Mono Pharmacare Limited IPO - Review, Valuation & Today GMP

Mono Pharmacare Limited - Complete Overview

Established in 1994, Mono Pharmacare Limited operates in the pharmaceutical sector, primarily focusing on pharmaceutical product marketing and distribution.

The company works with various contract manufacturers to produce its products and sells those items under its brand "DLS Export". The company acquired DLS Export in 2022 for an aggregate amount of Rs.609 lakhs.

The company's product range encompasses Health Care products, Antibiotics, Cough and Cold Anti-Allergic medications, Antifungal treatments, Nutraceuticals, Analgesics, Antipyretics, Antacids, Antiemetics, Cardiac-Diabetic medicines, as well as skincare and cosmetic offerings.

As of February 28, 2023, the company maintains connections with 168 pharmaceutical enterprises and engages with a diverse clientele of 3,036 customers and vendors. This client mix includes both retail pharmacy stores and wholesalers.

 

What does the company do? 

Mono Pharmacare Limited operates in the pharmaceutical sector, primarily focusing on pharmaceutical product marketing and distribution.

 

Company Products

The company's product range encompasses Health Care products, Antibiotics, Cough and Cold Anti-Allergic medications, Antifungal treatments, Nutraceuticals, Analgesics, Antipyretics, Antacids, Antiemetics, Cardiac-Diabetic medicines, as well as skincare and cosmetic offerings.

 

 

IPO Overview

The upcoming SME IPO of Mono Pharmacare Limited is set to launch on the NSE SME platform. The Mono Pharmacare IPO date is scheduled from August 28 to August 30, 2023. The Mono Pharmacare IPO price is set between Rs.26 to Rs.28 per share.

Anticipated to be listed on September 8, 2023, the IPO holds a total issue size of Rs.14.84 Crores. Within this total issue, the company has allocated 45% to retail investors, another 45% to non-institutional investors, and the remaining 10% to institutional investors.

 

Mono Pharmacare Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	28 August 2023
IPO Closing Date	30 August 2023
IPO Allotment Date	4 September 2023
Refund initiation	5 September 2023
IPO Listing Date	7 September 2023

 

Mono Pharmacare Limited IPO Details

IPO Opening & Closing Date	28 August to 30 August 2023
Face Value	Rs. 10 per share
Issue Price	Rs. 26 to Rs. 28 per share
Lot Size	4000 Shares
Price of 1 Lot	Rs. 112,000
Issue Size	5,500,000 Shares (aggregating up to Rs.14.84 Cr)
Offer for Sale	NA
Fresh Issue	5,500,000 Shares (aggregating up to Rs.14.84 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt. Ltd.

 

Mono Pharmacare Limited IPO Lot Details

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

 

Mono Pharmacare Limited IPO Reservation

Institutional Share Portion	10%
Non-Institutional Share Portion	45%
Retail Share Portion	45%

 

Company Financial

Amount in Lakhs

Period	FY 20	FY 21	FY 22
Total Assets	871.70	1122.46	1438.31
Total Revenue	1168.90	2837.83	3710.27
PAT	1.99	9.51	35.09
Net Worth	201.92	369.58	427.57
Reserve & Surplus	633.46	608.03	643.93
Total Borrowings	1608.65	1795.46	1588.99

 

Contribution of the top 10 customers towards the revenue from operations:

Amount in Lakhs

Particulars	Revenue from operations	Revenue contribution of our top 10 customers
FY 23	4,585.83	3,304.88
FY 22	3,698.30	2,853.59
FY 21	2,826.61	2,422.87

 

Objective of the Issue

The company intends to employ the funds to achieve the following objectives:

• Fulfilling working capital needs.
• Addressing general corporate purposes.
• Covering the expenses related to the issue.

 

Promoters and Management of Mono Pharmacare Limited

Panilam Lakhatariya and Supal Lakhatariya are the key Promoters of our Company.

Pre-issue Promoters Holding	81.02%
Post-issue Promoters Holding

 

Peer Comparison

The following are the peers of the company as per the Mono Pharmacare DRHP.

Company Name	Revenue from operations (Rs. in Lakhs)	Diluted EPS (Rs.)	P/E Ratio
Mono Pharmacare Limited	5,847.64	1.99	-
Chandra Bhagat Pharma Limited	11,967.22	1.20	112.50

 

IPO's Valuations

Mono Pharmacare Limited's upcoming IPO is set to launch soon within a price range of Rs.26 to Rs.28 per share. The company currently maintains an EPS of Rs.1.99. Although the company has not specified the PE ratio, utilizing the upper band of the IPO price range indicates a PE ratio of approximately 14.

 

Dividend Policy

The company has not distributed dividends in the past, and there is no assurance of future dividend payments as well.

 

IPO's Strengths

• The company is led by experienced promoters and a management team possessing industry expertise and a proven track record.
• The business model is designed to be asset-light, and the company offers competitive products.
• The company's business model is capable of scalability.
• The company boasts an extensive and varied selection of product offerings.

 

IPO Weaknesses

• The company relies on third parties for manufacturing products.
• The company operates within a business model characterized by high volume and low margins.
• The major portion of the company's revenue is contributed by its top ten customers.
• The company is currently facing legal proceedings.
• As of March 31, 2023, the company holds unsecured loans amounting to ?1,584.45 lakhs, which the lenders can demand repayment of at any time.
• The Promoters and Directors possess interests in entities engaged in similar businesses, potentially leading to conflicts of interest.
• The company is obligated to secure and renew various registrations, licenses, approvals, NoCs, and permits.

 

 

IPO GMP Today

Mono Pharmacare limited IPO GMP is not yet available.

 

Conclusion

The upcoming IPO of Mono Pharmacare Limited offers investors a chance to participate in the pharmaceutical sector. While the company's business model is scalable, it operates within a high volume - low margin business framework. Potential investors might find this IPO worth considering; nevertheless, it is recommended to thoroughly analyze all factors before investing funds in this offering.

 

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 RHP

 

 

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