Patron Exim Limited IPO

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i. Patron Exim Limited is engaged in the trading and distribution of wide range of pharmaceutical raw material which is also known as APIs (Active Pharmaceutical Ingredients), industrial chemical, excipient and solvents. Presently their product portfolio comprises of around 150 AIPs, Excipient, Pharma Chemical & Intermediates.

ii. They are also in the trading of variety of chemicals, such as, Petrochemicals, Dyes & Pigment Chemicals, Paints & Speciality Chemical, Agro Chemicals, Oil & Refinery Chemicals, Foam & Adhesive, Plywood & Laminates Chemical. The range of Chemicals also includes food industry & water treatment chemicals, resins & plastics chemicals, polymers and additives etc.

iii. In the FY 2022, the company had turnover of `387.95 lacs as against the turnover of `2053.58 lacs in FY 2021 and ` 2488.70 lacs in FY 2019. The Firm had switched to act as commission agent and charge the commission instead of purchasing the goods and selling the goods.

iv. APIs 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 believes 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 them to get repeated orders from their existing customers and attract new customers.

v. They are supplying raw materials to pharmaceutical industries and pharmaceutical industry falls under the essential business list declared by the Government. The company has continued its business operation during Covid -19 during lock down period. Their business was not affected during the Covid-19 period.

Competitive Strengths
i. Diversified Product Portfolio
ii. Experienced Promoter
iii. Quality Service

 

Objects of the Patron Exim Limited IPO:

The Company proposes to utilize the Net Proceeds from the issue towards the following objects: 1. Working capital requirement 2. General Corporate Purpose, 3. Meeting Public Issue Expenses.  
DRHP of Patron Exim Limited IPO

Patron Exim Limited IPO Details:

Open Date: Feb 21 2023
Close Date: Feb 24 2023
Total Shares: 6,180,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 16.69 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 27 Per Equity Share
Listing At: BSE SME
Listing Date: Mar 06 2023

Promoters And Management:

Mr. Narendrakumar Patel aged 65 years, is a Promoter and Managing Director of the company. He is NonMatriculate. He has been with Company for last more than two and half decade. Because of his hard work and skills, the former Partnership Firm has started trading business in the APIs and other range of pharmaceutical raw material. His keen knowledge and marketing skills has expanded the business in the trading of various industrial use of chemicals as well. He believes in providing quality of products at affordable price in the market, which leads the business of Company at a different level of success. He is the pioneer and pillar of the Company. He look after all the trade, finance and marketing of the Company. Mrs. Sushilabahen Patel aged 62 years, is a Promoter & Non-Executive Director of the company. She is NonMatriculate. She has clear understanding in the basic principles of trading in the business line of Company. She handled entire admin & human resources work for the Company Mr. Bhumishth Patel aged 39 years, is a Promoter & Non-Executive Director of the Company. He has completed his Bachelor of Business Administration in 2004 from Som - Lalit Institute of Business Administration, Gujarat University, Ahmedabad and Diploma in Investment & Financial Analysis from Gujarat University in 2005. He has more than a decade experience in trading of pharmaceutical raw material & chemicals. He has been witnessing of the Company’s business since its incorporation as a partnership firm. He is one of promoter and director in two listed companies having similar line of business.  

Financials of Patron Exim Limited IPO:

Particulars ( In Lakhs ) 8MFY23 2022 2021 2020
Revenue from Operations 960 387 2053 2488
Other Income 94 113 0.1 27
Total Revenue 1054 501 2053 2516
Cost of Material Consumed - - - -
Purchase of Stock-in-Trade 1097 321 2127 2477
Changes in inventories -255 15 -114 -26
Employee Benefits Expense 4 - 8 2
Other Expenses 2 3 4 47
EBITDA 204 160 27 15
Depreciation & Amortisation 0.1 0.2 0.2 -
Finance Cost - 18 12 11
EBIT 204 160 27 15
OPM (%) 19.43% 32.02% 1.36% 0.62%
PBT 204 141 14 4
Taxes 59 58 7 1
PAT 145 83 7 2
NPM (%) 13.79% 16.57% 0.36% 0.09%
No.of Shares 231 231 231 231
EPS 0.627 0.358 0.031 0.009

Comparison With Peers:

Name of the Company Revenue (Cr) Profit (Cr) P/E EPS CMP Mcap (Cr)
Patron Exim Limited 14 2 28.69 0.94 27 62
Vaishali Pharma Limited 68 6 24.8 6.03 149 157
Earum Pharmacuticals Limited 17 1 14.2 0.17 2.41 14

Recommendation on Patron Exim Limited IPO:

Review and Recommendation of Patron Exim Limited SME IPO by IZ team is 2/10 (i) Patron Exim Limited is engaged in the trading and distribution of a wide range of pharmaceutical raw material which is also known as APIs (Active Pharmaceutical Ingredients), industrial chemical, excipient and solvents. (ii) The product portfolio includes 150 AIPs, Excipients, Pharma Chemicals, and Intermediates. (iii) They also trade Petrochemicals, Dyes & Pigment Chemicals, Paints & Speciality Chemicals, Agricultural Chemicals, Oil & Refinery Chemicals, Foam & Adhesive, and Plywood & Laminates Chemicals. (iv) Chemicals include food industry, water treatment, resins, plastics, polymers, and additives etc. Their business expansion is located in Ahmedabad and the surrounding area of Gujarat. (v) Their Company got certification of ISO 9001:2015 in Quality Management System, ISO 22000:2018 in The Food Safety Management System, ISO 45001:2018 in Occupational Health & Safety Management System. (vi) Marketing strategies:- a) Focus on expanding Business at Gujarat Level. b) Continuously holding market trends c) Supply of Quality Products d) Fulfilment of Order in a timely manner e) Adapting to market dynamics. (vii) Selling and distributing APIs (Active Pharmaceutical Ingredients) and chemical formulation products is a competitive sector. (viii) The Revenue has decreased from Rs 25 Crore in FY20 to Rs 5 Crore in FY22. (ix) The EBITDA has Increased from 15 Lakhs in FY20 to 1 Crore in FY22. (x) The PAT has Increased from 2 Lakhs in FY20 to 83 Lakhs in FY22. (xi) The company has very high receivables. Due to this company is not able to generate any cash. (xii) As per FY22, EPS is 0.94, Market Capitalization is 62 Crore & P/E is 29X.

Lead Manager of Patron Exim Limited IPO:

  1. Interactive Financial Services

Registrar of Patron Exim Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Patron Exim Limited 411, Safal Perlude, B/h Ashwaraj Bunglows, 100 FT Road, Prahladnagar, Vejalpur, Ahmedabad 380015 Phone: 9979978393 Email: info@patronexim.com Website: https://patronexim.com/

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