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Review By Dilip Davda on September 13, 2017
Vanta Bioscience Ltd. (VBL) is a preclinical contract research organization, offering a host of preclinical safety assessment services for clientele from Pharmaceutical, Medical Devices, Nutraceuticals, Feed Additive, Biotech, Agrochemicals, Cosmetics, and Chemical industries. In addition it also provides risk assessment services for evaluating the safety of the Active Pharmaceutical Ingredients (API), excipients, extractable and leachable including pharmaceutical impurities resulting due to manufacturing process or due to degradation of the product. VBL also provides expert services for determination of health based exposure limits (e.g. permitted daily exposure (PDE) or allowable daily exposure (ADE) including occupational exposure limits (OEL) for pharmaceutical manufacturers.
One of the major services of VBL is conducting variety of in vitro (cell, tissue and organisms) and in vivo (animal) toxicology studies for its diverse clients as per various regulatory requirements from across the world. Toxicology is a branch of biology, chemistry, and pharmacology concerned with the study of the adverse effects of chemicals on living organisms. It also studies the harmful effects of chemical, biological and physical agents in biological systems that establish the extent of damage in living organisms. The relationship between dose and its effects on the exposed organism is of high significance in toxicology. Toxicology and safety assessment are sometimes used interchangeably and considered as synonymous.
To part finance its additional working capital and general corpus fund needs, VBL is coming out with a maiden IPO of 1512000 equity share of Rs. 10 each at a fixed price of Rs. 50 per share to mobilize Rs. 7.56 crore. Issue opens for subscription on 25.09.17 and will close on 27.09.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Inventure Merchant Banker Services Pvt. Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Issue constitutes 26.40% of fully diluted post issue paid up equity capital of the company. Having issued initial equity at par, it issued further equity at a price of Rs. 50 per share. Post issue its current paid up equity capital of Rs. 4.22 crore will stand enhanced to Rs. 5.73 crore.
As the company has not carried any operations till 31.03.17, it has no track record of performance. Thus parameters on P/E and RoNW are not available. Due to issue at premium, it has some reserves on that count and on the basis of same the issue is priced at a P/BV of around 3. Issue is highly priced with no performance track record. It is trying to compare with Syngene, Sun Pharma and Suven Life as its peers.
On merchant banker’s front, this is the second mandate from its stable in past three years and the only listing that took place for Univastu marked erratic movement on the day of listing with opening at Rs. 48 against offer price of Rs. 40 and closed at Rs. 40.20 on the day of listing.
Conclusion: Simply avoid this issue as it has no track records.
Review By Dilip Davda on September 13, 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 Vanta Bioscience Ltd offers an early investment opportunity in Vanta Bioscience Ltd. A stock market investor can buy Vanta Bioscience IPO shares by applying in IPO before Vanta Bioscience Ltd shares get listed at the stock exchanges. An investor could invest in Vanta Bioscience IPO for short term listing gain or a long term.
Read the Vanta Bioscience IPO recommendations by the leading analyst and leading stock brokers.
Vanta Bioscience IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Vanta Bioscience IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Vanta Bioscience IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Vanta Bioscience IPO.
The Vanta Bioscience IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Vanta Bioscience IPO allotment status to check.
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