Sudarshan Pharma Industries IPO Review & Recommendations

Sudarshan Pharma Industries IPO Review by Dilip Davda (Avoid)

[Dilip Davda]  SPIL which failed to sail through its maiden IPO in June 2019 is trying for the second time for nearly double the amount. It is spending whooping Rs. 7.90 cr. (over 10 times projected for the first try) for this IPO process. It has changed the lead manager for this offer and the list of listed peers. Higher borrowings (Rs. 49.41 cr.), and tax notices of Rs. 7.41 cr. (excluding interest/penalty thereon) raises concern. Though it has posted growth in its financial data, it is fully mirrored including the near-term positives in the asking price. Off late we are witnessing a faded out of fancy for the pharma/healthcare segment post-pandemic. There is no harm in skipping this “High-Risk/Low-Return” bet. Read detail review...