Medicamen Organics Limited is launching an IPO consisting of a fresh issue of 31,00,000 shares worth INR 10.54 crores. The Company aims to fund product registration, plant updates, production increases, working capital, and corporate purposes.
Medicamen Organics IPO – Important Dates
| Medicamen Organics Limited IPO Date | June 21, 2024, to June 25, 2024 |
| Medicamen Organics Limited IPO Listing Date | June 28, 2024 |
| Medicamen Organics Limited IPO Price | INR 32-34 per share |
| Medicamen Organics Limited IPO Lot Size | 4000 shares |
| Medicamen Organics Limited IPO Total Issue Size | INR 10.54 crores |
| Medicamen Organics Limited IPO Basis of Allotment | June 26, 2024 |
| Medicamen Organics Limited IPO Initiation of Refunds | June 27, 2024 |
| Medicamen Organics Limited IPO Credit of Shares to Demat | June 27, 2024 |
| Medicamen Organics Limited IPO Issue Type | Book Built Issue IPO |
| Medicamen Organics Limited IPO Listing At | NSE SME |
Medicamen Organics Ltd IPO – Company Profile
Medicamen Organics Limited develops, manufactures, and distributes pharmaceutical dosages for government and private institutions. They market products domestically and internationally, focusing on direct exports and contract manufacturing.
With two WHO GMP-approved facilities in Haridwar, they produce 84 pharmaceutical products. ISO 9001:2015 certified, they focus on R&D and quality testing and offer a wide range of affordable drugs.
The company consistently supplies quality products, adheres to safety standards, and expands its product line. With nearly three decades of industry experience, its management prioritizes quality, led by promoter Mr. Bal Kishan Gupta.
Medicamen Organics Limited IPO Fundamental Analysis
Medicamen Organics Limited Technologies’ financial analysis reveals a mixed performance. Revenue increased, equity and profitability improved, EPS and RoNW rose, total assets grew, and inventory turnover decreased, suggesting potential inefficiencies.
- Revenue Trend: The revenue increased from ₹2,097.52 lakhs in March 2022 to ₹2,214.71 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 2,527.17 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹10.14 lakhs in March 2022 to ₹240.41 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹0.17 in March 2022 to ₹3.18 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 1.27% to 15.83%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Medicamen Organics IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 2,097.52 | 2,214.71 | 2,527.17 |
| Equity (₹ in lakhs) | 801.06 | 897.99 | 1,518.4 |
| Expenses (₹ in lakhs) | 2,093.15 | 2,160.27 | 2,190.08 |
| Profit and Loss After Tax (₹ in lakhs) | 10.14 | 96.93 | 240.41 |
| Diluted EPS only (₹) | 0.17 | 1.62 | 3.18 |
| Return on Net Worth (%) | 1.27 | 10.79 | 15.83 |
| NAV per Equity Share (₹) | 13.35 | 14.97 | 17.66 |
| Total Assets (in lakhs) | 2,753.79 | 3,258.57 | 3,858.07 |
| Total Liabilities (in lakhs) | 1,952.73 | 2,360.58 | 2,339.67 |
| Debt Equity Ratio | 1.28 | 1.31 | 0.13 |
| Current Ratio (in times) | 0.88 | 0.95 | 1.25 |
| Inventory Turnover Ratio | 3.63 | 2.46 | 2 11 |
Medicamen Organics Ltd IPO Peer Comparison
Medicamen Organics Limited shows strong profitability and return on net worth compared to Brooks Laboratories Ltd and Zenotech Laboratories Ltd. Despite lower revenue, Medicamen has higher earnings per share and solid financial ratios, indicating stability.
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| MedicamenOrganics Limited | 2,528.96 | 10 | – | 3.18 | 15.83 | 17.66 |
| Brooks Laboratories Ltd | 6,340.80 | 10 | 10.60 | (12.57) | (28.26) | 30.10 |
| Laboratories Ltd | 6,809.94 | 10 | 53.84 | 0.43 | 1.75 | 22.40 |
| Zenotech Laboratories Ltd | 4,350.80 | 10 | 38.76 | 1.90 | 14.08 | 14.20 |
Medicamen Organics Limited IPO Objective
The main objective of Medicament Organics Limited is to fund international product registration expenses, update and expand plant capacity, and support working capital requirements.
- Funding of expenses proposed to be incurred towards Product registration in the international markets: The Company intends to utilize INR 3 crores from the Net Proceeds for international product registration, enhancing its 29-year experience in manufacturing and distributing pharmaceutical dosages across domestic and global markets.
- Plant updation and increase in production capacity: The Company plans to utilize INR 2.25 crores from the Net Proceeds to upgrade and expand its manufacturing plants, mainly focusing on increasing the production capacity of Iron Tablets to meet growing export demands.
- Funding working capital requirements of the Company in the ordinary business: The Company invests its working capital requirements through internal accruals, equity, and bank facilities. With an aggregate of INR 5.86 crores sanctioned, it plans to utilize INR 4 crores from Net Proceeds for future growth.
- General Corporate Purposes: The Company will deploy the balance of funds towards general corporate purposes, including strategic initiatives, partnerships, funding growth opportunities, brand building, marketing activities, and addressing ongoing corporate exigencies.
Medicamen Organics IPO Risks And Challenges
Medicamen Organics Limited’s risk includes involvement in litigation, pending licenses and permits, and dependence on third-party suppliers for raw materials, potentially impacting operations, finances, and reputation.
- The Company, its directors, and its promoters are involved in litigation and claims pending at various levels, posing potential liabilities, penalties, and reputational and financial risks if adverse decisions are made.
- The Company is subject to various laws and regulations, requiring licenses and permits, some of which are pending renewal or issuance. Compliance challenges may arise, impacting operations and attracting penalties.
- The Company relies on third-party suppliers for critical raw materials, facing price fluctuations and supply availability risks. While enjoying favorable terms, any disruption could impact production, delivery, customer retention, and revenues.
Medicamen Organics Limited IPO – Industry & Market Potential
India’s pharmaceutical industry is poised for significant growth. The market size is expected to reach US$65 billion by 2024 and US$130 billion by 2030. The industry is a major global exporter and a key player in biotechnology.
India’s pharmaceutical sector attracts foreign investment and exports to over 200 countries, including highly regulated markets. Notably, it supplied hydroxychloroquine globally and recorded significant exports of drugs and pharmaceuticals, reaching US$ 25.3 billion in FY23.
The Indian pharmaceutical industry is prominent in global trade, providing affordable generic medications to millions worldwide. Adhering to international standards and receiving government support offers significant potential for investors and growth in domestic sales.
Medicamen Organics Ltd IPO – Type of Offer
Medicamen Organics Limited is coming up with an IPO consisting of a fresh issue of 31,00,000 shares worth INR 10.54 crores. The Company aims to fund product registration, plant updates, production increases, working capital, and corporate purposes.
Medicamen Organics IPO Offer Size
The offer size of Medicamen Organics Limited is INR 10.54 crores, consisting of a fresh issue of 31,00,000 shares. The Company seeks funds for product registration, plant updates, production increases, working capital, and corporate purposes.
Medicamen Organics Ltd IPO Allotment Structure
Medicamen Organics Limited’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. 172,000 shares are reserved for market makers.
● 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.
● Market Maker Reservation: A portion of shares, i.e. 172,000 shares, are reserved for marker makers.
How to apply for a Medicamen Organics Limited IPO?
To apply for the Medicamen Organics Limited 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 Medicamen Organics Limited 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 Medicamen Organics Limited 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 Medicamen Organics Limited’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 Medicamen Organics Limited 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 Medicamen Organics Limited 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 Medicamen Organics Limited IPO:
● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Medicamen Organics Limited 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.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (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.
Medicamen Organics Limited Ltd IPO Offer Registrar
The registrar for the Medicamen Organics Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFIN TECHNOLOGIES LIMITED
Selenium Tower- B, Plot 31-32,
Gachibowli, Financial District,
Nanakramguda, Serilingampally,
Hyderabad-500 032, Telangana, India.
Tel No.: +91 40 6716 2222
Email: [email protected]
Website: www.kfintech.com
Medicamen Organics Limited Limited IPO – FAQs
The allotment date of the Medicamen Organics Limited IPO is June 26, 2024.
The price band of the issue is INR 32-34 per share.
The offer size of Medicamen Organics Limited is INR 10.54 crores, consisting of a fresh issue of 31,00,000 shares. The Company seeks funds for product registration, plant updates, production increases, working capital, and corporate purposes.
The listing date of Medicamen Organics Limited’s IPO is June 28, 2024.
