About the Company:
Medico Remedies Limited, is a pharmaceutical formulation manufacturing company with manufacturing and marketing capabilities in formulation with focus on anti-infective, Beta-Lactums, cephalosporins, antimalarial, antiretroviral, anti-ulcer drugs and antacids, vitamins, haematinics and other supplements.
Company began its operations in the year 1994 with manufacturing and servicing of diuretics, anti-malarials, NSAIDS tablets, anti-reterovirals, anti-ulcer drugs and anti-acids tablets.
Over the years company has expanded their scale and scope of operations and currently they are engaged in manufacture of formulations for various medicines.
They manufacture and market a variety of formulation products to their clientele for their customized formulation needs.They have also started a formulations unit for manufacturing of a variety of FDFs in the form of tablets, capsules and syrups.
They cater to the requirements of wholesalers or traders of formulations products by providing a wide range of products.Currently Medico Remedies manufactures more than 200 products.
Further in addition to the above, Company also has manufacturing and marketing capabilities in other drugs such as NSAIDS, antihistaminic, antidiabetics, cardio vascular drugs, diuretics, anti-epileptics, combination drug kits, syrups and cream & gel for various therapeutic segments.
Company’s clients includes Indian as well as foreign pharmaceutical companies like Anphar Limited, Saad Medical, Manfes Pharmaceuticals & Chemical Industries,Award Global Company Limited, Directorate of Health Services (DHS, Maharashtra) to name a few.
Company also earns revenue from the sale of licenses such as FMS license, FPS license and MESI license. The income from sale of such licenses amounts to Rs.1.15 crores, which is 2.13% of their total revenue during the financial year 2016-17.
Management Team:
- Mr. Haresh Mehta (Designation: Chairman & Whole-time Director)
- Mr. Harshit Mehta (Designation: Managing Director)
- Mrs. Rita Mehta (Designation: Whole-time Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Mr. Haresh Mehta | 7,47,000 | 20.86 |
| Mrs. Rita Mehta | 4,91,400 | 20.45 |
| Mr. Harshit Mehta | 3,98,000 | 31.87 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoter | ||
| Mr. Haresh Mehta | 23.34% | 16.80% |
| Mrs. Rita Mehta | 15.36% | 10.64% |
| Mr. Harshit Mehta | 12.44% | 9.59% |
| Promoter Group Entities | 48.47% | 36.16% |
| Total | 99.59% | 73.19% |
Objectives of the Issue:
Offer for Sale (OFS): (Around Rs. 1.5 crores)
- Company will not receive any proceeds of the Offer for Sale by the Selling Shareholders.
Fresh Issue: (Around Rs. 9.42 crores)
- Repayment of loans.
- Funding expenditure for General Corporate Purposes.
- Issue related expenses.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 |
|---|---|---|---|---|---|
| Revenue | 33.80 | 44.98 | 51.10 | 66.94 | 54.78 |
| Net Profit | 0.43 | 0.63 | 0.79 | 1.12 | 1.63 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Medico Remedies Ltd | 10 | 5.09 | 19.64 | 9.94% | 51.16 |
| Biofil Chemicals & Pharmaceuticals Ltd | 5 | 1.10 | 12.67 | 8.95% | 6.16 |
| Laurus Labs Ltd | 10 | 22.14 | 23.27 | 14.91% | 128.43 |
| Ajanta Pharma Ltd | 2 | 56.79 | 30.99 | 33.23% | 170.03 |
| Jenburkt Pharmaceuticals Ltd | 10 | 28.96 | 16.59 | 25.10% | 115.40 |
| Shree Ganesh Remedies Ltd | 10 | 3.96 | 9.09 | 15.81% | 25.07 |
| Beta Drugs Limited | 10 | 8.69 | 9.78 | 70.18% | 12.39 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 29th January 2018 |
| Issue Closes on:. | 31st January 2018 |
| Issue Price | Rs.100 |
| Face Value | Rs.10 |
| Minimum Lot | 1200 |
| Minimum Investment | Rs.1,20,000 |
| Issue Constitutes | 26.49% |
| Issue Size | Rs.10.99 cr |
| Market Cap | Rs.41.49 cr |
| Listing at | BSE SME |
| Equity Shares Offered (Fresh) | 9,49,200 |
| Equity Shares Offered (OFS) | 1,50,000 |
| Total Equity Shares Offered (Fresh + OFS) | 10,99,200 |
| Equity Shares Prior to the Issue | 32,00,000 |
| Equity Shares after the issue | 41,49,200 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 5.09 | 19.64 | 9.94 | 51.16 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 20% |
| Company Contact Info: |
|---|
| Medico Remedies Ltd 50, Juhu Shopping Center, Gulmahor Cross, Road No. 9, Juhu, Mumbai – 400049 Tel No.: +91 22 2670 1055/66 Fax No.: +91 22 2628 1059 Email: info@medicoremedies.com Website: www.medicoremediesindia.com |
| IPO Registrar Info: |
|---|
| CAMEO CORPORATE SERVICES LIMITED Subramanian Building No. 1, Club House Road Chennai – 600 002 Tel No.: +91 44 2846 0390/ 1989 Fax No.: +91 44 2846 0129 Email: cameo@cameoindia.com Website: www.cameoindia.com |
| Lead Manager to the Issue: |
|---|
| ARYAMAN FINANCIAL SERVICES LIMITED 60, Khatau Building, Ground Floor Alkesh Dinesh Modi Marg, Fort, Mumbai – 400 001 Tel No.:+91 6216 6999 Fax No.:+91 222263 0434 Website: www.afsl.co.in |
