Par Drugs and Chemicals IPO Review, Dates, Allotment, Subscription, GMP & DRHP

Let’s have a detailed review of the company and analytics of the Par Drugs and Chemicals IPO release date, IPO offer price, subscription, Par Drugs and Chemicals IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

Par Drugs and Chemicals is engaged in the development and manufacture of Active Pharma Ingredients (“APIs”) for the domestic market as well as for exports to international markets.


Par Drugs and Chemicals IPO Review & Ratings

IPO Ratings & Review
CriteriaRatings
Industry Sentiments7.5/10
Industry Ranking7.1/10
Company Background7.3/10
Company Reputation7.2/10
Competitive Edge7.7/10
Financial Statements7.1/10
Popularity Index7.4/10
Promoters Reputation7.7/10
Retail Appetite7.1/10
Top Brokers Review7.9/10
Overall Ratings7.4/10
Star Ratings★★★★☆

Summary of Par Drugs and Chemicals IPO

PAR DRUGS IPO PAR DRUGS AND CHEMICALS LIMITEDPar Drugs and Chemicals is engaged in the development and manufacture of Active Pharma Ingredients (“APIs”) for the domestic market as well as for exports to international markets. 

They supply the products to approximately 16 countries, including both direct and indirect exports. Their key customers include Pfizer Ltd., Cipla Ltd., Cadila Healthcare Ltd., Meyer Organics Pvt. Ltd., Dabur India Ltd.

From FY 2015-16 to FY 2017-2018, as per the Restated Financial Statements:

  • Revenues have decreased from Rs. 4,880.90 lakhs in FY 2016-17 to 4,241.65 lakhs in FY 2017-18. total revenues have grown at a CAGR of 12.86% from 3,330.37 lakhs for the financial year 2016 to 4.241.65 lakhs for the financial year 2018 and the restated profit for the year has grown at a CAGR of 88.28% from 42.18 lakhs for the financial year
    2016 to 149.53 lakhs for the financial year 2018.
  • The net asset value per Equity Share was Rs. 60.43 and Rs. 55.36 as of Sept 30, 2018 and March 31, 2018, respectively, as per the Restated Standalone Financial Statements.
  • The net worth of the company as on March 31, is  Rs. 3284.36 lakhs as per the Restated Ind AS Consolidated Summary Statement of Assets and Liabilities.
  • The net profit after tax was Rs. 184.78 lakhs in FY 2016-17 and Rs. 149.53 lakhs in FY 2017-18.

The Promoters of this company are Falgun Vallabhbhai Savani and Jignesh Vallabhbhai Savani. The lead manager to the issue is Pantomath Capital Advisors Private Limited and the Registrar to this issue is Link Intime India Private Limited.


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    Par Drugs IPO Dates

    The opening and the closing date of Par Drugs and Chemicals IPO is May 3, 2019 – May 8, 2019.


    Par Drugs and Chemicals IPO Subscription

    Day / DateNIIRIIEmployeeTotal Subscription
    1st Day – May 30.23x0.15x1.00x0.21x
    2nd Day – May 60.61x0.79x1.00x0.72x
    3rd Day – May 70.89x1.85x1.00x1.39x
    4th Day – May 83.48x7.97x1.00x5.74x
    Shares Offered or Net Issue778,000780,00030,0001,558,000

    The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


    Par Drugs and Chemicals IPO Allotment Status

    Here, you can find the Allotment Status of this IPO.


    Par Drugs IPO Price Band

    The face value of each share is Rs 10, but the price band of the IPO is Rs 51. 


    Par Drugs IPO Equity Share Offering

    Issue of Upto 17,00,000* Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs. 51/- per Equity Shareaggregating Rs. 850 lakhs.


    Par Drugs and Chemicals Limited – Company Overview

    Par Drugs and Chemicals Limited was originally incorporated as a “Par Drugs And Chemicals Private Limited” at Bhavnagar, Gujarat as a Private Limited Company under the provisions of the Companies Act, 1956 vide certificate of incorporation dated February 26, 1999. Subsequently, the Company was converted into a Public Limited Company pursuant to shareholders resolution passed at Extra-ordinary General Meeting of the Company held on October 24, 2018.

    Par Drugs and Chemicals is engaged in the development and manufacture of Active Pharma Ingredients (“APIs”) for the domestic market as well as for exports to international markets. APIs, also known as “bulk drugs” or “bulk actives” are the principal ingredient used in making finished dosages in the form of capsules, tablets, liquid, or other forms of dosage, with the addition of other APIs or inactive ingredients.

    They currently produce various range of Antacid Molecules which are available in the market and are in great demand. Their product portfolio presently comprises 12 APIs and 6 Fine Chemical which are marketed domestically and exported.

    Par Drugs Manufacturing Units:

    They currently own and operate two manufacturing facilities at Bhavnagar and Ankleshwar in the Gujarat. They currently have three Manufacturing Blocks at the Bhavnagar Facility for different products. Their Bhavnagar facility certified by food & drugs control administration.

    During the year 2011, they have added two manufacturing Block out of three at the Chitra, Bhavnagar facility. One is dedicated facility for the Main API and another one is for Fine Chemicals.

    Competitive Strengths of Par Drugs and Chemicals Limited:

    • Wide Product Range;
    • Global Presence;
    • Experienced Promoters;
    • Robust chemistry capabilities;
    • Diversified customer base;
    • Established sales and distribution network in Gujarat;
    • Established track record of delivering growth

    Business strategies of Par Drugs and Chemicals Limited:

    • Expand the product portfolio
    • Exploring new geographical area
    • Leveraging the market skills and relationship
    • Augment their working capital base in order to better utilize their installed capacities.
    • Continuing innovation, technology upgrade and cost improvements

    Par Drugs and Chemicals Limited – Financial Statements

    A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

    Financial Summary:

    Amount (in INR & lakhs)
    30-Sep-1831-Mar-1831-Mar-1731-Mar-16
    Total Assets5,565.095,393.895,604.145,803.08
    Total Revenue2,487.034,241.654,880.903,330.37
    Total Expense2,283.193,986.354,562.573,229.69
    Profit After Tax136.77149.53184.7842.18

    Earnings per Equity Share (in lakhs)

    30-Sep-1831-Mar-1831-Mar-1731-Mar-16
    Basic & Diluted5.075.546.841.56

    From the above statements, one could find that the Par Drugs and Chemicals Limited may perform well.


    Par Drugs IPO – Promoters

    The Promoters of this company are:

    • Falgun Vallabhbhai Savani
    • Jignesh Vallabhbhai Savani

    List of Related Parties (Key Managerial Personnel)

    • Chintan Pratapbhai Chauhan- Chief Financial Officer
    • Sanket Bhupendrabhai Trivedi- Company Secretary and Compliance Officer

    Interest in promotion of the Company

    Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

    Property Interest

    The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

    Interest in Intellectual Rights of the Company

    Promoters has not shown any interest in acquiring the intellectual rights of the company.


    Par Drugs IPO Offer Details or Par Drugs IPO Issue Details

    Particulars No. Of Equity Shares
     Equity Shares Offered Issue of Upto 17,00,000* Equity Shares of face value of Rs. 10/- each
    fully paid of the Company for cash at price of Rs. 51/- per Equity Share
    aggregating Rs. 850 lakhs
     Of which:
     Reserved for Market Makers Upto [●]* Equity Shares of face value of Rs. 10/- each fully paid of the
    Company for cash at price of Rs [●]/- per Equity Share aggregating Rs.
    [●] lakhs
    Employee Reservation PortionUpto [●]* Equity Shares of face value of Rs. 10/- each fully paid of the
    Company for cash at price of Rs [●]/- per Equity Share aggregating Rs.
    [●] lakhs
    Net Issue to the PublicUpto [●]* Equity Shares of face value of Rs. 10/- each fully paid of the
    Company for cash at price of Rs. [●]/- per Equity Share aggregating Rs.
    [●] lakhs
     Of which:
     Retail Investors Portion Upto [●]* Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs. [●]/- per Equity Share aggregating Rs. [●] lakhs will be available for allocation for allotment to Investors of
    up to Rs. 2.00 lakhs
     Non-Retail Investors PortionUpto [●]* Equity Shares of face value of Rs. 10 /- each fully paid of the Company for cash at price of Rs. [●]/- per Equity Share aggregating Rs. [●] lakhs will be available for allocation to investors above Rs. 2.00
    lakhs
     Equity Shares outstanding prior to the Issue44,80,318 Equity Shares
     Equity Shares outstanding after the IssueUpto 61,80,318* Equity Shares of face value of Rs. 10 each

    Par Drugs and Chemicals IPO Issue Object

    These are the IPO Issue Objects of the company

    • Funding the Working Capital requirements of the Company:
    •  Repayment/ pre-payment of certain unsecured loans availed from banks and financial institutions by the company

    Par Drugs and Chemicals IPO – Basis of the Offer Price

    The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

    Qualitative factors are:

    • Wide Product Range;
    • Global Presence;
    • Experienced Promoters;
    • Robust chemistry capabilities;
    • Diversified customer base;
    • Established sales and distribution network in Gujarat;
    • Established track record of delivering growth

    The relevant quantitative factors are:

    Basic & Diluted EPSRONW in %NAV (Rs.)
    31-Mar-161.563.63
    31-Mar-176.8413.73
    31-Mar-185.5410.00
    55.36
    • Price to Earnings (P/E) ratio in relation to Issue Price of [●] per Equity Share of face value of Rs. 10 each
    ParticularsP/E ratio
    Highest21.71
    Average14.88
    Lowest1.77

    Competitive Peers of Par Drugs:

    Sr. No. ParticularsFace Value  (in Rs.)Basic EPS (In Rs.)Diluted EPS (In Rs.)P/E RatioRONW (%) NAV (In Rs.)
    1Par Drugs &
    Chemicals Limited
    105.545.54[●]10.0055.36
    2Aarti Drugs
    Limited
    1030.6730.6721.7116.95183.69
    3Shilpa Medicare
    Limited
    116.6816.6821.1511.52141.91
    4Vasundhara
    Rasayans Limited
    1020.5120.511.7747.4643.22

    Par Drugs and Chemicals IPO Lead Managers

    Lead Managers
    PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED
    406-408, Keshava Premises, Behind Family Court, Bandra Kurla
    Complex, Bandra East, Mumbai – 400 051, Maharashtra, India
    Tel: +91-22 6194 6700; Fax: +91-22 2659 8690
    Website: www.pantomathgroup.com
    Email: ipo@pantomathgroup.com
    Investor Grievance Id: ipo@pantomathgroup.com
    Contact Person: Hardik Bhuta / Unmesh Zagade
    SEBI Registration No: INM000012110

    Par Drugs and Chemicals IPO Registrar to offer

    Registrar to the Offer
    LINK INTIME INDIA PRIVATE LIMITED
    C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli (West),
    Mumbai – 400 083, Maharashtra, India
    Tel: +91 22 4918 6200; Fax: +91 22 4918 6195
    Website: www.linkintime.co.in
    Email: gensol.ipo@linkintime.co.in
    Investor Grievance Id: gensol.ipo@linkintime.co.in
    Contact Person: Shanti Gopalkrishnan
    SEBI Registration Number: INR000004058

    Par Drugs IPO – Other Details:

    • Statutory Auditor – M/s. V Dhamsania & Associates
    • Peer Review Auditor – M/s. V Dhamsania & Associates
    • Bankers to the Company – Kotak Mahindara Bank

    Par Drugs and Chemicals IPO Review by Top 10 Stock Brokers

    Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
    Angel Broking7.5/107.4/108.5/108.1/107.1/10
    Sharekhan7.2/107.1/108.6/108.1/107.2/10
    Kotak Securities7.3/107.5/108.4/108.1/107.3/10
    ICICI Direct7.3/107.3/108.7/108.1/107.1/10
    IIFL7.5/107.2/108.8/108.0/107.1/10
    Edelweiss7.5/107.4/108.4/108.3/107.2/10
    Zerodha7.4/107.1/108.5/108.1/107.0/10
    5Paisa7.1/107.1/108.4/108.1/107.1/10
    Karvy7.4/107.3/108.2/108.1/107.1/10
    Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

    Par Drugs and Chemicals IPO Grey Market Premium

    The Par Drugs and Chemicals IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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      Par Drugs and Chemicals IPO News

      News 1 – IPO ISSUE OPENS SOON [Download Prospectus]


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