Review By on August 24, 2017
ANG Lifesciences India Ltd (ANGL) is engaged in the business of manufacturing and marketing of finished pharmaceutical formulations in a dosage form of sterile dry powder injection vials. ANGL is ISO-9001:2008 certified and has the most modern & sophisticated plant, equipments, technique and manpower. The planning and construction of plant has been done to conform to the regulatory requirements as per the norms of WHO G.M.P. and G.L.P. as per schedule-M (revised). It manufactures products in compliance with GMP requirements. ANGL's products include sterile dry powder vials for Anti Biotics, Anti Ulcerant, Gluco corticoid and Anti inflammatory, Anti malarial and Anesthetic. The pharmaceuticals market is highly competitive and fragmented, and ANGL faces competition from various domestic and international manufacturers. However, Company that currently operates at an average capacity utilization of 70% for last two fiscals' hopes to achieve 90% plus in coming years. ANGL is likely to consider acquisition options as well to enhance its manufacturing capacities. Its customer list includes Wockhardt, DHS Maharashtra, Global Hospitals, Elder, Emcure, BPPI, Govt. of Haryana, Hetero Healthcare etc.
To part finance its working capital and general corpus funds requirements, the company is coming out with a maiden IPO of 1500800 equity share of Rs. 10 each at a fixed price of Rs. 80 per share to mobilize Rs. 12.01 crore. Issue opens for subscription on 29.08.17 and will close on 31.08.17. Minimum application is to be made for 1600 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Guiness Corporate Advisors Pvt Ltd. and Bigshare Services Pvt Ltd is the registrar to the issue. Issue constitutes 28.95% of the post issue fully diluted equity capital of the company. ANGL's entire current capital is issued at par. Post issue, company's paid up equity capital of Rs. 3.68 crore will stand enhanced to Rs. 5.18 crore.
On performance front, ANGL has reported turnover/net profits of Rs. 34.62 cr. / Rs. 0.19 cr. (FY14), Rs. 36.94 cr. / Rs. 0.40 cr. (FY15), Rs. 55.13 cr. / Rs. 1.65 cr. (FY16) and Rs. 67.92 cr. /Rs. 2.92 cr. (FY17). ANGL has posted average EPS of Rs. 5.65 and average RoNW of 32.96% for last three fiscals. Issue is priced at a P/BV of 3.8 plus. If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of 14 plus against peers trading at a P/E ranging from 13 to 72. Thus pricing appears to be reasonable.
On merchant banker's front, this is the 17th mandate in last three years and out of recent 10 listings, four opened at a discount and the rest at par or with mere premium to offer price on the day of listing.
Conclusion: Investors may consider investment for medium to long term.
Review By on August 24, 2017
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of ANG Lifesciences India Ltd. offers an early investment opportunity in ANG Lifesciences India Ltd.. A stock market investor can buy ANG Lifesciences IPO shares by applying in IPO before ANG Lifesciences India Ltd. shares get listed at the stock exchanges. An investor could invest in ANG Lifesciences IPO for short term listing gain or a long term.
Read the ANG Lifesciences IPO recommendations by the leading analyst and leading stock brokers.
ANG Lifesciences IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the ANG Lifesciences IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is ANG Lifesciences IPO?"
Our recommendation for ANG Lifesciences IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the ANG Lifesciences IPO.
The ANG Lifesciences IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit ANG Lifesciences IPO allotment status to check.
