Amanta Healthcare Ltd

About Amanta Healthcare Limited IPO

Amanta Healthcare Limited is an IPO of up to 1,25,00,000 equity shares. It consists of a fresh issue aggregating up to 1,25,00,000 equity shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.

Objective of Amanta Healthcare Limited IPO

• Funding capital expenditure requirements for civil construction work and towards purchase of equipment, plant and machinery for setting up the new manufacturing line of SteriPort at Hariyala, Kheda, Gujarat.
• Funding capital expenditure requirements towards purchase of equipment, plant and machinery for setting up a new manufacturing line for Small Volume Parenteral (SVP) at Hariyala, Kheda, Gujarat.
• General corporate purposes.

Industry Outlook

In 2021, healthcare expenditure as a percentage of GDP increased to 10.3% globally (~$ 980,000 crores), owing to prioritisation of public health during the pandemic, availability of better medical facilities, advancements in medicine and increase in disposable incomes.

For fiscal 2024, India exported formulations worth USD 1230 crores to regulated markets, with US alone contributing ~66% of the total exports (to regulated markets). India's share of formulation exports is low in value terms as India is primarily into trade generic and branded generics exports. However, India's share in formulation exports to US markets has improved over the years as it capitalised on opportunities created by patent expires. Europe is another major export destination for India with a share of ~24% (overall exports to regulated markets). India exported formulation worth USD 1010 crores to semi-regulated markets in fiscal 2024.

Indian injectables market in Indian domestic formulation industry has recorded steady growth in recent years. The market grew at a CAGR of 7.2% from ₹19,200 crores in fiscal 2019 to ₹27200 crores in fiscal 2024. Going ahead, the Indian injectables market is expected to grow at a CAGR of 7.5-8.5% over the next five fiscal years from fiscal 2024 to fiscal 2029 to reach ₹37,500-40,000 crores by fiscal 2029.

Indian IV fluids market is estimated to be valued at ~ ₹ 4500-4700 crores as of fiscal 2024, compared to ~ ₹2900 crores in fiscal 2019. Going ahead with growth of overall healthcare delivery market in India and the factors outlined above the industry is estimated to register a CAGR of ~9-11% between fiscals 2024-2029 and reach ~₹7000-8000 crores by fiscal 2029 owing to sustained demand from end-use segments like hospitals and clinics.

Company Information

Amanta Healthcare Limited is a pharmaceutical company engaged in developing, manufacturing and marketing a diverse range of sterile liquid products - parenteral products, being packed in plastic containers with Aseptic Blow-Fill-Seal (ABFS) and Injection Stretch Blow Moulding (ISBM) technology.

They manufacture large volume parenterals (LVPs) and small volume parenterals (SVPs) in six therapeutic segments. In addition to that, they also manufacture medical devices. They manufacture fluid therapy - (IV Fluid), formulations, diluents, ophthalmic, respiratory care and irrigation solutions in the therapeutic segment and products like irrigation, first-aid solution, eye lubricants, etc. in the medical device segment. They offer a wide range of closure systems, such as nipple head, twist-off, leur-lock and screw types and container fill-volume ranging from 2ml to 1000 ml.

Risks of Amanta Healthcare Limited IPO

• The company’s entire manufacturing facility is located at a single location, and all of the company’s manufactured products are produced from Hariyala, district Kheda, Gujarat. Any delay in production at, or shutdown of, their manufacturing facility may in turn adversely affect their business, financial condition and results of operations.

• They are significantly dependent on imports of plastic granules being primary packing material and are to that extent exposed to risks including duties placed on imports from other countries or regulatory or market concerns regarding materials sourced from such countries, fluctuations in global commodity prices, and foreign currency exchange fluctuations.

• Reforms in the healthcare industry and the uncertainty associated with pharmaceutical pricing, reimbursement and related matters could adversely affect the marketing, pricing and demand for their products.

Anchor Investor Information

The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Issue Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Beeline Capital Advisors Private Limited

Registrar for the IPO is MUFG Intime India Private Limited

Business Model

The company earns its revenue through the following sources:

• Developing, manufacturing, and marketing a diverse range of sterile liquid products. Their product portfolio is categorised into six therapeutic segments: fluid therapy (IV fluids), formulations, diluents and injectables, ophthalmic solutions, respiratory care, and irrigation solutions.
• Manufacture of products like irrigation, first-aid solution, eye lubricants etc. in medical device segment.
• They also offer a wide range of closure systems, such as nipple head, twist-off, leur-lock and screw types and container fill-volume ranging from 2 ml to 1000 ml.

Company Growth Trajectory

The company has experienced growth in the past three years. Its total income has grown at a CAGR of 11.56% from ₹226.268 crores in fiscal 2022 to ₹281.607 crores in fiscal 2024. Its revenue from operations too has grown from ₹22,544.13 crores to 28,034.03 crores between FY22 to FY24.

Company Market Position

The company is positioned in the market as a well-established manufacturer of pharmaceutical formulations with a diverse product portfolio and diverse market with large manufacturing capabilities, wide domestic and international marketing network, and an experienced management team supported by a large, diverse, and skilled workforce.

As per the Draft Red Herring Prospectus, the company has 113 active product registrations with international authorities. Its diverse product portfolio gives it consistency and sustainability in business.

How To Check Allotment Status of Amanta Healthcare Limited IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar MUFG Intime India Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Amanta Healthcare Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the MUFG Intime India Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Amanta Healthcare Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status