Chandra Bhagat Pharma Ltd IPO

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(i) The Company was incorporated as “Chandra Bhagat Pharma Private Limited” at Mumbai on March 10, 2003, under the provisions of the Companies Act, 1956 vide Certificate of Incorporation issued by Assistant Registrar of Companies, Maharashtra, Mumbai. On April 1, 2003, the company acquired the going concern business of M/s. Chandra Bhagat Corporation (“partnership firm”) along with all its assets and liabilities. However, on March 20, 2019, it has converted from Private Limited Company to Public Limited Company.

(ii) They are engaged in the business of marketing pharmaceutical critical care & health care products. For which they have obtained necessary approvals from FDA for getting the manufacture of the formulation from contract manufacturers on loan license or on principle to principle basis. Presently they have  Contract Manufacturing Agreement with 4 pharmaceutical companies/entitiesThey also, take the necessary Trademark approvals & registrations wherever required.

(iii) At present, they have a wide range of products portfolio of a pharmaceutical formulation including IV & IM range Injections, few tablets to cater to the Domestic & Export Market. They have established a presence in major therapeutic categories for formulations such as Anti-cancer (Oncology), Antibiotics, Anesthesia, Hormones, Orthopedic, Cardiac, Cardiovascular, 77 Anti-fungal, Antiviral, Pediatrics, Cardiology, Nephrology, Neurology, etc. They are also engaged in promoting and marketing of Active Pharmaceuticals Ingredients (API’s) in India.

Objects of the Chandra Bhagat Pharma Ltd IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: 1. To Meet Incremental Working Capital Requirements. 2. Setting up Distribution and Warehousing Centre’s. 3. General Corporate Purpose. 4. To meet Public Issue Expenses.

Chandra Bhagat Pharma Ltd IPO Details:

Open Date: Jan 31 2020
Close Date: Feb 06 2020
Total Shares: 2000000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price
Issue Size: 10.20 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 51 Per Equity Share
Listing At: BSE SME
Listing Date: Feb 14 2020

Promoters And Management:

1. Mr. Hemant Chandravadan Bhagat, Chairman cum Managing Director 2. Mr. Pranav Hemant Bhagat, Whole-Time Director 3. Mrs. Prachi Pranav Bhagat, Executive Director & CFO 4. Mrs. Abha Praveen Doshi, Independent Director 5. Mr. Ravindra Gajanan Awati, Independent Director

Financials of Chandra Bhagat Pharma Ltd IPO:

( Fig. in Lakhs )
Year Revenue EBITDA OPM PAT NPM Shares F.V. EPS NW RONW
2017 9,028.11 439.45 5% 66.03 1% 55.45 10 1.19 741 9%
2018 9773.41 474.98 5% 103.38 1% 55.45 10 1.86 844 12%
2019 10671.83 467.35 4% 62.59 1% 55.45 10 1.13 1437 4%
Post -IPO 75.45 10 0.83 1499 3%
CAGR 9% 3% -3%

Comparison With Peers:

( Fig. in Lakhs )
Name of the Company F.V. EPS P/E Ratio RONW
Chandra Bhagat Pharma Limited 10 1.17 43.59 4.71
Earum Pharmaceuticals Limited 10 53.83 0.84 27.95
Vaishali Pharma Limited 10 1.08 24.12 3.73
Note: The above figures are based on FY19 results.

Recommendation on Chandra Bhagat Pharma Ltd IPO:

Review and Recommendation of InvestorZone is:2/10 [ The asking P/E is 61 based on FY19 financials, which is very high. The company has inconsistent financial performance. The company has poor RONW. The company has D/E more than 1, which is risky.]

Lead Manager of Chandra Bhagat Pharma Ltd IPO:

  1. Beeline Broking Limited

Registrar of Chandra Bhagat Pharma Ltd IPO:

  1. Link Intime India Private Limited

Bid Details of Chandra Bhagat Pharma Ltd IPO as on
03 Feb 2020 | 12:12:01 PM

Category No.of shares offered No. of shares bid
950,000 1,382,000
950,000 114,000
100,000 100,000
2,000,000 1,596,000
QIBs No
QIBs+HNIs Subscription 1.45X
Retail Subscription 0.12X
Total Subscription 0.79X

Discussion on Chandra Bhagat Pharma Ltd IPO:

    Last day Subscription Figures at 3.30 pm

    HNI 1.87 times
    Retail 1.27 times
    MM. 1.00 times
    Overall 1.49 times

    Chandra Bhagat Pharma Limited
    BSE SME IPO
    Last day Subscription Figures at 12.30 pm

    HNI 1.61 times
    Retail 0.79 times
    MM. 1.00 times
    Overall 1.19 times

    Issue closes today

    Lead Manager: Beeline Broking Limited