Onyx Biotec IPO, Price, date, GMP, Key Details

Onyx Biotec IPO-Complete Overview

Onyx Biotec IPO an SME IPO is a book-built issue of Rs.29.34 crore by Onyx Biotec Limited. The company was established in May 2005. The pharmaceutical company began offering sterile injection water. In addition to being a pharmaceutical contract maker, the company currently produces Sterile Water for Injections and provides a wide variety of Dry Powder Injections and Dry Syrups for the Indian and international markets.

Two of the company's manufacturing facilities are located in Solan, Himachal Pradesh. Unit II can create 26,667 units of dry syrup and 40,000 units of dry powder injections in a single shift, while Unit I can produce 638,889 units of sterile water for injections per day.

Hetero Healthcare Limited, Sun Pharmaceutical Industries Ltd., Mankind Pharma Ltd., Akums Drugs and Pharmaceuticals Ltd., Reliance Life Sciences Ltd., etc are among the company's clients. 

ROHS Certification Private Limited has granted the organization ISO 9001:2015, ISO 14001:2015, and management system certifications.

This Onyx IPO will start on 13 November 2024, and its ‘initial public offering’ will end on 18 November 2024.

 

Onyx IPO Overview

The Rs.29.34 crore new SME IPO comprises a wholly fresh issue of 48.1 lac Shares. 

This upcoming IPO date is from November 13 to November 18, 2024. The Onyx Biotec Limited IPO price band is Rs.58 to Rs.61 for each Share. 

The expected IPO listing date is Thursday, 21 November 2024, and listing at NSE and SME.

If you want to apply for the IPO, Click Here to open a Demat Account.

Company Financial

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Segment-wise Revenue Breakdown  

(Amount in lac)

 

State-wise Revenue Breakdown  

(Amount in lac)

 

Export-wise Revenue Breakdown  

(Amount in lac)

 

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Upgrading Unit I's current production capacity to produce parentals in large quantities for intravenous usage.

• Establishing a high-speed cartooning packaging line for dry powder injections in the current Unit II manufacturing facility.

• Payback in full or in part of some of the debts that the company has obtained.

• General corporate purposes.

Peers of Onyx Biotec Ltd.

 

 

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

Evaluation

The IPO price is Rs.58 to Rs.61 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.2.54 from the last year, the resulting P/E ratio is 24.01x.

Considering the weighted EPS of Rs.2.26 for the last three years, the P/E ratio is 27x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 75.10x.

 

In simple words, the P/E ratio of this IPO (24.01x), compared with the industry’s average P/E of 75.10x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths 

• Well-Established Product Portfolio: Onyx Biotec meets essential healthcare demands with specialized products including dry powders and sterile injections.

• In the manufacturing domain, it has high-capacity manufacturing facilities that depict stringent standards of quality and operational efficiency.

• Onyx Biotec enjoys strong client networks along with an excellent market reputation and customer retention due to its long-standing cooperation with pharmaceutical giant companies.
  
  

IPO's Weaknesses

• The pharmaceutical industry is strictly regulated. Changes in rules and regulations can impact the normal running of business, thus resulting in increased costs or fluctuations in revenue earnings.

• Market conditions may change overnight, and capital-intensive expansion plans may stress the finances of the company.

• India also has many pharmaceutical companies in competition, so it is a very competitive market. This kind of competition may affect the market share and profit margin of Onyx Biotec.
  
  

Onyx IPO GMP

The IPO GMP today is Rs.5 as of 9 November 2024. With a price of Rs.61 per Share, the estimated IPO listing price is Rs.66 when writing this information.

IPO Timetable (Tentative)

The IPO opening date is from November 13 to November 18, 2024, with allotment on November 19, refund initiation on November 20, and listing on November 21, 2024.

 

Onyx IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 48,10,000 Shares (Rs.29.34 Cr).

Onyx IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.1,22,000 and in multiples thereof. In contrast, for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,44,000.

 

Onyx Biotec IPO Reservation (% of Net Issue)

 

Promoters And Management of Onyx Biotec Ltd.

• Sanjay Jain

• Naresh Kumar

• Fateh Pal Singh.
  
  

 

IPO Lead Managers

• Horizon Management Private Limited.
  
  

Dividend Policy

The company has not paid dividends in the last three FYs.

Conclusion

The Onyx Biotec IPO provides investors with an opportunity to invest in a rapidly growing pharmaceutical company having an excellent product portfolio and mature customers. It offers the issue at Rs.58-61 per share, which appears value-priced based on the P/E multiple considering sector peers. However, the investor needs to balance the dependence of the company on regulations and the competitive environment. This IPO would appeal to investors who wish to invest in a promising pharmaceutical sector with some regulatory oversight.

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.

DISCLAIMER:

 This blog is NOT any buy or sell recommendation. No trading advice/suggestion is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.  

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