Mono Pharmacare Limited IPO

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i. Mono Pharmacare is engaged in the business of marketing of pharmaceutical products and also, they are distributors of various pharmaceutical companies. They work with various contract manufacturers who manufacture pharmaceutical products on the behalf based on compositions given by them and subsequently they sell those products under their brand “DLS Export”.

ii. They are also distributors to various pharmaceutical companies. As on February 28, 2023, the company is dealing with (distributors and stockists) 168 pharmaceutical companies and also, they are connected with 3,036 Customers/vendors who are a mix of retail pharmacy stores as well as wholesalers.

iii. Acquisition of DLS Export by way of a deed of business transfer agreement dated December 15, 2022. DLS Export, a proprietorship firm, was established by the promoter Panilam Lakhatariya on March 02, 2020. The acquisition was for an aggregate consideration of ₹ 609 lakhs, in order to grow their product portfolio in selected therapeutic areas.

Brief details of business segments

  • Marketing of Pharmaceutical Products

They outsource the manufacturing of certain of their products, and currently use approximately 19 third party manufacturers. They provide compositions to manufacture each pharmaceutical product according to its specifications. Once the raw materials are sourced, their contract manufacturers begin the manufacturing according to the requirements and order given to them by the company. They manufacture products in batches within the given time frame. After the order is completed, the manufacturers provide the finished product with a quality certificate that the products are in compliance with quality standards as required by the regulatory authorities.

  • Distributor of Pharmaceutical Products

The pharmaceutical industry requires a complex and efficient distribution model to ensure that patients have access to the medications they need. Pharmaceutical distribution is the process of delivering medications from the manufacturer to the healthcare provider or patient. The pharma distribution model involves several key players, including manufacturers, wholesalers, distributors, pharmacies, hospitals, and other healthcare providers. Each player in the distribution chain has a specific role to play in ensuring that medications are delivered safely and efficiently. Distributors are responsible for supplying the medications from the wholesalers to the pharmacy or healthcare provider. They also handle the storage and handling of the medications to ensure that they remain safe and effective.

Competitive Strengths

  • Experienced promoters and management team with industry knowledge and an established track record
  • Asset-light business model and competitive products
  • Scalable Business Model

Objects of the Mono Pharmacare Limited IPO:

The issue comprises of fresh issue of up to 55,00,000 equity shares of our company. 1. To meet the working capital requirements; 2. General corporate purposes; and 3. To meet the issue expenses
DRHP of Mono Pharmacare Limited IPO
RHP of Mono Pharmacare Limited IPO

Mono Pharmacare Limited IPO Details:

Open Date: Aug 28 2023
Close Date: Aug 30 2023
Total Shares: 5,500,000
Face Value: ₹ 10 Per Equity Share
Issue Size: ₹14.84 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 26-28 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 07 2023

Promoters And Management:

Panilam Lakhatariya aged 39 years, is the Chairman and Managing Director of the company. He has been associated with the Company since its inception. He has been re-designated as Managing Director with effect from March 22, 2023. He has been an integral part of the Company since its inception. He has completed his Bachelor of Science from Gujarat Arts and Science College. He has gained extensive experience in the pharmaceutical industry, particularly in sales and marketing. His previous roles include leading a team of sales professionals to achieve revenue targets and expand market share within the assigned regions. Prior to his current role, he was previously associated with Glenmark Pharmaceuticals Limited and Intas Pharmaceuticals Limited as Sales Manager. Supal P Lakhatariya aged 38 years, is the Executive director of the company. She has been associated with the Company since its inception. She holds a Bachelor of Science degree from St. Xavier's College, Gujarat University and has also completed a Laboratory Technician Course from Sheth V.S.Genral Hospital & Sheth Chinai Maternity Hospital, R.M.School of Post Graduate. Her previous experience includes working as a Medical Representative at Krishna Medical Stores for over 5 years, where she gained a deep understanding of the pharmaceutical industry. She has been instrumental in the Company’s growth and success. She is responsible for the day-to-day operations of the company and manages all departments. Archit Shah aged 33 years, is an Executive Director of the company. He has completed his Bachelor of Pharmacy from Bhavnagar University. He was appointed as Executive Director w.e.f. October 17, 2022. His role is instrumental in achieving assigned targets for the company includes maintaining strong relationships with retail chemists and ensuring the accessibility of the brand. He was previously associated with Micro Labs Limited and Bayer Zydus Pharma Private Limited.

Financials of Mono Pharmacare Limited IPO:

Pariculares ( In Lakhs )
2021
2022
2023
Revenue from Operations 2,827 3,698 5,848
Other Income 11.22 11.96 13.68
Total Revenue 2,838 3,710 5,861
Purchase of Traded Goods 2,774 3,526 8,131
Change in Inventories -118.7 -57.3 -2,797.2
Employee Benefits Expense 53.9 62 110
Other Expenses 32 38.8 107
EBITDA 95.9 140.1 310
Depreciation & Amortisation 12.8 10.8 10.4
Finance Cost 66.2 74.2 132.3
EBIT 83.1 129.3 299.9
OPM (%) 3.38% 3.78% 5.29%
PBT 16.9 55.1 167.6
Tax 7.4 20.00 44
PAT 9.5 35.1 123.4
NPM (%) 0.34% 0.95% 2.10%
No.of Shares 176.68 176.68 176.68
EPS 0.05 0.19 0.69
 

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Mono Pharmacare Limited 58 1 0.69 40.1 28 49
Chandra Bhagat Pharma Limited 120 1 1.21 110.0 133 100
* All the data is as per FY23.

Recommendation on Mono Pharmacare Limited IPO:

Review and Recommendation of Mono Pharmacare SME IPO by IZ team is 4/10 Read Review Here

Lead Manager of Mono Pharmacare Limited IPO:

  1. Unistone Capital Pvt Ltd

Registrar of Mono Pharmacare Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

1A, Krinkal Apartment Opp. Mahalaxmi Temple, Paldi Ahmedabad -380007, Gujarat

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