Medicamen Organics IPO: Important Dates, Reviews, Price, and Allotment

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Medicamen Organics, a company that makes pharmaceutical dosages, has just launched its IPO (Initial Public Offering) to raise ₹10.54 crore. Let’s break down the key details you need to know about this IPO. In this article, you will get to know about Medicamen Organics IPO 2024, including key dates, price bands, allotment details, and expert reviews. Know the financial performance and growth potential of this pharmaceutical manufacturer.

Medicamen Organics IPO

Company Background

Medicamen Organics was established in the early 1990s and is known for its high-quality pharmaceutical products. The company is ISO 9001:2015 certified, which means they follow strict quality management systems. They have 84 products sold worldwide and have approvals for manufacturing in countries like Congo, the Philippines, and Kenya. Their facilities in Haridwar are also WHO GMP approved, ensuring high standards.

IPO Details

Here are the important dates and information about the IPO:

  • Open Date: June 21, 2024
  • Close Date: June 25, 2024
  • Price Band: ₹32 – ₹34 per share
  • Minimum Lot Size: 4,000 shares
  • Minimum Investment: ₹1,28,000 (at lower price band) or ₹1,36,000 (at upper price band)
  • Issue Size: ₹10.54 crore, with 31,00,000 shares offered

The expected listing date on the NSE SME platform is June 28, 2024.

Use of Proceeds

The funds from the IPO will be used for several purposes:

  1. Product Registration in International Markets: To expand their product approvals globally.
  2. Upgrading Manufacturing Facilities: To improve their Haridwar plants.
  3. Increasing Production Capacity: To meet growing demand.
  4. Boosting Working Capital: To support day-to-day operations and future growth.
  5. General Corporate Purposes: To cover other necessary expenses.

Financial Performance

Medicamen Organics has shown good financial performance, with profit margins improving to 9.51% in the first half of FY24. However, their revenue growth has been steady without significant increases. The price-to-earnings (P/E) ratio is 16.51, which some analysts think is a bit high compared to the company’s current earnings.

Review and Analysis

Analyst Opinions on Pricing

Analysts have mixed feelings about the IPO price. While the improved profit margins are positive, the high P/E ratio suggests the shares might be priced a bit steeply. Investors should consider whether the company’s future growth justifies the price.

Growth Potential and Risks

Medicamen Organics has good growth potential due to its plans to expand internationally. However, there are risks like market volatility, regulatory challenges in new markets, and competition which could affect profit margins.

Subscription Status

As of June 21, 2024, here’s the subscription status:

  • Retail Investors: Subscribed 2.63 times
  • Qualified Institutional Buyers (QIB): Not yet subscribed (0.00 times)
  • Non-Institutional Investors (NII): Subscribed 0.55 times

This shows strong interest from retail investors but not much from institutional investors yet.

Listing Information

Medicamen Organics is expected to be listed on the NSE SME platform on June 28, 2024. This will allow investors to trade the shares on the stock market.

Investor Considerations

Benefits

  1. Growth Opportunities: Expanding into international markets can boost revenue.
  2. Quality Credentials: ISO and WHO GMP certifications enhance credibility.
  3. Solid Market Presence: Established presence in both domestic and international markets.

Potential Risks

  1. Market Volatility: Stock prices can be affected by market fluctuations.
  2. Regulatory Challenges: Meeting regulatory requirements in new markets can be difficult.
  3. Competitive Pressure: Increased competition in the pharmaceutical industry may impact profitability.

Medicamen Organics’ IPO

Medicamen Organics’ IPO offers an interesting opportunity for investors, especially those interested in a growing pharmaceutical company with international plans. Although the pricing might seem high, the company’s strategies and quality credentials suggest good growth potential. As always, investors should do thorough research and consider their risk tolerance before investing.

FAQs

1. What is the IPO price band for Medicamen Organics?

  • The IPO price band is ₹32 – ₹34 per share.

2. When will the IPO close?

  • The IPO will close on June 25, 2024.

3. What will the raised funds be used for?

  • The funds will be used for product registration in international markets, upgrading manufacturing facilities, increasing production capacity, boosting working capital, and general corporate purposes.

4. How has the market responded to the IPO?

  • As of June 21, 2024, retail investors have shown strong interest, subscribing 2.63 times, while institutional investors have not yet subscribed.

5. What are the potential risks of investing in this IPO?

  • Potential risks include market volatility, regulatory challenges, and competitive pressure in the pharmaceutical industry.

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