Amanta Healthcare IPO: A Comprehensive Outlook
The Indian stock market is abuzz with new opportunities, and Initial Public Offerings (IPOs) often capture significant attention from investors looking for growth prospects. We delve into the details of the upcoming Amanta Healthcare IPO, a pharmaceutical company making its debut on the exchanges. Understanding the intricate aspects of an IPO, from the company's fundamentals to the offering specifics, is crucial for making informed investment decisions. Let’s explore what Amanta Healthcare brings to the table.
About Amanta Healthcare Limited: A Pharmaceutical Innovator
Amanta Healthcare Limited, established in December 1994, is a prominent pharmaceutical company specializing in sterile liquid products. Their expertise lies in developing, manufacturing, and marketing parenteral products, primarily packaged using advanced Aseptic Blow-Fill-Seal (ABFS) and Injection Stretch Blow Moulding (ISBM) technologies. Beyond pharmaceuticals, the company also operates in the medical devices segment.
Their diverse product portfolio includes:
- Fluid therapy formulations (IV fluids, diluents, ophthalmic solutions, respiratory care products).
- Medical devices such as irrigation solutions, first-aid products, and eye lubricants.
With a robust presence, Amanta Healthcare distributes over 45 generic products under its own brands in India through a network of 320 distributors and stockists. Globally, their products are registered in 19 countries, with branded exports reaching 21 countries across Africa, Latin America, and the UK in Fiscal 2025. The company boasts a dedicated team of 1,718 employees as of March 31, 2025, contributing to its formulation, development, and quality control efforts.
Amanta Healthcare's Initial Public Offering (IPO) at a Glance
The Amanta Healthcare IPO is a book build issue designed to raise substantial capital for the company's strategic growth initiatives. Here's a snapshot of the key offering details:
| Detail | Information |
|---|---|
| IPO Type | Main-board, Book Building Issue |
| Issue Size | ₹126.00 Crores |
| Total Shares Offered | 1,00,00,000 equity shares |
| Face Value per Share | ₹10 |
| Price Band | ₹120 to ₹126 per share |
| Issue Structure | Entirely a Fresh Issue |
| Listing Exchanges | BSE, NSE |
| Market Capitalization (Post-IPO) | ₹489.25 Crores |
Important Dates for Investors
Understanding the IPO timeline is crucial for prospective investors to plan their applications and track the post-listing process.
Open Date
Close Date
Allotment
Credit Shares
Listing Date
| Event | Date |
|---|---|
| IPO Opening Date | Monday, September 1, 2025 |
| IPO Closing Date | Wednesday, September 3, 2025 |
| Tentative Allotment Finalization | Thursday, September 4, 2025 |
| Initiation of Refunds | Monday, September 8, 2025 |
| Credit of Shares to Demat Account | Monday, September 8, 2025 |
| Tentative Listing Date | Tuesday, September 9, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 3, 2025 |
Investor Allocation and Lot Size
The IPO is structured to allow participation from various investor categories, each with specific reservation percentages and application lot sizes.
Investor Category Reservation
| Investor Category | Shares Offered |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50.00% of the Net Issue |
| Retail Individual Investors (RII) | Not less than 35.00% of the Net Issue |
| Non-Institutional Investors (NII) | Not less than 15.00% of the Net Issue |
Application Lot Sizes
Investors can bid for a minimum of 119 shares and in multiples thereof. The minimum and maximum investment details for different investor types are as follows:
| Investor Category | Lots (Min) | Shares (Min) | Amount (Min) | Lots (Max) | Shares (Max) | Amount (Max) |
|---|---|---|---|---|---|---|
| Retail Individual Investor (RII) | 1 | 119 | ₹14,994 | 13 | 1,547 | ₹1,94,922 |
| Small High Net Worth Individual (S-HNI) | 14 | 1,666 | ₹2,09,916 | 66 | 7,854 | ₹9,89,604 |
| Big High Net Worth Individual (B-HNI) | 67 | 7,973 | ₹10,04,598 | - | - | - |
*Note: Maximums for S-HNI are illustrative, B-HNI has no upper limit on investment through the IPO.*
Promoters and Shareholding
The leadership behind Amanta Healthcare plays a crucial role in its journey. The company's promoters are Bhavesh Patel, Vishal Patel, Jayshreeben Patel, Jitendra Kumar Patel, and Milcent Appliances Private Limited. Their pre and post-issue shareholding reflect the equity dilution as a result of this public offering.
| Shareholding Stage | Percentage (%) |
|---|---|
| Pre-Issue Shareholding | 85.60% |
| Post-Issue Shareholding | 63.56% |
Financial Health Check: Performance Overview
Analyzing the company's financial performance provides critical insights into its operational efficiency and growth trajectory.
| Period Ended | 31 Mar 2025 (₹ Cr) | 31 Mar 2024 (₹ Cr) | 31 Mar 2023 (₹ Cr) |
|---|---|---|---|
| Assets | 381.76 | 352.12 | 374.06 |
| Total Income | 276.09 | 281.61 | 262.70 |
| Profit After Tax (PAT) | 10.50 | 3.63 | -2.11 |
| EBITDA | 61.05 | 58.76 | 56.31 |
| Net Worth | 96.39 | 66.29 | 62.88 |
| Reserves and Surplus | 67.56 | 39.46 | 36.05 |
| Total Borrowing | 195.00 | 205.23 | 215.66 |
Key observations from the financials:
- Revenue saw a slight decrease of 2% from March 2024 to March 2025.
- However, the Profit After Tax (PAT) surged impressively by 189% in the same period, indicating improved profitability and operational efficiency.
- The company has successfully reduced its total borrowings year-on-year from 2023 to 2025.
Key Performance Indicators (KPIs)
Further evaluating the company's efficiency and valuation metrics.
| KPI (as of March 31, 2025) | Value |
|---|---|
| Return on Equity (ROE) | 12.42% |
| Return on Capital Employed (ROCE) | 13.72% |
| Debt/Equity Ratio | 2.02 |
| Return on Net Worth (RoNW) | 10.89% |
| Profit After Tax (PAT) Margin | 3.86% |
| EBITDA Margin | 22.11% |
| Price to Book Value | 3.77 |
Valuation Metrics:
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| EPS (Rs) | 3.64 | 2.70 |
| P/E (x) | 34.59 | 46.59 |
*Note: Pre-IPO EPS is based on pre-issue shareholding and FY2025 earnings. Post-IPO EPS is based on post-issue shareholding and annualized FY2025 earnings.*
Purpose of the Public Offering: Issue Objectives
The net proceeds from Amanta Healthcare's IPO are earmarked for strategic capital expenditures and general corporate needs, aiming to fuel future growth and expansion.
- Funding Capital Expenditure (SteriPort Line): Approximately ₹70.00 crores will be utilized for civil construction work, as well as the purchase of equipment, plant, and machinery to establish a new manufacturing line for SteriPort products at Hariyala, Kheda, Gujarat.
- Funding Capital Expenditure (SVP Line): An estimated ₹30.13 crores is allocated for civil construction work, equipment, plant, and machinery for setting up a new manufacturing line for SVP (Small Volume Parenterals) also at Hariyala, Kheda, Gujarat.
- General Corporate Purposes: The remaining funds will be used for various general corporate purposes, supporting the company's ongoing operations and strategic initiatives.
Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis
A comprehensive SWOT analysis helps to understand Amanta Healthcare's internal capabilities and external market dynamics.
Strengths
- Established Presence: A well-regarded manufacturer of pharmaceutical formulations with a long operational history since 1994.
- Diverse Product Portfolio: Specialization in sterile liquid parenteral products (IV fluids, ophthalmic, respiratory care) and medical devices caters to broad healthcare needs.
- Robust Manufacturing Capabilities: Utilizes advanced ABFS and ISBM technologies, indicating efficiency and quality in production.
- Extensive Market Reach: Wide domestic distribution network (320 distributors) and international presence across 19 countries, with exports to 21 countries.
- Experienced Management: Supported by a large, diverse, and skilled workforce, suggesting strong leadership and operational execution.
- Improved Profitability: Significant rise in PAT (189%) from FY2024 to FY2025 despite a slight revenue dip, showcasing strong cost management or higher-margin product focus.
Weaknesses
- Revenue Fluctuation: A marginal decrease in total income from FY2024 to FY2025 could indicate market pressure or specific product challenges.
- High Debt-to-Equity Ratio: A debt-to-equity ratio of 2.02, while improved, is still relatively high, which could be a concern for some investors regarding financial leverage.
- Dependence on Specific Technologies: While ABFS and ISBM are strengths, over-reliance on a few core technologies might pose risks if market preferences shift rapidly.
- Competitive Market: The pharmaceutical and medical device sectors are highly competitive, requiring continuous innovation and market adaptation.
Opportunities
- Expansion of Manufacturing: The IPO proceeds dedicated to new manufacturing lines (SteriPort and SVP) will significantly boost production capacity and product offerings.
- Growing Healthcare Demand: The increasing global demand for sterile liquid formulations and medical devices, particularly in emerging markets where Amanta has a presence.
- Product Diversification: Potential to introduce more specialized products or enter new therapeutic areas based on existing manufacturing capabilities.
- Market Penetration: Further deepening penetration in existing international markets and exploring new geographies for exports.
- Technological Advancement: Continuous investment in R&D and manufacturing technology can enhance competitive edge and efficiency.
Threats
- Regulatory Changes: Strict and evolving regulatory frameworks in pharmaceutical and medical device industries both domestically and internationally.
- Intense Competition: Presence of established national and international players in both pharmaceutical and medical device segments.
- Raw Material Price Volatility: Fluctuations in the cost of raw materials and packaging components can impact profit margins.
- Exchange Rate Fluctuations: As an exporter, currency volatility could affect international revenues and profitability.
- Economic Slowdown: General economic downturns could impact healthcare spending and demand for non-essential medical products.
Supporting Details: Lead Managers, Registrar, and Contact Information
For procedural and operational aspects of the IPO, it is essential to know the key intermediaries involved.
Lead Manager
Beeline Capital Advisors Pvt.Ltd. will serve as the book running lead manager for the Amanta Healthcare IPO. Lead managers play a vital role in the IPO process, from drafting the prospectus to marketing the issue.
Registrar
The registrar for the IPO is MUFG Intime India Pvt.Ltd. The registrar is responsible for processing applications, managing the allotment process, and handling refunds.
Registrar Contact Details:
- Phone: +91-22-4918 6270
- Email: amantahealthcare.ipo@linkintime.co.in
Company Contact Information
For any direct inquiries regarding Amanta Healthcare Ltd.:
- Address: 8th Floor, Shaligram Corporates, C.J. Marg, Ambli, Ahmedabad, Gujarat, 380058
- Phone: 079 67777600
- Email: cs@amanta.co.in
- Website: www.amanta.co.in
Conclusion: Evaluating the Opportunity
The Amanta Healthcare IPO presents an opportunity to invest in an established pharmaceutical company with a strong focus on sterile liquid products and medical devices. The company's consistent growth in profitability, strategic expansion plans funded by the IPO, and wide market reach are notable strengths.
However, potential investors should also consider the competitive landscape, the company's financial leverage, and the inherent risks of the pharmaceutical sector. Thorough due diligence, including a careful review of the Red Herring Prospectus (RHP), and consulting with a financial advisor are recommended before making any investment decisions. As the IPO dates approach, market sentiment and subscription trends will provide further insights into this offering.