Saroja Pharma Industries India IPO - Review, Valuation & Todays GMP

Saroja Pharma Industries India Limited - Complete Overview

Established in 2019, Saroja Pharma Industries India Limited engages in the trade, supply, and export of Specialty Chemicals and API, for both human and veterinary medicine.

The company was founded with the mission of delivering client-specific approved products at competitive prices, ensuring hassle-free dispatch within India and abroad, thereby contributing to cost-effectiveness in end products for human and veterinary medicine.

The company is involved in dealing with three categories of products: Chemicals, Pharma Intermediaries, and Veterinary Pharma APIs.

Since its inception, Saroja Pharma Industries India Limited has experienced significant growth in its client base over the past two years. This expansion has driven the company to enter the manufacturing sector for API Pharma products. APIs, commonly referred to as bulk drugs or bulk actives, constitute the primary components used in producing finished dosages such as capsules, tablets, liquids, and other forms.

The company boasts a robust history of revenue growth and profitability. In the fiscal year 2023, the company achieved a revenue of ?5,019.32 lakh. It also exports its products to various countries including Pakistan, Jordan, Hong Kong, Russia, Egypt, etc.

 

What does the company do?

Saroja Pharma Industries India Limited engages in the trade, supply, and export of Specialty Chemicals and API, for both human and veterinary medicine.

 

 

Company Products

Liquid Bromine, N-[(4S,6S)-6-Methyl-7,7-dioxido-2-sulfamoyl-5, 6-dihydro-4Hthieno[2,3-b]thiopyran-4yl) acetamide, Ethyl Acetate, Thionyl Chloride, Para Nitro Phenol, Oxyclozanide BP Vet, Benzyl Chloride, Bromhexine HCL BP Grade, Triclabendazole, Fenbendazole BP Vet,  Nitroxynil BP Vet, Oxfendazole BP Vet, Albendazole USP, Rafoxanide BP Vet, and Febantel EP.

 

IPO Overview

The Saroja Pharma IPO Date is set from August 31 to September 5, 2023. The upcoming SME IPO is anticipated to be listed on the NSE SME platform on September 13, 2023.

The company aims to raise Rs.9.11 Crores through this issue in order to accomplish specific objectives. The IPO price has been established by the company at Rs.84 per share

Continue reading for a comprehensive IPO review and SME IPO GMP.

 

Saroja Pharma Industries India Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	31 August 2023
IPO Closing Date	5 September 2023
IPO Allotment Date	8 September 2023
Refund initiation	11 September 2023
IPO Listing Date	13 September 2023

 

Saroja Pharma Industries India Limited IPO Details

IPO Opening & Closing Date	31 August to 5 September 2023
Face Value	Rs.10 per share
Issue Price	Rs.84 per share
Lot Size	1600 Shares
Price of 1 Lot	Rs. 134,400
Issue Size	1,084,800 Shares (aggregating up to Rs.9.11 Cr)
Offer for Sale	NA
Fresh Issue	1,084,800 Shares (aggregating up to Rs.9.11 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Kfin Technologies Ltd.

 

Saroja Pharma Industries India Limited IPO Lot Details

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

 

Saroja Pharma Industries India Limited IPO Reservation

Institutional Share Portion	50%
Retail Investors Share Portion	50%

 

Company Financial

(Amount in Lakhs)

Period	FY 21	FY 22	FY 23
Total Assets	822.39	1551.19	2133.99
Total Revenue	3674.67	5595.67	5035.09
PAT	73.13	114.01	106.06
Net Worth	93.59	402.60	508.66
Reserve & Surplus	92.59	380.02	215.09
Total Borrowings	301.77	613.88	1018.86

 

Revenue Breakup of Saroja Pharma Industries India Limited

(Amount in Lakhs)

Particulars	FY 23	FY 22	FY 21
Domestic Sale (including Consultation)	4,548.44	4,345.82	3,124.63
Exports Sale	470.88	1,217.43	541.52
Total	5,019.32	5,563.25	3,666.15

 

Country Wise Geographical Revenue of Saroja Pharma Industries India Limited 

(Amount in Lakhs)

Name of the Country	FY 23	FY 22	FY 21
Pakistan	335.60	915.51	451.75
Jordan	85.77	99.74	37.61
Hong Kong	23.50	35.16	44.88
Singapore	12.74	13.40	-
Azad J&K	10.82	-	-
Russia	-	40.82	-
Egypt	2.45	77.58	-
Ukraine	-	-	-
Ghana	-	4.59	4.14
Uruguay	-	8.18	2.24
United Kingdom	-	10.59	0.9
Netherland	-	11.86	-
Total	470.88	1,217.43	541.52

 

State Wise Geographical Revenue of Saroja Pharma Industries India Limited 

(Amount in Lakhs)

Name of the State	FY 23	FY 22	FY 21
Andhra Pradesh	1,062.92	1,315.81	658.18
Gujarat	1191.93	869.57	1,056.14
Maharashtra	1289.33	1098.82	532.22
Telangana	956.16	1,016.53	783.47
Tamil Nadu	-	-	-
Himachal Pradesh	-	8.41	6.20
Punjab	-	-	47.37
Uttar Pradesh	-	-	41.05
Daman and Diu	-	35.50	-
Jharkhand	-	-	-
Madhya Pradesh	-	1.26	-
Total	4,500.34	4,345.82	3,124.63

 

Objective of the Issue

The company intends to allocate the funds for achieving the following objectives: 

• Establishing a manufacturing unit.
• Clearing unsecured loans.
• Covering public issue expenses.

 

Promoters and Management of Saroja Pharma Industries India Limited

Mr Biju Gopinathan Nair and Mr Manish Dasharath Kamble are the promoters of the company.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	73.02%

 

Peer Comparison

The following are the peers listed in the company's DRHP.

Company Name	Result Type	EPS (Rs.)	P/E Ratio
Saroja Pharma Industries India Private Limited	Standalone	3.61	23.27
NGL Fine Chem Limited	Standalone	84.57	23.15
Sequent Scientific Limited	Standalone	0.60	223.00

 

IPO's Valuations

For determining the IPO valuation of Saroja Pharma Industries IPO, we can utilize the data presented in the company's DRHP. With a share price of Rs.84 and an EPS of Rs.3.61, the PE ratio of the company is 23.27.

 

Dividend Policy

The company has not paid any dividends in the past, and the future payment of dividends depends on the company's financial performance.

 

IPO's Strengths 

• A robust management team comprising experienced promoters.
• A scalable business framework.
• The company offers a wide and diverse range of products.
• The company maintains diversified business operations and a revenue base.

 

IPO Weaknesses

• The company's business relies significantly on key customers from whom it derives a substantial portion of its revenue.
• Domestic sales of the company depend on the top 5 states in India.
• The company relies on a limited number of suppliers for purchasing its products.
• The company needs to update its name on certain statutory approvals and certificates due to its conversion into a Public Limited Company.
• The business requires the company to obtain and renew various registrations, licenses, and permits from government and regulatory authorities.
• There are no long-term supply agreements with vendors/suppliers.
• Some trading items of the company are hazardous. In the event of accidents involving such materials, the company may be held liable for subsequent damages and litigations.
• The company had negative cash flow in recent fiscal periods.
• The company is subject to foreign exchange rate fluctuations.
• The company operates in a highly competitive industry.
• The Promoters, Directors, and Key Managerial Personnel of the company may have interests in the company beyond reimbursement of expenses or remuneration.

 

 

IPO GMP

Saroja Pharma Industries IPO GMP is not yet available.

 

Conclusion

While Saroja Pharma Industries is gearing up to commence product manufacturing and expansion, its financial performance has exhibited inconsistency. Additionally, the stock appears to be overvalued based on the company's financial track record. Investors are advised to thoroughly analyze all factors before considering applying for this IPO.

 

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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