Amkay Products Ltd IPO: Review, Valuation, Date & GMP

Amkay Products Limited IPO  - Complete Overview

Established in 2007, Amkay Products Limited manufactures, assembles, and markets a comprehensive portfolio of medical devices, disposables, and other healthcare products.

The product range includes face masks, alcohol swabs, lancet needles, nebulizers, pulse oximeters, surgeon caps, and more. These products cater to healthcare centers, hospitals/clinics, nursing homes, and other healthcare facilities across India.

Additionally, the company is involved in branding and marketing activities for products such as diapers, plastic gloves, suction machines, among others.

With a portfolio comprising over 30 products, including respiratory disease-related medical devices, surgical disposables, home healthcare products, and others, the company currently manufactures over 20 products while branding and trading more than 10 others. 

Its manufacturing facility spans approximately 26,000 square feet and is equipped with the necessary infrastructure, including machinery, testing laboratories, and handling equipment, to ensure a smooth manufacturing process.

Amkay Products Limited holds ISO 9001:2015 accreditation for its quality management system from QRO Certification LLP. The company's manufacturing unit and warehouse are located in Thane, Maharashtra.

As of December 31, 2023, the company has generated revenue of Rs. 2,385.56 lakhs.

 

 

Amkay Products Limited IPO Overview

Amkay Products Limited IPO date is slated to be open for subscription from April 30, 2024, to May 3, 2024. This BSE SME IPO follows a Book Built Issue IPO.

Amkay Products Limited IPO price is fixed in the range of at Rs.52 to Rs.55 per share. 

The total issue size of this IPO amounts to Rs.12.61 Cr. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non-institutional investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Amkay Products Limited has seen growth in net worth but decreased in total revenue and total assets. The profit after tax and total borrowing has increased.

Amount in Lakhs

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	1,887.52	1,563.77	1,580.64
Total Revenue	2,385.56	2,825.05	3,679.45
PAT	215.34	151.02	146.71
Net worth	986.96	771.62	620.60
Reserve & Surplus	350.59	743.95	592.93
Total Borrowings	476.22	469.98	433.59

 

Product-wise Revenue Break-up

(Amount in Lakhs)

Particulars	31 Dec 2023	31 Mar 2023	31 Mar 2022
Plastic Lancet	365.36	284.19	221.30
Rubber Gloves	171.44	41.04	72.74
Face Mask	146.52	324.94	1,171.22
Alcohol SWAB	121.76	213.40	193.19
Nebulizer	120.94	134.70	140.02
Steel Lancet	119.53	115.41	106.77
Cap - Group' (Surgeon, Bouffant)	117.39	145.60	202.98
Diaper	99.09	99.14	73.29
Amkay Hot Bag'	86.27	62.02	44.76
Amkay Air Bed'	72.78	114.34	72.03
Other	853.53	1,251.65	1,352.07
Total	2,274.62	2,786.42	3,650.37

 

Geography-wise Revenue Break up

(Amount in Lakhs)

State	31 Dec 2023	31 Mar 2023	31 Mar 2022
Maharashtra	569.53	1,048.63	1,281.17
Gujarat	277.44	200.96	223.37
Meghalaya	140.63	1.45	1.73
Assam	130.44	84.59	180.59
Karnataka	91.77	141.28	194.51
Odisha	90.18	72.13	80.12
Delhi	85.65	91.70	118.38
Rajasthan	83.96	123.33	184.16
Kerala	78.74	120.44	154.98
TamilNadu	77.84	108.03	144.75
Total	1,626.18	1,992.54	2,563.76

 

The Objective of the Issue

The company will use the proceeds of the Issue to meet the following objectives:

1. Funding Capital Expenditure towards installation of additional Machinery.

2. To meet working capital requirements.

3. General Corporate Purpose

 

 

Peers of Amkay Products Limited IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
Amkay Products Limited	10	2.37	-
Hemant Surgical Industries Limited	10	10.28	14.59
QMS Medical Allied Services Limited	10	3.90	26.53

 

Evaluation

The IPO is priced within the range of Rs.52 to Rs.55 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 2.37 from the last year, the resulting P/E ratio is 23.18x.

• Taking into account the weighted EPS of Rs 2.77 for the last three years, the P/E ratio amounts to 19.85x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 20.56x.

As a result, the IPO price range, with a P/E ratio ranging from 23.18x to 19.85x, seems aggresively priced to the industry average of 20.56x.

 

IPO's Strengths

• Robust portfolio encompassing a diverse range of products catering to varied consumer preferences.

• Extensive dealer network spanning key regions across India.

• Strong quality assurance measures guaranteeing consistent product quality standards.

• Revenue diversification achieved through operations in multiple geographic locations.

• Seasoned promoter accompanied by a senior management team boasting a proven track record and extensive industry expertise.

 

IPO's Weaknesses

• The company faces risks associated with the sourcing of raw materials and components from third-party suppliers for manufacturing its medical devices and disposables.

• A significant portion of the company's revenue is dependent on a few key customers.

• The company is required to obtain, renew, or maintain certain statutory and regulatory permits and approvals.

• There has been a decline in the company's revenue from operations over the past two financial years.

• The company is involved in certain legal proceedings.

• The company has experienced negative operating, investing, and financing cash flows in the past.

• The company faces competition from other large and established competitors.

 

IPO GMP Today

The Latest GMP of Amkay Products Limited is Rs.62.

 

 

Amkay Products Limited IPO timetable (Tentative)

Amkay Products Limited IPO is scheduled from April 30 to May 3, 2024, with allotment on May 6, refund initiation on May 7, and listing on May 8, 2024.

Events	Date
IPO Opening Date	April 30, 2024
IPO Closing Date	May 3, 2024
IPO Allotment Date	May 6, 2024
Refund initiation	May 7, 2024
IPO Listing Date	May 8, 2024

 

Amkay Products Limited IPO Details 

Amkay Products Limited IPO, with a face value of Rs.10 per share, opens on April 30 and closes on May 3, 2024, offering 2,292,000 shares at Rs.52 to Rs. 55 per share, with a lot size of 2000 shares, aiming to raise Rs.12.61 Cr, and will be listed on BSE SME.

IPO Opening & Closing Date	April 30, 2024 to May 3, 2024
Face Value	Rs. 10 per share
Issue Price	Rs. 52 to Rs. 55 per share
Lot Size	2000 Shares
Price of 1 lot	Rs. 110,000
Issue Size	2,292,000 Shares (aggregating up to Rs.12.61 Cr)
Fresh issue	2,292,000 Shares (aggregating up to Rs.12.61 Cr)
Listing at	BSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Amkay Products Limited IPO Lot Details 

For Amkay Products Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (2000 shares) at Rs.110,000 while for HNI investors, the minimum investment is 2 lots (4000 shares) at Rs.220,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

Amkay Products Limited IPO Reservation

Institutional Share Portion	50%
Non-institutional Share Portion	15%
Retail Share Portion	35%

 

Promoters and Management of Amkay Products Limited

• Kashyap Pravin Mody 

• Himanshu Kantilal Batavia.

Pre-issue Promoter shareholding	99.89%
Post-issue Promoter shareholding	73.44%

 

 

Amkay Products Limited IPO Lead Managers

• Hem Securities Limited

 

Dividend Policy

The Company has not paid or declared any dividend on the Equity Shares in the past fiscal years.

 

Conclusion

The company operates in a competitive market, and its revenue has been declining for the past two financial years. Seasoned investors are advised to thoroughly consider these factors before applying for the upcoming IPO to maximize potential gains.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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