surgical implements, herbal and nutritional products. The company is shortly coming up with an IPO. Vaishali Pharma IPO review finds the details of the IPO from the DRHP (draft red herring prospectus) submitted to NSE.
About The Issue –
- Issue opens on – 07 August 2017
- Issue closes on – 10 August 2017
- Issue type – Book built issue IPO
- Issue price – price band of Rs 71 to Rs 72 per equity share
- Lot size – 1600 equity shares or in multiples thereof
- Face value – Rs 10 per equity share
- Issue size – 1,976,000 nos. of equity shares aggregating up to 14.93 crores
- Listing Exchange – NSE SME exchange
- Issue objectives – The proceeds from the issue will be used to fulfill; a) working capital requirements and b) to fulfill general corporate requirements.
About the company – For the last few years the company is doing good business in India and abroad. In the domestic market, the company mostly focuses on trading of APIs. But in the majority of markets across the world, it exports APIs, formulations, surgical implements, herbal and nutritional products. Vaishali Pharma has an overseas office in Vietnam. The company runs business in countries like Russia, Sri Lanka, DR Congo, Tajikistan, Myanmar, Bangladesh, Cameroon, Kazakhstan, Burkina -Faso, Jordan, Nicaragua, Pakistan, Senegal, Ukraine, Cambodia, Vietnam, Yemen, Turkey, Zimbabwe, Congo, Ethiopia, Armenia, Tanzania, Costa Rica, Nigeria and Guinea-Bissau.
Company Financials – Vaishali Pharma IPO review finds the financials condition from the DRHP is as follows. The company’s asset has been following a steady growth. The revenue generation also increased. But PAT has not been consistent.
Conclusion – Vaishali Pharma IPO review finds that the company has not delivered as per expectation. Therefore our review has NEUTRAL views on this IPO.
Disclaimer – Views expressed in this review is an educated guess made on the basis of available data from open source expressed for the purpose of knowledge sharing. By no means, it should be taken as an investment advice or recommendation. Investor/ trader should invest money at their own risk.
Partha, an engineer by education, is theoratically actively following the stock and commodity markets since 1990. He is an active trader since 2003. He has received formal education in future and options and quantum analysis. He is presently working on research oriented projects using Python and data analytics.