The Onyx Biotec IPO is a promising book-built issue in the pharmaceutical sector, aiming to raise Rs 29.34 crores entirely through a fresh issue of shares. Here’s an in-depth look at the Onyx Biotec IPO, including subscription dates, price band, GMP insights, and more.
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Incorporated in 2005, Onyx Biotec Ltd. (OBL) specializes in sterile pharmaceutical products, primarily focusing on sterile water for injections, dry powder injections, and syrups. Operating two manufacturing facilities in Himachal Pradesh, the company produces and exports high-quality healthcare products across India and overseas.
Overview of Contents
Onyx Biotec IPO Overview
| Onyx Biotec IPO Details | Description |
|---|---|
| IPO Opening Date | November 13, 2024 |
| IPO Closing Date | November 18, 2024 |
| Basis of Allotment Date | November 19, 2024 |
| Refunds Initiation | November 20, 2024 |
| Credit to Demat Account | November 20, 2024 |
| IPO Listing Date | November 21, 2024 |
| Issue Type | Book Built Issue |
| IPO Size | ₹29.34 crores |
| Face Value | ₹10 per share |
| IPO Price Band | ₹58 to ₹61 per share |
| Market Lot | 2000 shares |
| Minimum Investment (Retail) | ₹122,000 |
| Minimum Investment (HNI - 2 Lots) | ₹244,000 |
| Listing Exchange | NSE SME |
| Promoter Shareholding Pre-IPO | Information not provided |
| Promoter Shareholding Post-IPO | 73.47% |
| Post-IPO Paid-up Capital | ₹18.13 crores |
| Market Capitalization (at upper band) | ₹110.61 crores |
| Objects of the Issue | - Upgrading Manufacturing Unit I for large volume parenterals |
| - Installing high-speed cartooning packaging line in Unit II | |
| - Repayment/prepayment of loans | |
| - General corporate purposes | |
| Company Background | - Founded in May 2005 |
| - Specializes in sterile water for injections | |
| - Operates two manufacturing units in Solan, Himachal Pradesh | |
| - Serves both domestic and international markets | |
| Clients | Hetero Healthcare, Mankind Pharma, Sun Pharma, Aristo, Macleods, and others |
| Financial Highlights (in ₹ crores) | - FY22: Revenue ₹44.98, Net Profit ₹3.35 |
| - FY23: Revenue ₹39.62, Net Profit ₹1.85 | |
| - FY24: Revenue ₹53.87, Net Profit ₹3.03 | |
| - 2M FY25: Revenue ₹10.54, Net Profit ₹1.31 | |
| EPS (FY25 Annualized) | ₹2.26 |
| Return on Net Worth (RoNW) | 12.88% (average over three fiscal years) |
| Debt-EBITDA Ratio | 11.33 as of May 31, 2024 |
| Dividend Policy | No dividend history; will adopt policy post-listing |
| IPO Lead Manager | Horizon Management Pvt. Ltd. |
| Registrar | MAS Services Ltd. |
| Market Maker | Giriraj Stock Broking Pvt. Ltd. |
| Comparison with Peers | Peers: Suven Pharma, JB Chemicals (not directly comparable) |
| Promoter's Average Cost of Acquisition | ₹5.17 and ₹5.19 per share |
Onyx Biotec IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹122,000 |
| Retail (Max) | 1 | 2000 | ₹122,000 |
| HNI (Min) | 2 | 4,000 | ₹244,000 |
Manufacturing Facilities and Production Capacity
- Unit I: 638,889 units of sterile water injections per day
- Unit II: 40,000 units of dry powder injections and 26,667 units of dry syrup per day
Onyx Biotec’s Key Clients and Market Presence
Onyx Biotec serves major clients, including Mankind Pharma, Sun Pharmaceutical, Aristo Pharmaceuticals, and Reliance Life Sciences. With over 100 Indian and multinational clients, Onyx is recognized for high-quality and affordable products.
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Objects of the Onyx Biotec IPO
The IPO proceeds will fund the following:
- Upgradation of Unit I for manufacturing large-volume parentals.
- High-speed cartooning packaging line installation at Unit II.
- Prepayment/Repayment of Loans.
- General Corporate Purposes.
Financial Performance of Onyx Biotec Ltd.
Onyx Biotec’s financials reveal a fluctuating top line with inconsistent profit margins:
- FY22: Revenue of Rs 44.98 cr, Net Profit of Rs 3.35 cr
- FY23: Revenue of Rs 39.62 cr, Net Profit of Rs 1.85 cr
- FY24: Revenue of Rs 53.87 cr, Net Profit of Rs 3.03 cr
Note: Earnings are considered fully priced based on FY25 projections, showing potential but with financial fluctuations.
Onyx Biotec IPO GMP and Expected Listing Price
The Onyx Biotec IPO GMP (Grey Market Premium) and expected listing price will provide insights into market sentiment. Based on recent IPO performances, GMP trends will reveal investor expectations closer to the listing date.
| GMP Date | IPO Price | GMP | Sub2 Sauda Rate | Estimate Listing Price | Last Updated |
|---|---|---|---|---|---|
| 10-11-2024 | 61 | ₹5 | 7600 | ₹66 (8.2%) | 10-Nov-2024 19:56 |
| 09-11-2024 | 61 | ₹5 | 7600 | ₹66 (8.2%) | 9-Nov-2024 22:23 |
| 08-11-2024 | 61 | ₹5 | 7600 | ₹66 (8.2%) | 8-Nov-2024 22:24 |
| 07-11-2024 | 61 | ₹0 | -- | ₹ (0%) | 7-Nov-2024 17:32 |
Comparison with Listed Peers
Onyx Biotec has listed Suven Pharma and JB Chemicals as peers. While these companies have stronger market caps, Onyx Biotec IPO price stands at a P/E ratio of 36.53 (based on FY24 earnings), positioning it competitively within the SME market.
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio | Financial statements |
|---|---|---|---|---|---|---|---|
| Onyx Biotec Limited | 2.28 | 2.28 | 18.67 | 26.81 | 12.19 | 3.27 | |
| Suven Pharmaceuticals Limited | 11.8 | 11.8 | 375.82 | 83.92 | 14.64 | 2.64 | |
| JB Chemicals | 35.66 | 35.66 | 188.37 | 53.63 | 18.9 | 10.15 | |
Onyx Biotec IPO Review: Should You Invest?
The Onyx Biotec IPO is priced at a reasonable P/E ratio compared to its competitors and aligns with its current financial performance. However, with fluctuating margins and a highly competitive market, investors should consider long-term growth potential.
Merchant Banker’s Track Record
Horizon Management Pvt. Ltd. has previously handled 9 IPOs, with positive outcomes in most cases. Investors may consider this while evaluating the Onyx Biotec IPO.
Conclusion
Onyx Biotec presents an opportunity for investors looking for exposure to the pharmaceutical sector. However, its financial inconsistency and competitive market raise some caution. Moderate investment with a long-term perspective may be beneficial.