IPO Details
RHP/DRHPIssue Date
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IPO Size
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Schedule of Vijaypd Ceutical Ltd
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About Vijaypd Ceutical IPO
The IPO of Vijaypd Ceutical Ltd comprises a fresh issue of up to 53,00,000 equity shares. There’s no offer for sale in this IPO which is a 100% book-built issue.
Objectives of Vijaypd Ceutical IPO
- Funding of capital expenditure requirements of the company towards the construction of pharmaceutical API/ intermediates and chemicals manufacturing plant and purchase of machineries in MIDC, Maharashtra
- Funding its incremental working capital requirements
- Repayment/prepayment of all or certain of its borrowings availed of by the company
- General corporate purposes
Vijaypd Ceutical IPO Valuation
Vijaypd Ceutical IPO Share Offer and Subscription Details
| Investor | Shares Offered |
|---|---|
QIBs | Not more than 50% of the issue |
Non-institutional Investors | Not less than 15% of the issue |
Retail Individual Investors | Not less than 35% of the issue |
Industry Outlook
The global dominance of the Indian pharmaceutical industry, primarily in generic formulation space is set to continue in the foreseeable future. The patent cliff which lifted the patent protection of numerous blockbuster drugs has been a major enabler in the growth of formulations. Indian firms have been able to capitalise on the patent cliff by the timely launch of generic versions in the US market. Based on the expected developments, the annual revenue turnover in the pharmaceutical industry is expected to reach ₹7300 Bn by FY 2030, growing by a CAGR of 10% during FY 2024-30.
Company Information
Vijaypd Ceutical Ltd is a distributor and supplier of pharmaceutical products and consumer goods sectors, offering a comprehensive range of services. Its role includes being representatives, dealers, agents, stockists, suppliers, traders, and packers. It provides a wide range of products, serving both the pharmaceutical and wellness industries, as well as the fast-moving consumer goods (FMCG) market. This includes pharmaceutical and wellness products such as medicines, including injections, tablets, capsules, ointments, suppositories, ophthalmic preparations, and liquid oral products, vitamins, hormones, enzymes, and wellness tonics, serums and diagnostic test kits. It also offers fast-moving consumer goods, such as personal care and toiletries like soaps, sanitisers, and baby care items, ayurvedic products, cosmetics and food products. Additionally, it provides dental products and crude drugs.
Strengths of Vijaypd Ceutical IPO
Strengthen its Market Position by Increasing the Long-term Relationship with the Clients
One of the oldest pharmaceutical distributors, based in the Western Mumbai Suburban, benefits from its strategic location. The company enjoys easy access to a vast network of pharmaceutical manufacturers, wholesalers, pharmacies, clinics, and nursing homes. This geographical advantage allows for quick distribution across the city and surrounding areas, ensuring efficient delivery and enhancing the company’s ability to meet market demands.
Comprehensive Product Portfolio
The pharmaceutical distribution network serves a wide range of healthcare needs, from generic medications to branded drugs, acute therapy drugs, wellness products, OTC products, baby products and food products. This includes medicines for chronic diseases, antibiotics, and nutraceuticals. The distribution also includes a growing range of specialized medicines for chronic medicine, psychiatric medicine, immunology, ophthalmic medicine, cardiology, and endocrinology, among other specialties. This diverse portfolio enables it to cater to a wide variety of healthcare and customised needs of customers.
Streamlined Supply Chain Management
The company maintains an efficient and well-managed supply chain. This efficiency results in reduced lead times, minimised inventory costs, and improved overall responsiveness to market changes. Such streamlined supply chain operations provide a significant competitive advantage in the pharmaceutical distribution industry, where timeliness and efficiency are crucial factors.
Risks of Vijaypd Ceutical IPO
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Risks Associated with Diversification into API and Excipients Manufacturing:The company is positioning itself to expand its market presence by diversifying into the manufacturing of Active Pharmaceutical Ingredients (APIs), which serve as raw materials for the formulation of various types of Finished Dosage Forms (FDF) and Excipients. However, this expansion may expose it to several risks that could adversely affect its growth, prospects, cash flows, business operations, and financial condition.
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Risks Related to Product Returns, Spoilage, Damage, and Liability Claim:The company may incur losses and its reputation may be adversely affected by the return of its products by customers, arising from the distribution of expired, unsafe, defective, ineffective or counterfeit products, and product spoilage, breakage and damage during transportation or in storage. It may also be subject to product liability claims.
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Geographic Concentration of Revenue in Maharashtra:The company derives a significant portion of its revenue from customers located in Maharashtra. Any adverse developments in the region could adversely affect its business, results of operations, cash flows and financial condition.
Vijaypd Ceutical IPO Financials
Peer Comparison
| Company Name | EPS in ₹ | Return on Net Worth (in %) | NAV Per Share (in ₹) |
|---|---|---|---|
Vijaypd Ceutical Ltd | 8.25 | 25.04 | 32.96 |
MedPlus Health Services Ltd | 0.79 | 0.82 | 98.10 |
Entero Healthcare Solutions Ltd | 10.63 | 2.36 | 373.94 |
IPO Registrar and Book Running Lead Manager
IPO Registrar: Kfin Technologies Ltd
Book Running Lead Manager: Smart Horizon Capital Advisors Private Limited
Business Model
The primary line of business of Vijaypd Ceutical Ltd is in the distribution of healthcare products to retail pharmacies, nursing homes and healthcare clinics in Maharashtra. Its ancillary lines of business are comprehensive and integrated commercial solutions, including sales, marketing and supply chain solutions to pharmaceutical companies and healthcare product manufacturers.
Company Growth Trajectory
The revenue from operations of Vijaypd Ceutical Ltd grew from ₹54.3145 crores in FY 22 to ₹59.2093 crores in FY 24, while its EBITDA margin grew from 2.77% in FY 22 to 8.22% in FY 24. The company’s PAT margin grew from 0.23% in FY 22 to 2.79% in FY 24. Its diverse portfolio coupled with robust last-mile delivery infrastructure and good relationships with healthcare providers has contributed to the company’s growth.
Market Position
Operating three distribution warehouses located across Mumbai, ensuring timely and efficient deliveries, as of September 30, 2024, the customer base of Vijaypd Ceutical Ltd includes over 1,451 pharmacies, clinics, and nursing homes across three districts, covering 20 locations.
Its distribution network is supported by connecting with more than 154 healthcare product manufacturers, granting its access to a diverse range of over 24,000 product stock-keeping units. It’s one of the oldest pharmaceutical distributors in western Mumbai.
Vijaypd Ceutical Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 59.2206 | 52.9172 | 56.0044 |
Profit Before Tax (in ₹ crores) | 2.7787 | 0.3553 | 0.0528 |
Profit After Tax (in ₹ crores) | 1.6502 | 0.1816 | 0.1236 |
EPS in ₹ | 8.25 | 0.91 | 0.62 |
Vijaypd Ceutical Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 2.7787 | 0.3553 | 0.0528 |
Net Cash Generated from / (used in) Operating Activities (in ₹ crores) | 2.9299 | 0.3083 | (0.1299) |
Net Cash Generated from / (used in) Investing Activities (in ₹ crores) | 13.7702 | (0.0899) | (0.2287) |
Net Cash Generated from / (used in) Financing Activities (in ₹ crores) | (2.8554) | (0.1898) | 0.3588 |
Cash and Cash Equivalents at the End (in ₹ crores) | 13.9177 | 0.0731 | 0.0445 |
How to Check Allotment Status of Vijaypd Ceutical IPO?
Visit the Registrar’s Website
- Visit the official website of Kfin Technologies Ltd
- Click on ‘IPO Allotment Status’ from ‘Investors’ under ‘Products’ dropdown
- Click on any one of the links
- Select the IPO name and enter either application number, PAN or Demat account number
- Enter captcha and click on ‘Submit’ to know the status
Check on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Vijaypd Ceutical Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN Then click 'Submit' to know the allotment status.
How to Apply for Vijaypd Ceutical IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Vijaypd Ceutical Ltd IPO FAQs
Where can I read more about Vijaypd Ceutical Ltd business?
You can read more about Vijaypd Ceutical Ltd and its IPO from the company’s red herring prospectus (RHP) here.
What is the Vijaypd Ceutical IPO?
The Vijaypd Ceutical Ltd IPO comprises a fresh issue of up to 53,00,000 equity shares.
When will the IPO of Vijaypd Ceutical go live?
The exact dates of the IPO are yet to be announced.
