Amkay Products Limited’s IPO consists of a fresh issue of 22,92,000 lakh shares worth INR 12.61 crores. The company aims to invest in machinery, support working capital, and fulfill general corporate purposes.
Amkay Products Limited IPO – Important Dates
| Amkay Products IPO Date | April 30, 2024 to May 3, 2024 |
| Amkay Products IPO Listing Date | May 8, 2024 |
| Amkay Products IPO Price | INR 52-55 per share |
| Amkay Products IPO Lot Size | 2000 shares |
| Amkay Products IPO Total Issue Size | INR 12.61 crores |
| Amkay Products IPO Basis of Allotment | May 6, 2024 |
| Amkay Products IPO Initiation of Refunds | May 7, 2024 |
| Amkay Products IPO Credit of Shares to Demat | May 7, 2024 |
| Amkay Products IPO Issue Type | Book Built Issue IPO |
| Amkay Products IPO Listing At | BSE SME |
Amkay Products IPO – Company Profile
Amkay Products Limited manufactures and distributes medical devices, disposables, and healthcare products nationwide, including face masks, nebulizers, and branded items like diapers and suction machines.
They started in 2008 in Mumbai with one product, expanding gradually to larger units. In 2012, they acquired a 20,000 sq. ft. manufacturing unit, diversifying their portfolio. Continuing growth, they acquired more units for expansion.
The company offers over 30 medical products, including respiratory devices, surgical disposables, and home healthcare items. With ISO 9001:2015 accreditation, their 26,000 sq. ft. facility ensures smooth manufacturing and testing processes.
Amkay Products Limited IPO Review
Amkay Products’ financial analysis reveals a mixed performance. Revenue initially increased but declined later. Profitability and equity improved, yet RoNW decreased, indicating mixed performance despite potential growth.
- Revenue Trend: The revenue decreased from ₹3,650.37 lakhs in March 2022 to ₹2,786.42 lakhs in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR2,274.62 lakhs, falling short of last year’s benchmark.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has significantly increased from ₹146.71 lakhs in March 2022 to ₹215.34 lakhs by December 2023. This improvement in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS have risen from ₹2.31 in March 2022 to ₹3.38 by December 2023, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has declined from 23.64% to 21.82%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth.
Amkay Products Ltd IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 3,650.37 | 2,786.42 | 2,274.62 |
| Equity (₹ in lakhs) | 620.60 | 771.62 | 986.96 |
| Expenses (₹ in lakhs) | 3,475.93 | 2,591.32 | 2,109.60 |
| Profit and Loss After Tax (₹ in lakhs) | 146.71 | 151.02 | 215.34 |
| Diluted EPS (₹) | 2.31 | 2.37 | 3.38 |
| Return on Net Worth (%) | 23.64 | 19.57 | 21.82 |
| NAV per Equity Share (₹) | 9.75 | 12.13 | 15.51 |
| Total Assets (in lakhs) | 1,580.64 | 1,563.77 | 1,887.52 |
| Total Liabilities (in lakhs) | 960.04 | 792.16 | 900.56 |
Amkay Products Limited IPO Peer Comparison
Amkay Products Limited reported varying financial metrics. Hemant Surgical Industries Limited exhibited notable growth, while QMS Medical Allied Services Limited showed strong profitability despite lower revenue.
| Company | CMP (₹) | Face Value (₹) | P/E (₹) | EPS (₹) | RoNW (%) | Book value per share (₹) | Total Income (₹) |
| Amkay Products Limited | NA | 10 | NA | 2.37 | 19.57 | 12.13 | 2,825.05 |
| Hemant Surgical Industries Limited | 149.95 | 10 | 14.59 | 10.28 | 32.42 | 30.73 | 1,1149.68 |
| QMS Medical Allied Services Limited | 103.45 | 10 | 26.53 | 3.90 | 9.06 | 39.44 | 1,0478.19 |
Amkay Products IPO Objective
Amkay Products Limited’s main objective is to strategically allocate funds for capital expenditures, particularly for installing additional machinery, and to ensure adequate liquidity for meeting working capital requirements, thereby facilitating sustainable growth and operational efficiency.
- Funding Capital Expenditure towards the installation of additional machinery: The company intends to utilize INR 50.20 Lakhs for capital expenditure, specifically for installing a Blood Lancet-Making Machine, aiming to capitalize on increasing demand and enhance capacity and sales efficiency.
- To Meet Working Capital Requirement: The company plans to utilize INR 800.00 Lakhs from the net proceeds of the issue to fulfill working capital needs, primarily for trade receivables, inventories, and payments to trade payables, supplementing with borrowings as necessary.
- General Corporate Purpose: The company will deploy the balance funds towards general corporate goals, including utilizing funds for operating expenses and development costs, strengthening business capabilities, and meeting exigencies.
Amkay Products IPO Risks And Challenges
Amkay Products Limited’s risks include heavy reliance on Maharashtra for sales and manufacturing, dependence on third-party manufacturers, and lack of long-term contracts with suppliers, which challenges operations and growth.
- They heavily rely on Maharashtra for domestic sales and manufacturing. Geographical concentration poses risks from local factors. Expansion may face challenges from local competition, requiring careful strategy.
- They rely on third-party manufacturers for production, facing challenges such as compliance, supply chain disruptions, and the necessity for stringent quality control and vendor selection to ensure smooth operations and product consistency.
- They deal in various medical devices and disposables, lacking long-term contracts with all suppliers. Dependency on top suppliers poses risks of delays or inability to meet demand, exacerbated by factors like volatility in raw material supply and pricing.
Amkay Products IPO – Industry & Market Potential
India’s healthcare sector, comprising hospitals, medical devices, and more, has rapidly grown with public and private components. Its competitive advantage includes well-trained professionals and cost-effectiveness, driving medical tourism and R&D activities.
India’s medical devices sector, comprising large multinationals and smaller firms, was valued at Rs. 90,000 crore in 2022 and is expected to reach US$50 billion by 2030. Export figures signal substantial growth potential.
India aims to reduce reliance on medical device imports with initiatives like NITI Aayog’s roadmap. Predictions suggest it could become a US$50 billion market by 2025-26, emphasizing domestic manufacturing and innovation.
Amkay Products IPO – Type of Offer
Amkay Products Limited’s IPO consists of a fresh issue of 22,92,000 lakh shares worth INR 12.61 crores. The company aims to invest in machinery, support working capital, and fulfill general corporate purposes.
Amkay Products IPO Offer Size
The offer size of Amkay Products Limited is INR 12.61 crores, consisting of a fresh issue of 22,92,000 lakh shares. The company seeks funds to invest in machinery, support working capital, and fulfill general corporate purposes.
Amkay Products Ltd IPO Allotment Structure
Amkay Products’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for an Amkay Products Ltd IPO?
To apply for the Amkay Products IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Amkay Products IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Amkay Products IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Amkay Products ‘s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Amkay Products IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Amkay Products IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Amkay Products IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Amkay Products IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) Small Medium Enterprise (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Amkay Products Ltd IPO Offer Registrar
The registrar for the Amkay Products IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
BIGSHARE SERVICES PRIVATE LIMITED
Address: S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre,Mahakali Caves Road,
Andheri (East) Mumbai – 400093, Maharashtra, India.
Telephone: +91 22 6263 8200
Email: [email protected]
Website: www.bigshareonline.com
Amkay Products IPO – FAQs
The allotment date of the Amkay Products IPO is May 6, 2024.
The price band of the issue is INR 52-55 per share.
The offer size of Amkay Products Limited is INR 12.61 crores, consisting of a fresh issue of 22,92,000 lakh shares. The company seeks funds to invest in machinery, support working capital, and fulfill general corporate purposes.
The listing date of Amkay Products ‘s IPO is May 8, 2024.
