Dipna Pharmachem Limited IPO

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i. Dipna Pharmachem is engaged in the trading and distribution of wide range of pharmaceutical raw material which is also known as APIs (Active Pharmaceutical Ingredients), Excipient and chemical formulation products. Presently their product portfolio comprises of 61 AIPs and AIPs intermediates such as Cephalosporins, Cardiovasculars, Anti – Bactaria, Quinolones, Veterinary, Anti – Virus, Anti – Inflammatory, Neuropsychiatry, Steroid Hormone, other etc.

ii. Being a trading and distribution company, they have pan India market for its products. The Company had also started the selling of chemicals on commission basis in the Financial year 2022 the Company had earned comission income of ` 127.50 lacs. The Company is doing trading in Ahmedabad and surrounding area of Ahmedabad.

iii. AIPs is known as bulk drugs or bulk actives are the principle ingredients used in making finished dosages in the form of capsules, tablets, liquid or other forms of dosage, with the addition of other APIs or inactive ingredients. The company believe that timely and committed delivery is an ongoing process of building and sustaining relationships. Their strength lies in understanding the requirements of the customer and our execution capabilities. This has enabled us to get repeated orders from our existing customers and attract new customers.

Competitive Strengths :

  1. Diversified Product Portfolio
  2. Experienced Promoter
  3. Quality Service
  4. High level of customer satisfaction

Objects of the Dipna Pharmachem Limited IPO:

The company intends to utilize the Net Proceeds for the following objects : a) Working capital requirement. b) General corporate purposes.
RHP of Dipna Pharmachem Limited IPO

Dipna Pharmachem Limited IPO Details:

Open Date: Aug 25 2022
Close Date: Aug 30 2022
Total Shares: 4,002,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 15.21 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 38 Per Equity Share
Listing At: BSE SME
Listing Date: Sep 07 2022

Promoters And Management:

i. Mr. Keyur Shah aged 43 years, is the Promoter & Managing Director of our Company. He holds a Bachelor's degree in Commerce from Gujarat University. He has an overall business experience of more than two decades in trading pharmaceutical raw materials. He has the significant industry experience and has been instrumental in the consistent growth of our Company‘s performance. ii. Mrs. Dipna Shah aged 43 years, is the Non-Executive Director of our Company. She holds the degree of Bachelor of Commerce from Saurashtra University. She has the expertise of more than 10 years in the trading segment of pharma and chemical business. She has in-depth knowledge in the field of Accounts and finance. She has the ability to quickly analyze key business drivers and develop strategies to grow the bottom line. iii. Mr. Nandish Jani aged 32 Years, is the Independent Director of our company. He has completed his Bachelor of Commerce from Gujarat University. He has overall 03 years of experience in the field of accounts and taxation matters. He is presently providing consultancy services to the Corporates & individual clients, guiding & advising them in Account & Taxation matters.

Financials of Dipna Pharmachem Limited IPO:

Particulars (in lakhs) March-22 March-21 March 20
Revenue from operations 7,275.54 3,099.99 3,053.85
Cost of raw materials consumed 6,766.67 3,122.08 3,116.17
Changes in inventories 89.15 -164.25 -221.7
Employee benefits expense 60.96 40.8 38.35
Other Expenses 134.32 61.38 76.24
Operating Profit 224.44 39.98 44.79
OPM% 3% 1% 1%
Finance Cost 67.43 35.31 38.92
Depreciation 0.62 0.72 0.88
Other Income 1.04 1.55 1
Profit (Loss) before tax 157.43 5.5 5.99
Tax expense 40.74 3.08 0.09
Profit (Loss) for the period 116.69 2.42 5.9

Comparison With Peers:

Name of the Company EPS (in Rs) PE Revenue (In Cr.) RONW %
Dipna Pharmachem Limited 0.96 38x 72 7.25%
Earum Pharmaceuticals Limited 0.14 31.33x 50 0.81
A-1 Acid Limited 2.73 107.51x 145 6.79

Recommendation on Dipna Pharmachem Limited IPO:

Review and Recommendation of Dipam Pharmachem Limited IPO by IZ team is 3/10 1. The Company is engaged in the trading and distribution of wide range of pharmaceutical raw material which is also known as APIs (Active Pharmaceutical Ingredients), Excipient and chemical formulation products. So, they are basically a trading company. 2. Presently their product portfolio comprises of 61 AIPs and AIPs intermediates such as Cephalosporins, Cardiovasculars, Anti – Bactaria, Quinolones, Veterinary, Anti – Virus, Anti – Inflammatory, Neuropsychiatry, Steroid Hormone, other etc. 3.  Revenue has increased from 30 Crores in Fy20 to 72 Crores in Fy21. 4. PAT has increased from 6 Lacs to 116 Lacs in last 3 years. 5. Receivables days of 131 in Fy22, which is high. 6. P/E of 38x looks very high.

Lead Manager of Dipna Pharmachem Limited IPO:

  1. Interactive Financial Services

Registrar of Dipna Pharmachem Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Dipna Pharmachem Limited A/211, Siddhi Vinayak Complex, Near D.A.V. School, Makarba, Ahmedabad – 380 055, Phone: +91-9898066121 Email: info@dipnapharmachem.com Website: http://dipnapharmachem.com/

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