(i) The Company was Incorporated in the year 2012, and the Company is engaged in the pharmaceutical business involving Marketing, Trading, and distribution of wide range of pharmaceutical formulation products such as antibiotic drugs, anti-malarial drugs, anti-allergic & anti cold drugs, analgesic/ antipyretic & anti-inflammatory drugs, dermatology products, cerebral activator drugs, neurological drugs, gastrointestinal drugs, steroids, gynecology drugs, calcium, multivitamins, anti-oxidants and injections.

(ii) As on the date of Draft Prospectus, they offer around 125 pharmaceutical formulation products, of which around 24 products are marketed by them under our own brand name, the manufacturing of which is outsourced by them to third parties.

Apart from pharmaceutical formulation products, they also deal in trading of active pharmaceutical ingredients (API’s) such as Levofloxacin Hemihydrate IP Albendazol IP, Amoxicillin Trihydrate IP etc.

(iii) The Company has its registered office, corporate office, and warehouse situated at Ahmedabad (Gujarat). Mr. Bhumishth  Narendrabhai Patel, Chairman, and Managing Director and one of the Promoters of our Company have an overall experience of over 11 years in various segments of the pharmaceutical business.

Financials of Earum Pharmaceuticals Limited IPO:

(All figures in lakhs)

Year	Revenue	EBITDA	OPM	PAT	NPM	Shares	EPS	P/E
FY16	1,863.00	58	3.1%	9.76	0.52%	1.074	0.16	19.35
FY17	2,369.27	68	2.9%	15.98	0.67%	1.074	0.26
FY18	3,584.65	196	5.5%	85.65	2.39%	3.086	1.38
9MFY19	3,450.35	201	5.8%	86.51	2.51%	3.086	1.40
Post Issue(Annualized)	4600.00	268	5.8%	115.34	2.51%	62	1.86

Year	Long-term	Short-Term	Net-Worth	D/E	Receivables days	RONW
FY16	39.12	150.64	136.59	1.39	87	7.15%
FY17	56.19	149.55	152.58	1.35	55	10.47%
FY18	150.49	504.43	473.67	1.38	111	18.08%
9MFY19	159.51	581.08	507.59	1.46	154	17.04%
Post Issue(Annualized)			1172.87	0.63		9.83%

Comparison With Peers:

As per DRHP, the company has shown Vaishali Pharma SME as a peer. The Company's performance in the last one year is shown below which clearly states the sorry state of affair. The EPS for FY18 of Vaishali Pharma stands at 1.41 and CMP is 27[ 20.06.2019] So the P/E at present is 19 which is what Earum Pharmaceutical is asking.

Recommendation on Earum Pharmaceuticals Limited IPO:

Review and Recommendation of Earum Pharmaceuticals Limited IPO from IZ Team are 2/10. [ The Pharma Sector is out of flavor these days and have given a negative return in the past. The Peer Vaishali Pharma SME company is continuously falling in the last one year. The Receivables days are very high and keep on increasing year on year for Earum Pharmaceuticals which reflects the pain in the sector. The D/E on the basis of 9MFY19 is 1.45 which is high considering that the market is punishing high debt companies, pain can be seen after listing. The Issue price is quite aggressive at P/E multiple of 19.36x.]

Lead Manager of Earum Pharmaceuticals Limited IPO:

1. Hem Securities Limited

Registrar of Earum Pharmaceuticals Limited IPO:

1. Bigshare Services Private Limited

Bid Details of Earum Pharmaceuticals Limited IPO as on
26 Jun 2019 | 11:54:03 PM

Category	No.of shares offered	No. of shares bid
QIBs + NIIs	876,000	1,503,000
Retail Individual Investors (RIIs)	876,000	1,299,000
Market Maker Reservation Portion	96,000	96,000
Total	1,848,000	2,898,000

QIBs	No
QIBs+HNIs Subscription	1.72X
Retail Subscription	1.48X
Total Subscription	1.60X