Saroja Pharma’s IPO aims to raise INR 9.11 crores. The company aims to issue fresh shares worth INR 9.11crores. The IPO’s main objective is to set-up a new manufacturing unit and repay the unsecured loans of the company.
Saroja Pharma Industries IPO – Important Details
| Saroja Pharma Industries IPO Date | August 31, 2023 to September 5, 2023 |
| Saroja Pharma Industries IPO Listing Date | September 13, 2023 |
| Saroja Pharma Industries IPO Price | INR 84 per share |
| Saroja Pharma Industries IPO Lot Size | 1600 shares |
| Saroja Pharma Industries IPO Total Issue Size | INR 9.11 crores |
| Saroja Pharma Industries IPO Basis of Allotment | September 8, 2023 |
| Saroja Pharma Industries IPO Initiation of Refunds | September 11, 2023 |
| Saroja Pharma Industries IPO Credit of Shares to Demat | September 12, 2023 |
| Saroja Pharma Industries IPO Issue Type | Fixed Price Issue IPO |
| Saroja Pharma Industries IPO Listing At | NSE SME |
Saroja Pharma IPO – Company Profile
Saroja Pharma Industries India Limited was founded in 2019 by Mr. Biju Gopinathan Nair and Mr. Manish Dasharath Kamble, with a clear vision of becoming a globally integrated and highly regard ed pharmaceutical and healthcare company, the two promoters embarked on a journey to establish their business.
The company trades in Pharma API, pharma intermediates, chemicals, solvents used for pharmaceutical products, human and veterinary medicine. The company was formed with a mission of providing clientele specification – based approved product at a competitive pricing with hassle free dispatch within India or abroad contributing to cost effectiveness in end product for human and veterinary medicine.
Saroja Pharma Industries IPO – Fundamental Analysis
Saroja Pharma Industries India Limited exhibits revenue growth, strong equity, consistent profitability, and increased net asset value. However, the decreasing RoNW suggests a reduction in profitability over the years. Potential investors should consider these factors and conduct a detailed assessment before making investment decisions.
Revenue:
The company’s revenue grew from ₹3,666.15 lakhs in 2021 to ₹5,019.32 lakhs in 2023, indicating expansion.
Equity:
Equity increased significantly from ₹93.59 lakhs in 2021 to ₹508.66 lakhs in 2023, reflecting strong financial growth.
Expenses:
While expenses also increased, they remained proportionate to revenue, suggesting improved profitability.
Profit and Loss After Tax:
The company showed consistent profits, with ₹106.06 lakhs in 2023, affirming stability.
Return on Net Worth (RoNW):
RoNW decreased from a robust 78.14% in 2021 to 20.85% in 2023, signaling a decline in profitability.
Diluted EPS:
The Diluted EPS increased from ₹2.69 in 2021 to ₹3.61 in 2023, demonstrating earnings growth.
Net Asset Value (NAV) per Equity Share:
The NAV per Equity Share improved from ₹3.44 in 2021 to ₹17.33 in 2023, indicating an increased net asset value.
Total Assets and Total Liabilities:
Both assets and liabilities increased, with assets outpacing liabilities, reflecting financial growth.
Saroja Pharma Industries India Ltd IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in lakhs) | 3,666.15 | 5,563.25 | 5,019.32 |
| Equity (₹ in lakhs) | 93.59 | 402.60 | 508.66 |
| Expenses (₹ in lakhs) | 3,571.12 | 5,437.74 | 4,885.94 |
| Profit and Loss After Tax (₹ in lakhs) | 73.13 | 114.01 | 106.06 |
| RoNW (%) | 78.14% | 28.32% | 20.85% |
| Diluted EPS only (₹) | 2.69 | 3.96 | 3.61 |
| NAV per Equity Share (₹) | 3.44 | 14.00 | 17.33 |
| Total Assets (in lakhs) | 822.39 | 1,551.19 | 2,133.99 |
| Total Liabilities (in lakhs) | 728.80 | 1,148.59 | 1,625.33 |
Saroja Pharma Industries IPO Peer Comparison
Saroja Pharma Industries India Limited, with a face value of ₹10, exhibits a moderate P/E ratio of 23.27, a relatively lower EPS of ₹3.61, a strong RoNW of 20.85%, and a NAV per Equity Share of ₹17.33. Compared to its peers, Saroja Pharma Industries presents competitive financial metrics, indicating stable performance and potential for growth.
| Company | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (₹) |
| Saroja Pharma Industries India Limited | 10 | 23.27 | 3.61 | 20.85% | 17.33 |
| NGL Fine Chem Limited | 5 | 23.15 | 84.57 | 25.29% | 334.35 |
| Sequent Scientific Limited | 2 | 223.00 | 0.60 | 1.42% | 41.92 |
Saroja Pharma Industries IPO Objective
Saroja Pharma Industries aims to utilize INR 7.05 crores from the IPO proceeds to establish a manufacturing unit in Nashik, Maharashtra, costing INR 23 crores, and to repay existing unsecured loans of INR 2.18 crores, along with INR 1.75 crores in pre-payment charges.
- To set-up a manufacturing unit: The company plans to set-up a manufacturing facility in Nashik, Maharashtra. The total cost for setting up the facility is INR 23 crores and the company plans to utilise INR 7.05 crores from the proceeds of the fresh issue towards the purpose.
- To repay unsecured loans of the company: As on 31st March, 2023, the company had outstanding unsecured loan of Rs. 2.18 crores, for which the Company wanted to repay the Loan Amount along with pre-payment charges of Rs. 1.75 crores to various lenders, which will be proposed to repay out of the net proceeds.
Saroja Pharma IPO Risks And Challenges
Saroja Pharma Industries is exposed to risks related to entering a new line of business, heavily relying on top customers (83% revenue from top 10 clients), handling hazardous materials, and dependence on a few key states for domestic sales (89% from top 5 states).
- Entering a new line of business i.e., manufacturing for raw materials can bring exciting opportunities.There are many risks associated with the new line of business of the company like Manufacturing of pharma products and raw materials requires specialized knowledge, technical skills, and operational experience. If we are not adequately prepared or lack the necessary expertise in this field, it may lead to inefficiencies, quality issues, and overall difficulties in managing the production process effectively.
- Almost 83% of the revenue of the company is dependent on top 10 customers.The loss of any significant clients may have a material and adverse effect on the business and results of operations.
- Some of the raw materials that the company trades are hazardous, corrosive and flammable and require expert handling and storage, as applicable. Any accidents may result in loss of life or property and disrupt our operations which may have an adverse effect on the results of operation, cash flows and financial condition.
- Almost 89% of the domestic sales is dependent on the top 5 states-Andhra Pradesh, Gujarat, Maharashtra, Telangana and Tamil Nadu,the loss of any significant clients in these states may have a material and adverse effect on our business and results of operations.
Saroja Pharma Industries IPO – Industry & Market Potential
The global pharmaceutical manufacturing market size was valued at USD 405.52 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 11.34% from 2021 to 2028. The pharmaceutical landscape has undergone a massive transformation with the emergence of new technologies, cost-effective, and more efficient manufacturing approaches. In addition, increasing investment flow in this space has impacted the market growth positively. Manufacturing floor downtime and the production of product waste are reduced by the implementation of robotic technology and Artificial Intelligence (AI).
The Indian pharmaceutical industry is known for its generic medicines and low-cost vaccines globally. Transformed over the years as a vibrant sector, presently Indian Pharma ranks third in pharmaceutical production by volume. In the last nine years, the Indian Pharma sector has grown steadily by a CAGR of 9.43%. The Pharma sector has been consistently earning a trade surplus.
The nation is the largest provider of generic medicines globally, occupying a 20 per cent share in global supply by volume, and is the leading vaccine manufacturer globally with a market share of 60 per cent.
Saroja Pharma Industries IPO – Type of Offer
Saroja Pharma’s IPO aims to raise INR 9.11 crores. The company aims to issue fresh shares worth INR 9.11crores.
Saroja Pharma Industries India Ltd IPO Offer Size
Saroja Pharma’s IPO seeks to generate INR 9.11 crores by issuing new shares with the primary goal of establishing a fresh manufacturing facility and settling the company’s outstanding unsecured debts.
Saroja Pharma Industries India IPO Allotment Structure
Saroja Pharma Industries India IPO allocation: Retail Individual Investors (RII) with investments less than INR 2 lakhs, other investors with amounts exceeding INR 2 lakhs, and 5.01% reserved for market makers with 54,400 equity shares.
Retail Individual Investors (RII): The application value does not exceed INR 2 lakhs. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs .
Market Maker Reservation: Total of 54,400 equity shares are reserved for market makers. This forms 5.01% of the total issue.
How to apply for a Saroja Pharma Industries IPO?
To apply for the Saroja Pharma Industries IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Saroja Pharma Industries IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for Saroja Pharma Industries IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Saroja Pharma Industries IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Saroja Pharma Industries IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Saroja Pharma Industries IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Saroja Pharma Industries IPO:
Registrar’s Website: Visit the website of Kfin Technologies Limited, the registrar of the Saroja Pharma Industries IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (BSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Saroja Pharma Industries IPO Offer Registrar
The registrar for the Saroja Pharma Industries India Limited IPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Kfin Technologies Limited
Selenium Tower-B,
Plot 31 & 32, Gachibowli, Financial District,
Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana;
Tel. Number: +91 40 6716 2222;
Email Id: [email protected]
Website: www.kfintech.com;
Saroja Pharma Industries IPO FAQs
What is the allotment date of the Saroja Pharma Industries IPO? The allotment date is 8th September 2023.
What is the price band of Saroja Pharma Industries IPO? The issue price per equity share is INR 84.
What is the size of the Saroja Pharma Industries IPO? Saroja Pharma’s IPO seeks to generate INR 9.11 crores by issuing new shares with the primary goal of establishing a fresh manufacturing facility and settling the company’s outstanding unsecured debts.
What is the listing date of the Saroja Pharma Industries IPO?The listing date is 13th September 2023.
