Eris Lifesciences Limited IPO Message Board (Page 26)

GMP 72-75

This IPO is highly priced. First of all Pharma stocks are not the flavour of the current market. Secondly much Larger and reputed companies are available in the market at much lower PE and at or near their 52 week lows. Also The FV of the share is Only Re.1

valuation of the IPO is very high despite of the fact that market of the company is not dependent on US market and its regulatory hurdles Quality standards of FDA can not be compared with drug control of india where paracetamol is available from 20 paise to 2Rs and one is still not sure of its action.B complex capsule containing haldi powder..working style of drug Drug inspectors and drug control/food control is not hidden,in this country of extra honest law making and implementing leaders and officers.Companies suppying to US are also have their market inside in better organised manner than eris.Products of eris deals within a limited area of life style disorders or NCD .There is growing trend to control these NCDs from natural sources like food and exercise including yoga and time is not far away when people will realise the disadvantage of therapeutic molecules in prevention and cure of NCDs.Looking after this future development in the field of the management of NCDs in which the company markets its brands its future is not looking very good

Dear DJPV ,as per your comments will be better. So, more power to you and people like you!

Ell gmp

APPLY in this IPO

Good company Debt free plus sale is in local market , so no U S FDA worry ,

with markets going down , slightly priced higher

AKH
Thank you for hiding my comment.

You said to buy at 550. What difference it makes if buying price is 550 or 650 for a high growth company. The view is for long term and not listing gains.

I bought PNB housing at 1100 after IPO listing. Does it matter.

AKH:
Humble request. Please don''t ask me questions. I like questions from sensible analyst. Henceforth I won''t reply you.

@KRB Sir
Its open forum, anyone who don''t have knowledge wish to ask questions.
Apologies for my silly question
.

You Guyss Just understand the TRAP..
Keeping​ Premium in Mind​
It started at 165 ( Buyers in ) and then fell to 140 (sellers increase )... Then again Gmp dropped to 111 and after one day it again went down to 81 and now Today its almost 52 .. so Investors please beware before you loose..
Also the Face Value is Rs 1 and price band 600 - 603 assuming face value to be 10 then share comes at 6000 which is highly overpriced..
Earlier​ it was stated somewhere that EPS ( earning ler share ) is 9.63 which is only one thing good with this IPO.
Enjoy Avoiding.

Apply Or Avoid ?

Current GMP Please.....

ERIS LIFESCIENCES GMP TODAY

Analysis of upcoming IPO of Eris Lifesciences has been loaded on www.sptulsian.com.
https://www.sptulsian.com/free-zone/ipo-analysis
IPO Analysis: Eris Lifesciences
Verdict: Excellent Eris

Eris Lifesciences is entering the primary market on Friday 16th June 2017, with an offer for sale (OFS) of up to 2.89 crore equity shares of Re. 1 each by PE firm ChrysCapital (77% of OFS), promoters and other shareholders in the price band of Rs. 600 to Rs. 603 per share. Representing 21% of the post issue paid-up share capital, issue will raise Rs. 1,741 crore at the upper end and close on Tuesday, 20th June. Listing is expected on 29th June.



Ahmedabad based Eris Lifesciences is a branded generic selling pharma company, focusing on lifestyle related disorders in the high margin therapeutic areas of cardiovascular, anti-diabetics, vitamins, gastro-enterology and anti-infectives. With 1,500 marketing representatives, share of metros and class 1 towns is 77% of its total revenue of Rs. 725 crore. With strong brands (80 mother brand groups) having superior lifecycle profile (73% brands in high growth segment against 31% for Indian pharma market), product portfolio is tilted towards chronic side (66% against 34% for Indian pharma market) with high prescription share of specialists and super specialists (96% against 62% for Indian pharma market).



Company’s financials have been simply excellent, to say the least. Over 4 years between FY13-17, revenue has clocked 17% CAGR, while EBITDA and PAT 35% and 43% CAGR respectively. FY17 financials growth was partly supported by 2 acquisitions – Rs 77 crore buy of 75% in Kinedex Healthcare catering to mobility related disorders (Dec 2016) with annual turnover of Rs. 83 crore, and Rs. 38 crore buy of Amay Pharma’s 40 brands and ApricaPharma focussed on cardiovascular and anti-diabetics segments (July 2016) clocking Rs. 19 crore in FY17 sales.



While FY17 revenue grew 21% YoY to Rs. 725 crore, EBITDA jumped 65% to Rs. 288 crore, as margin strengthened a whopping 1,040 basis point (yes 10.40%!) to 39.7% from FY16’s 29.3% on account of lower input costs (200 bps) and operational leverage kicking-in. Being debt free, there is hardly any interest outgo, with PBT of Rs. 264 crore, up 71% in FY17 and PAT at Rs. 241 crore, up 79% YoY, leading to an EPS of Rs. 17.61. Pursuant to Sept 2016 99:1 bonus issue and stock split from face value 10 to 1, current equity is still low at Rs. 13.75 crore.



While the company’s growth since its inception 10 years ago is marvellous, what is commendable is that it did not require any external funding to fuel the same. The PE transaction in Aug 2011 (which is exiting via the OFS) was a secondary sale by promoters. Creating a Rs. 8,000 crore plus company from scratch is no mean feat! PE firm ChrysCapital, holding 16.25% stake since 7 years, at effective cost of Rs. 87 per share, will make a complete exit, at an IRR of 39%.

As as 31-3-17, on net worth of Rs. 540 crore, company has a debt free balance sheet. Surplus cash and equivalents are Rs. 261 crore, translating into cash per share of Rs. 19. Currently, company has only 9 shareholders – 5 promoters with combined holding of 59.18%, whose stake, post IPO will shrink to 55.93%. Besides ChrysCapital’s 16.25%, 3 individuals own 24.57%, who will own 23.07% post IPO.



At Rs. 603 per share, company’s market cap will be Rs. 8,291 crore and EV Rs. 8,031 crore, which discounts historic FY17 earnings by EV/EBITDA and PE multiples of 28x and 34x respectively. Factoring in 20% growth for FY18, the upper end of the price band leads to EV/EBITDA multiple of 23x and PE multiple of 28x, which is slightly on the higher side. However, given the unique opportunity, the pricing appears reasonable, as peers are either delivering high growth but earning lower margins, or some are facing severe headwinds on their exports business.



Rarely one comes across business delivering 49% RoCE and 45% RoE, which is definitely unheard of in the pharma sector. Since Eris earns zero revenue from exports, it is immune from US FDA issues plaguing Indian pharma currently. This is a big distinguishing factor vis-à-vis peers. Moreover, it enjoys tax break (under Income Tax Act, which will continue post GST) till FY24 on its sole manufacturing facility at Guwahati, Assam, which accounts for 78% of sales. Balance 22% of sales is outsourced to contract manufacturers. Hence, effective tax rate for company was very low at 8.3% in FY17 and 12.7% in FY16.



Very strong fundamentals, expected healthy growth, cash rich status, no US FDA overhangs make this issue an ‘apply’, despite uneconomical pricing.



Disclosure: No Interest.

What about the promoter took away all the cash in the form of dividend in fy16 and invested remaining cash in mutual funds.

Company''s main business is pharma and promoters are investing cash surplus in mutual funds

Discount : Rs 60 per Equity Share to Retail and Eligible Employee category only.

No...
There is no retail discount.

Eris Life:
GMP: 52-54

Yes,
NSC Site correct data.
No discount to Retail.

No discount to Retailors. It might be uploaded wronghly on NSE website. Now, it is corrected.

This message has been removed by a moderator.

😣 How careless is NSE 😝😭 !
FIRST shows us dreams and now nightmares in day . At 603 now it seems risky . Looks like avoidable.

To bhanu prasanth

At 2 pm by mistake NSE had written retail category also in its discount box along with eligible employees and now they have rectified to eligible employees only. So no discount to us.Kindly discard all my above messages.

Sir

Good Morning

Eris life sciences application kya rate sale ho rahi hai

0000

what is gmp as on date

dear eris 115 bpo future ??
globe textiles gmp 7 fundamentally good

Respected Septa Sir,
I hope that you have gone through the RHPs of Eris Lifesciences. Please suggest us that should we apply or not.

Free Float Money Rs 200,000 crores:

Issue Size Oversubs Total Money Blocked

GTPL Hathway 300 crores 5 1,500
Eric Life 1750 20 35,000
Tejas 450 10 2,400
CDSL 400 400 1, 60,000

Though this in itself is not the money making formula. This has to be further refined in terms of NII /RII allocations and Nifty levels. If Nifty slides 5% , the money collections drop by 15%.

Eris LifeSciences IPO
GMP 111 – 113

Should we apply mam

Apply for sure for the IPO, Sought to be 5X subscription approx.

Promoter spent 250 crores in fy16 for
- payment of dividend and DDT Rs60.42 per share (after considering stock split and bonus in fy16)
- investment in mitual funds

No doubt company comoany''s earning data is good but there is no option of applying for benefits of greedy promoters.

One may invest when it available near 550

Eris LifeSciences IPO
GMP 81 – 85

Apply Or Avoid ?

Apply