Medico Remedies Ltd

Medico Remedies

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:

  1. Mr. Haresh Mehta (Designation: Chairman & Whole-time Director)
  2. Mr. Harshit Mehta (Designation: Managing Director)
  3. 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
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


IPO Registrar Info:
Subramanian Building No. 1,
Club House Road
Chennai – 600 002
Tel No.: +91 44 2846 0390/ 1989
Fax No.: +91 44 2846 0129


Lead Manager to the Issue:
60, Khatau Building, Ground Floor
Alkesh Dinesh Modi Marg, Fort, Mumbai – 400 001
Tel No.:+91 6216 6999
Fax No.:+91 222263 0434