Vijaya Diagnostic Centre v/s Ami Organics Limited

S. No.

Basis

Vijaya Diagnostic Centre

Ami Organics Limited

1.

IPO Dates

Open: 1^st  September, 2021

Closes : 3^rd September, 2021

Open: 1^st  September, 2021

Closes : 3^rd September, 2021

2.

IPO Price Band

3.

Public Issue Details

The IPO is a complete offer for sale of up to 35.68 million shares by the promoter and investors upto

• 5.09 million shares by promoter S Surendranath Reddy,
• 29.48 million shares by investor Karakoram, and
• 1.1 million shares by Kedaara Capital Alternative Investment Fund

IPO comprises a fresh issue of Rs. 200 crore and an offer for sale of up to 60,59,600 equity shares by 20 selling shareholders including :-

• Parul Chetankumar Vaghasia,
• Girishkumar Limbabhai Chovatia,
• Kiranben Girishbhai Chovatia, and
• Aruna Jayantkumar Pandya.

4.

Objective of Issues

The Company will not get any funds as the IPO is entirely an offer for sale.

All the money, after deducting issue expenses, will go to the selling shareholders.

The Company will not get any funds as the IPO is entirely an offer for sale.

The net proceeds from the fresh issue and the funds from the pre-IPO placement will be utilized to repay debts (Rs 140 crore), working capital requirements (Rs 90 crore), and general corporate issues.

5.

Lot Size

Retail investors:

minimum of 28 shares and in multiples of 28 shares thereafter. They can invest a minimum of Rs 14868 per lot and a maximum of Rs. 1,93,284 for 13 lots.

Investors :

minimum of 24 equity shares and in multiples of 24 equity shares thereafter.

Retail investors:

minimum of Rs 14,640 worth of shares in a single lot, and the maximum investment would be Rs 1,90,320 for 13 lots.

6.

Investor Reserved Portions

Qualified Institutional Buyers: Half of the offered size

Non-institutional bidders :15%

Retail Investors: remaining 35%

Qualified Institutional Buyers:

Half of the offered size

Non-institutional bidders :15%

Retail Investors: remaining 35%

7.

Highlights of the Company

• Largest integrated diagnostic chain in southern India by operating revenue.

• One of the fastest – growing diagnostic chains by revenue for FY 20.

• Offers pathology and radiology testing services through 81 centres and 11 reference laboratories across 13 cities and towns in Telangana and Andhra Pradesh as well as in the National Capital Region and Kolkata.

• Offers a comprehensive range of about 740 routine and 870 specialized pathology tests and 220 basic and 320 advanced radiology tests covering a range of specialties and disciplines.

• Its individual consumer business contributed to 92 percent of revenue from operations in FY21.

• Manufacturers of specialty chemicals that are used towards the development and manufacturing of advanced pharmaceutical intermediates for regulated and generic active pharmaceutical ingredients (APIs) and New Chemical Entities (NCE), and key starting material for agrochemical and fine chemicals.

• One of the major manufacturers of pharma intermediates for certain key APIs, including Dolutegravir, Trazodone, Entacapone, Nintedanib, and Rivaroxaban.

• Developed and commercialized over 450 pharma intermediates for APIs across 17 key therapeutic areas since inception and NCE.

• Along with the domestic market, the company also supplies pharma intermediates to various multi-national pharmaceutical companies in large and fast-growing markets of Europe, China, Japan, Israel, the UK, Latin America, and the US.

• In FY21, exports contributed 51.57 percent to total revenue.

8.

Industry Outlook

The Indian diagnostics market was valued at Rs 71,000 crore to Rs 73,000 crore in FY21 and is projected to expand at a CAGR of 12-13 percent to Rs 92,000-98,000 crore by FY23

These figures are driven by a rise in health awareness and disposable incomes, increase in demand for better healthcare facilities and quality of care, and an increase in spending on preventive healthcare and wellness.

The diagnostics market in Telangana and Andhra Pradesh, the states in which it has a significant presence, is projected to grow to Rs 12,000-13,000 crore by FY23.

The Indian chemicals market was valued at $166 billion (around 4 percent share in the global chemical industry) in 2019. It is expected to reach around $326 billion by 2025, with an anticipated growth of around 12 percent CAGR. The specialty chemical industry forms around 47 percent of the domestic chemical market, which is expected to grow at a CAGR of around 11-12 percent by 2025.

India’s specialty chemical companies are gaining favour with global MNCs because of the geopolitical shift after the outbreak of Covid-19 as the world looks to reduce its dependence on China.

9.

Strengths

• Fastest growing diagnostic chain holding a dominant position in South India.

• Well-positioned to leverage the high growth in India’s diagnostics segment.

• High brand recall, driving high individual consumer business share and customer stickiness.

• Consistent profitable growth, with strong cash generation and return metrics.

• Dedicated management team with significant experience.

• Strong and diversified product portfolio backed by strong R&D and process chemistry skills;

• Wide geographical presence and diversified customer base with long-standing relationships;

• High entry barriers in the chemicals manufacturing industry;

• Strong sales, marketing and distribution capabilities;

• Dedicated management team with significant experience.

• Strong balance sheet with stable cash flows.

10.

Financials

Profit in Q1 of FY22 increased to Rs 33.32 crore from Rs 1.8 crore a year earlier while there has been a jump in revenue from Rs 51.71 crore to Rs 122.68 crore.

The company’s profit has grown consistently to Rs 84.91 crore in FY21 from Rs 62.5 crore in FY20 and Rs 46.3 crore in FY19.