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Review By Dilip Davda on September 27, 2017
Beta Drugs Limited (BDL) is the part of Adley Group which has decades of experience in Pharma Industry. At BETA DRUGS, Oncology being one of the fastest growing therapy segments, sharp focus in the area is indeed a step in the right direction. BDL poised to be in the leadership position in Oncology and want to thrive in the segment through better technology in-licensing and innovations. BDL is a custom manufacturing and dedicated facility. Company’s Oncology unit dedicated to manufacturing of its leading anticancer cyto-toxics. It has achieved excellence in Formulations’ and Lypholization technology and strength in capacity building in sterile liquid ampule/vial, dry powder facilities and tablets and capsules unit.
BDL’s future focus is on self reliance in Biotech and Bio-similar segments, which are already initiated with the major business tie-ups with Reliance Life Sciences. Its first major launch is Pegfilgrastim (ADFILL), which is required in majority of cancer patients. Further, with the launch series of biosimilars like Rituximab, Trastuzumab, Bevacizumab , the group mulls crossing turnover of USD 2000 million by 2023. To achieve those targets, it is putting dedicated effort to start its own biotech. / Biosimilar productions and exports. BDL’s client list includes giants like Torrent Pharma, Zydus Group, Biochem, Alkem, Hetro Healthcare, RPG Life Sciences, Panacea Drugs etc.
To part finance purchase of new plants and machinery and up gradation of existing plants/machinery, obtaining of European Union GMP registration and pharmaceutical inspections, civil construction for existing manufacturing plants, general corpus fund needs, BDL is coming out with a maiden IPO of 2296000 equity share of Rs. 10 each with a fixed price of Rs. 85 per share to mobilize Rs. 19.52 crore. Issue opens for subscription on 29.09.17 and will close on 04.10.17. Minimum application is to be made for 1600 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Pantomath Capital Advisors Pvt. Ltd. and Link Intime India Pvt. Ltd. is the registrar to the issue. Issue constitutes 26.54% of the post issue paid up capital of the company. It raised equity at par from incorporation till November 2014. Thereaftrer it issued bonus shares in the ratio of 4.9 shares for every 1 share held in July 2017 and 394500 fresh shares at a fixed price of Rs. 74 per share in August 2017. Post issue, its current paid up equity capital of Rs. 6.34 crore will stand enhanced to Rs. 8.65 crore.
On performance front, BDL has posted turnover/net profits of Rs. 1.38 cr. / Rs. 0.02 cr. (FY14), Rs. 0.26 cr. / Rs. 0.11 cr. (FY15), Rs. 26.39 cr. / Rs. 1.13 cr. (FY16) and Rs. 41.68 cr. / Rs. 5.18 cr. (FY17). Thus for last two fiscals it has shown improving performance. It has reported an average EPS of Rs. 4.95 and average RoNW of 50.48% on an equity base of Rs. 1.01 crore. Issue is priced at a P/BV of around 5.24, If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of 14 plus against peers trading in the range of 22 to 46 P/Es. Thus issue is priced reasonably.
On merchant banker’s front, this is the 52nd mandate from its stable. Out of last 10 recent listings, 1 opened at discount, 1 at par and the rest with 1 to 18% premium on IPO price.
Conclusion: Considering reasonable pricing and prospects of healthcare industry going forward, investment may be considered for short to long term.
Review By Dilip Davda on September 27, 2017
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of Beta Drugs Limited offers an early investment opportunity in Beta Drugs Limited. A stock market investor can buy Beta Drugs IPO shares by applying in IPO before Beta Drugs Limited shares get listed at the stock exchanges. An investor could invest in Beta Drugs IPO for short term listing gain or a long term.
Read the Beta Drugs IPO recommendations by the leading analyst and leading stock brokers.
Beta Drugs IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Beta Drugs IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Beta Drugs IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Beta Drugs IPO.
The Beta Drugs IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Beta Drugs IPO allotment status to check.
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