Eris LifeScience IPO : Apply-Avoid Analysis by Sonam Sinha MBA finance has been given at Page-bottom-box. You are requested to study the same
As on Date & Time ……………………QIB …….. …. NII……… RII …….Employee…….Total
Shares Offered ……………………8617500 4308750 2872500….150000 ….15948750
Day 1 – June 16, 2017 04:00 pm 0.07 .. ……0.02…… 0.4100…. 0.000,………..0.12
Day 2 – Jun 19, 2017 05:00 pm. 0.8200….. 0.0300… 1.6800…. 0.3300 …… 0.7500
Day 3 – Jun 20, 2017 05:00 pm. 4.6890….. 0.4538… 3.4938…. 0.8682 …… 3.2857
On 28.06.2017 at 11.00pm GMP Rs.8
for past trend , see at the Page-bottom)
About the Company:
Ahmadabad-based specialty pharma company : Eris Lifesciences has started preparations to launch its IPO .
Started by Amit Bakshi in 2007, Eris Lifesciences has made inroads in the high margin super-specialty niches such as diabetes and hypertension. Unlike most other pharma players, Eris has no export operations. Amit Bakshi started the company after spending nearly 12 years in the industry at Torrent Pharma, Ely Lilly and Intas.
In less than a decade, Eris Lifesciences has achieved topline of Rs 800 crores with an industry-beating net profit margin of 25%.
The company has hired three investment banks : Axis Capital, Credit Suisse Securities India and Citigroup Global Markets India to manage the share sale. Following the finalization of the merchant banks, Eris Lifesciences IPO may be floated now
ChrysCapital had invested nearly Rs160 crores in Eris Lifesciences in 2011. The investment, equaling 16% of the company’s equity capital, is likely to be a multibagger for ChrysCapital. ChrysCapital owns nearly 16.3% in Eris Lifesciences and plans to completely exit the investment through the IPO.
IPO investors have preferred pharma and healthcare stocks . Last year, Alkem Laboratories raised Rs.1,350 crores through IPO which has given excellent returns for IPO investors. Devi Shetty’s Narayana Hrudayalaya, Dr Lal Pathlabs & Thyrocare Technologies have also performed well, rewarding IPO investors.
Mr. Amit Indubhushan Bakshi, Mr. Himanshu Jayantbhai Shah, Mr. Inderjeet Singh Negi, Mr. Rajendrakumar Rambhai Patel and Mr. Kaushal Kamlesh Shah.
The objects of the Offer :
a. To achieve the benefits of listing the Equity Shares on the Stock Exchanges and
b. For the sale of up to 28,875,000 Equity Shares by the Selling Shareholders.
IPO Particulars (Tentative)
Issue Opens on: 16 June 2017
Issue Closes on: 20 June 2017
Issue Type: Book Built Issue IPO
Issue Size: 2,88,75,000 Equity Shares
Face Value: Re 1 per Equity Share
Issue Price: Rs.600 – Rs.603 per Equity Share
Market Lot: 24 Shares
Listing At: NSE, BSE
15th June – Anchor List
16h June – Offer Opens
20th June – Offer Closes
23st June – Finalisation of Basis of Allotment
27th June – Unblocking of ASBA
28th June – Credit to Demat Accounts
29th June – Listing on NSE & BSE
Total Revenue in 2015-16 Rs. 597.02 crores
Profit After Tax in 2015-16 Rs 1,34 crores
EPS for 2015-16 Rs. 10.03
Book Value as on 31.3.2016 Rs. 21.79
Positive features of this company
1. Focus on branded prescription based pharmaceutical products catering to lifestyle related disorders;
2. One of the fastest growing companies in certain high growth therapeutic areas with a portfolio of complementary products;
3. Portfolio of high volume and leading brands;
4. Focus on Metro Cities and Class 1 towns in India which have higher incidence of lifestyle disorders and concentration of specialists and super specialists;
5. Multi-faceted product selection and engagement model leading to growth in prescription for our products; and
6. Strong sales, marketing and distribution capabilities.
In the coming months, Metropolis Healthcare also plans to come up with its IPO and has already received regulatory clearances for the same. Metropolis is one of the 15 companies which have SEBI consent for launching IPO.
GMP Trend Report:
On 28.06.2017 at 11.00pm GMP Rs.8
On 20.06.2017 at 06.00pm GMP Rs.10
On 20.06.2017 at 11.00pm GMP Rs. 32-34,
On 16.06.2017 at 11.00pm GMP Rs. 70,Buyers in Rs.300 Kostak
On 15.06.2017 at 11.00pm GMP Rs. 75 ( Sellers)
On 14.06.2017 at 11.30pm GMP Rs. 70-72 ( no fancy)
On 13.06.2017 at 11.30pm GMP Rs. 70 and No application
On 12.06.2017 at 11.30pm GMP Rs. 84-86 and No application
On 10.06.2017 at 05.30pm GMP Rs. 88-90 and Kostak Rs. NIL
On 10.06.2017 at 09.30am GMP Rs. 110-114 and Kostak Rs. 300
On 09.06.2017 at 10.00pm GMP Rs. 110-114 and Kostak Rs. 300
On 09.06.2017 at 05.00pm GMP Rs. 139/143 and Kostak Rs. 300