Sotac Pharmaceuticals IPO will open for subscription from 29 March 2023. the company aims for an issue size of ₹33.30 Cr through this IPO.
About Company
Incorporated in 2015, Sotac Pharmaceuticals is part of the SOTAC group, based in Gujarat. It is in the business of manufacturing pharmaceutical products for different marketers on a loan license or contract manufacturing basis. Its business is majorly on principle to principle basis with different marketers.
It caters to 162 corporate clients on a loan license and/or contract manufacturing basis. In the year 2022, the company’s manufacturing facility had an annual capacity to manufacture 360 crore tablets, 32.4 crore capsules, 2,160 Kilo Liter syrup, and 324 Tons of external preparation.
The company’s manufacturing facilities – which are WHO-GMP accredited – are situated at Sanand GIDC–II in the Ahmedabad district of Gujarat and its infrastructure consists of a comprehensive production unit, quality control department, quality assurance microbiological laboratory, raw material, and finished product storage.
Basic details about the company
| Full name | Sotac Pharmaceuticals Limited |
| Sector | Healthcare |
| Industry | Pharmaceutical & Drugs |
| Company Website | https://sotacpharma.com/ |
The objective of the Issue
- To Meet Working Capital Requirements
- Investment in Subsidiary
- Upgradation / Construction of Existing /New Building in the Existing Premises
- General Corporate Purpose
- To meet Public Issue Expenses
IPO Timetable
| IPO Opening date | 29 March 2023 |
| IPO Closing | 03 April 2023 |
| Basis of Allotment | 10 April 2023 |
| Initiation Refund | 11 April 2023 |
| Credit to Demat Account | 12 April 2023 |
| Listing Date | 13 April 2023 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹33.30 Cr – 3,000,000 |
| Fresh Issue | ₹33.30 Cr – 3,000,000 |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹105 to ₹111 per share |
| Lot size | 1200 Shares |
| Retail Allocation | 35% |
| Listing Exchange | NSE SME |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1200 | ₹133,200 |
| Retail (Max) | 1 | 1200 | ₹133,200 |
| HNI (Min) | 2 | 2,400 | ₹266,400 |
Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Financial Performance
| FY 2020 | FY 2021 | FY 2022 | H1 FY 2023 | |
| Revenue | 28.60 | 43.44 | 73.15 | 30.75 |
| Expenses | 27.85 | 42.31 | 68.68 | 26.56 |
| Net income | 0.71 | 0.86 | 2.88 | 3.10 |
Valuations & Margins
| FY 2020 | FY 2021 | FY 2022 | |
| EPS | 1.05 | 1.07 | 3.58 |
| PE ratio | – | – | 29.33 – 31.01 |
| RONW (%) | 20.93 | 20.43 | 43.47 |
| NAV | – | – | 8.23 |
| ROCE (%) | 17.90 | 25.41 | 68.85 |
| EBITDA (%) | 7.19 | 6.44 | 8.36 |
| Debt/Equity | 2.13 | 1.59 | 1.04 |
Company Promoters
- Mr. Sharadkumar Dashrathbhai Patel
- Mr. Dineshkumar Babulal Gelot
- Mr. Vishalkumar Devrajbhai Patel
- Mr. Chetankumar Bachubhai Patel
- Mrs. Kiran Baldevbhai Jotania
Promoter Holding
| Pre Issue Share Holding | 84.63% |
| Post Issue Share Holding |
Lead Manager(s)
- Beeline Capital Advisors Pvt Ltd
IPO Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222
Email: sotac.ipo@kfintech.com
Website: www.kfintech.com
Contact Details
SOTAC PHARMACEUTICALS LIMITED
Plot No. PF-21, Nr. ACME Pharma,
Opp. Teva Pharma Sanand GIDC-II,
Sanand Ahmedabad -382110, Gujarat
Phone: +91 90819 93300
E-mail: compliance@sotacpharma.com
Website: www.sotacpharma.com
Allotment Status
Sotac Pharmaceuticals IPO allotment status will be available on KFin Tech website. Click on this link to get allotment status.
Final thoughts
Sotac Pharmaceuticals IPO is going to hit Dalal street soon. applying for an IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
