Sotac Pharmaceuticals Limited IPO
i. Sotac Pharmaceuticals is in the business of manufacturing of pharmaceutical products for different marketers on loan license or contract manufacturing basis. The business is majorly on principle to-principle basis with different marketers. They cater to 162 corporate clients on loan licence and/or contract manufacturing basis.
ii. Their manufacturing facility at SOTAC Pharmaceuticals Limited is installed with capacity to manufacture 360 Crore tables / year, 32.40 Crore Capsules / year, 2160 Kilo Litter syrup / year and 324 Tons external preparation / year
iii. They have 71% holding in SOTAC Healthcare Private Limited (SOTAC Healthcare), and 100% of SOTAC Research Private Limited (SOTAC Research), thus making them their Subsidiary Companies. SOTAC Healthcare is engaged in the business of manufacturing of Beta-lactam drugs. SOTAC Research is engaged in the business of pharma molecule research and development.
iv. They have recently started a new venture namely SOTAC Lifescience Private Limited (SOTAC Lifescience). They hold 51% of total paid-up capital of SOTAC Lifescience. SOTAC Lifescience is a newly incorporated company and will be engaged in the business of Manufacturing of Nutraceuticals products and food products on contract-manufacturing basis. SOTAC Lifescience is in process of setting-up its manufacturing plant and yet not commenced commercial production.
v. Their group’s therapeutic portfolio includes Anti-Diabetic, Anti-Psychotic, Vitamins, Minerals, Iron, Anti-Cold, AntiAllergic, Derma Products, Antacid, Anti-Ulcerants, PPI, Anti-Emetics, Cardiac, Anti-Hypertensives, Analgesic, AntiPyretic, Anti-Inflammatory, Anti-Bacterial, Anti-Viral, General Antibiotics IP-Lactams & Non-IP-Lactams, Anti-Fungal, Cephalosporin.
vi. As a group, they cater to a wide spectrum of companies for formulation development, clinical batch production, commercial scale productions.
vii. Sotac Pharmaceuticals manufacturing facilities are situated at Sanand GIDC–II in Ahmedabad district of Gujarat, which offers easy and convenient accessibility.
viii. The Company has marked its presence in both domestic as well as global markets. Their products are supplied in 14 major states in India.
i. Experienced Promoters and Management Team
ii. Wide range of Products
iii. Strategic Location of Manufacturing Facilities
Objects of the Sotac Pharmaceuticals Limited IPO:
Sotac Pharmaceuticals Limited IPO Details:
|Open Date:||Mar 29 2023|
|Close Date:||Apr 03 2023|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Built Issue IPO|
|Issue Size:||33.3 Cr.|
|Lot Size:||1200 Shares|
|Issue Price:||₹ 105-111 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||Apr 13 2023|
Promoters And Management:
Financials of Sotac Pharmaceuticals Limited IPO:
|Particulars (in Lakhs)||2022||2021||2020|
|Revenue From Operations||7,315||4,884||2,860|
|Purchase of Stock-In-Trade||27||23||16|
|Change in Inventories||-45||-51||-49|
|Employees Benefit Expenses||298||282||171|
Comparison With Peers:
|Name of the Companies||Revenue (Cr)||Profit (Cr)||EPS||P/E||CMP||MCap|
|Sotac Pharmaceutical Limited||79||0.93||0.84||132||105||122|
|Lincoln Pharmaceuticals Limited||500||71||36.62||9.68||345||691|
Recommendation on Sotac Pharmaceuticals Limited IPO:
Review and Recommendation of Sotac Pharmaceuticals by IZ team is 2/10 1. SOTAC Pharmaceuticals Limited is part of SOTAC group, based at Gujarat and they are in business of manufacturing of pharmaceutical products for different marketers on loan license or contract manufacturing basis. 2. They are specialised in the manufacturing of a wide range of pharmaceutical products such as Non Beta-Lactam (general) tablets, Non Beta-Lactam (general) capsules, Non Beta-lactam Syrup and external preparations. 3. The Company has marked its presence in both domestic as well as global markets.The products are supplied in 14 major states in India. 4. Its manufacturing units manufacture 56 under its own brands for Domestic market and 14 products are majorly sold in USA. 5. Revenue of the company has grown from 28 Crores in Fy20 to 73 Crores in Fy22. 6. EBITDA margins are very volatile. In Fy20, it was 6.54%, in Fy21 it is just 3% and in Fy22 it again rises to 8.38%. 7. Asking P/E based on Fy23 numbers is 132x, so, nothing is left for the investors in the company.