The pharmaceutical company Amanta Healthcare is gearing up for Dalal Street with its Rs 126 crore initial public offering (IPO). The IPO is set to open on September 1, and will close its three-day bidding on September 3. Before the subscription window begins, let’s take a look at the key details every investor should know about this upcoming IPO.
Amanta Healthcare IPO: Size and structure of the issue
A mainboard issue, Amanta Healthcare is coming up with a 100% fresh issue, offering 1 crore equity shares to the public.
Through this bidding, the IPO is set to raise Rs 126 crore, which will go directly towards funding the company’s expansion plans rather than promoter dilution.
Amanta Healthcare IPO: Price band and lot size
The price band for the IPO has been fixed at Rs 120 to Rs 126 per share. For retail investors, the minimum application size is 119 shares. This translates into an investment of Rs 14,994 at the upper price band.
Non-institutional investors will need to apply in larger lots, with a minimum outlay of around Rs 2.1 lakh for small NII and Rs 10 lakh for big NII applications.
Amanta Healthcare IPO: Important dates to track
The subscription period runs from September 1 to September 3, with the basis of allotment expected on September 4.
After all these process, the stock will make its market debut on September 9, on both the NSE and BSE.
Amanta Healthcare IPO: Grey Market buzz
Ahead of its opening, Amanta Healthcare IPO in the grey market premium (GMP) is hovering around Rs 22. This implies a listing gain of nearly 17.5% over the issue price.
However, it is important to note that GMPs are unofficial and volatile, and fluctuate based on market sentiment
Amanta Healthcare IPO: Where the money will go
According to the red herring prospectus (RHP), the proceeds from the IPO will largely be used for expansion at the company’s Hariyala facility in Kheda, Gujarat.
Around 70% of the funds will be spent on civil construction and new equipment for the SteriPort manufacturing line, while roughly 30% will be directed towards the SVP line. A portion will also go towards general corporate needs.
Amanta Healthcare IPO: Valuation check
At the upper price band, the company’s post-IPO market cap is estimated at Rs 489 crore, with a price-to-earnings (PE) ratio of 46.6x. This positions Amanta at a moderate premium compared to some listed pharma peers.
Amanta Healthcare IPO: About the company
Founded in 1994, Amanta Healthcare specialises in sterile liquid products and parenterals. It uses advanced Aseptic Blow-Fill-Seal (ABFS) and Injection Stretch Blow Moulding (ISBM) technologies to package its products.
Apart from this, the company is also active in medical devices as well.