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Review By Dilip Davda on August 24, 2017
ANG Lifesciences India Ltd (ANGL) is engaged in the business of manufacturing and marketing of finished pharmaceutical formulations in a dosage form of sterile dry powder injection vials. ANGL is ISO-9001:2008 certified and has the most modern & sophisticated plant, equipments, technique and manpower. The planning and construction of plant has been done to conform to the regulatory requirements as per the norms of WHO G.M.P. and G.L.P. as per schedule-M (revised). It manufactures products in compliance with GMP requirements. ANGL's products include sterile dry powder vials for Anti Biotics, Anti Ulcerant, Gluco corticoid and Anti inflammatory, Anti malarial and Anesthetic. The pharmaceuticals market is highly competitive and fragmented, and ANGL faces competition from various domestic and international manufacturers. However, Company that currently operates at an average capacity utilization of 70% for last two fiscals' hopes to achieve 90% plus in coming years. ANGL is likely to consider acquisition options as well to enhance its manufacturing capacities. Its customer list includes Wockhardt, DHS Maharashtra, Global Hospitals, Elder, Emcure, BPPI, Govt. of Haryana, Hetero Healthcare etc.
To part finance its working capital and general corpus funds requirements, the company is coming out with a maiden IPO of 1500800 equity share of Rs. 10 each at a fixed price of Rs. 80 per share to mobilize Rs. 12.01 crore. Issue opens for subscription on 29.08.17 and will close on 31.08.17. Minimum application is to be made for 1600 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Guiness Corporate Advisors Pvt Ltd. and Bigshare Services Pvt Ltd is the registrar to the issue. Issue constitutes 28.95% of the post issue fully diluted equity capital of the company. ANGL's entire current capital is issued at par. Post issue, company's paid up equity capital of Rs. 3.68 crore will stand enhanced to Rs. 5.18 crore.
On performance front, ANGL has reported turnover/net profits of Rs. 34.62 cr. / Rs. 0.19 cr. (FY14), Rs. 36.94 cr. / Rs. 0.40 cr. (FY15), Rs. 55.13 cr. / Rs. 1.65 cr. (FY16) and Rs. 67.92 cr. /Rs. 2.92 cr. (FY17). ANGL has posted average EPS of Rs. 5.65 and average RoNW of 32.96% for last three fiscals. Issue is priced at a P/BV of 3.8 plus. If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of 14 plus against peers trading at a P/E ranging from 13 to 72. Thus pricing appears to be reasonable.
On merchant banker's front, this is the 17th mandate in last three years and out of recent 10 listings, four opened at a discount and the rest at par or with mere premium to offer price on the day of listing.
Conclusion: Investors may consider investment for medium to long term.
Review By Dilip Davda on August 24, 2017
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of ANG Lifesciences India Ltd offers an early investment opportunity in ANG Lifesciences India Ltd. A stock market investor can buy ANG Lifesciences IPO shares by applying in IPO before ANG Lifesciences India Ltd shares get listed at the stock exchanges. An investor could invest in ANG Lifesciences IPO for short term listing gain or a long term.
Read the ANG Lifesciences IPO recommendations by the leading analyst and leading stock brokers.
ANG Lifesciences IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the ANG Lifesciences IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for ANG Lifesciences IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the ANG Lifesciences IPO.
The ANG Lifesciences IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit ANG Lifesciences IPO allotment status to check.
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