About the Company:
Vanta Bioscience Limited (VBS) is a preclinical contract research organization, offering a host of preclinical safety assessment services for clientele from Pharmaceutical, Medical Devices, Nutraceuticals, Feed Additive, Biotech, Agrochemicals, Cosmetics, and Chemical industries.
Company is headquartered in the USA and operating out of Chennai, India (Research Facility).
In addition they also provide risk assessment services for evaluating the safety of the Active Pharmaceutical Ingredients (API), excipients, extractable and leachables including pharmaceutical impurities resulting due to manufacturing process or due to degradation of the product.
VBS has state of the art facilities and infrastructure necessary for conduct of all kind of toxicology studies for Chemicals,Pharmaceuticals, Cosmetics, Agrochemicals like Pesticides, Insecticides, Excipients, Novel Feed Additives The data generated from these studies are submitted to regulatory agencies worldwide before they are put in use for the consumption of domestic animals and human being.
In addition, VBS also conducts preclinical proof-of-concept (PoC) studies for novel pharmaceuticals and products intended for new indications in variety of animal models of human diseases through a robust process of validation.
VBS also provides expert services for determination of health based exposure limits (e.g. permitted daily exposure (PDE) or allowable daily exposure (ADE) including occupational exposure limits (OEL) for pharmaceutical manufacturers.
One of the major services of VBS is conducting variety of in vitro (cell, tissue and organisms) and in vivo (animal) toxicology studies for its diverse clients as per various regulatory requirements from across the world.
VBS has 56,000 sq. ft. state of art facilities for conducting various pre-clinical studies and allied research.
Objectives of the Issue:
- Augmenting additional working capital requirements
- General Corporate Purposes.
- Listing Benefits.
Management Team:
- Mr.Mohan Krishna Mulakala (Designation: Chairman, Non-Executive and Non- Independent Director)
- Mr.Dopesh Raja Mulakala (Designation: Managing Director)
- Mr.Dr. Vyasmurti Madhavrao (Designation: Whole-time Director)
Why Company has not done any Business in FY 17?
Company had entered into an asset transfer agreement dated February 18, 2016 with Kemin Industries South Asia Private Limited,Chennai for the purchase of fully operational toxicology facility “Vanta Bioscience” situated at Plot K2B, SIPCOT Industrial Estate, Gummidipundi, Chennai.
The purchase include the entire facility including the land & buildings, equipments, materials, spares, laboratory animals to be used in preclinical research and other inventories including all licenses, permits, approvals, registrations, accreditations, IPRs, SOPs and existing manpower. The consideration for the aforementioned purchase was Rs.12 crores.
Company has taken possession of the said pre-clinical CRO facility at Gummidipundi, Chennai and has commenced commercial operations thereat from April 1,2017.
Currently they are mainly doing previous pending research work and are also getting new work from existing clients of ―Vanta Bioscience‖ erstwhile division of Kemin Industries South Asia Private Limited.
In addition to this they are in negotiation with few clients in Agro Chemical, Pharmaceutical and Food Industry.
Since they have commenced the operations on April 1 , 2017,there is no Financial result for FY 17.
What is the Scope of this Business?
Pharmaceutical drug development is an expensive and lengthy process with high risk of failures in the late stages of clinical development.In short this is a “High Risk High Reward” Business.This business requires/has lot of investment,regulations,Highly skilled professionals etc.
The business has huge scope because the multinationals prefer to do “clinical research” in india rather than USA beacuse of stringent rules in other countries.So the business of clinical research is booming in india.
Is this a success Story & Should i Invest in the IPO?
First of all the success or failure of this company will depend on the managements ability to get work from MNC companies.As they have already said that they are in talks with few clients in Agro Chemical, Pharmaceutical and Food Industry.
So we can’t predict wheather they will succeed in bagging those orders,Only time will tell the future of this company.So if you have the ability to take the Risk then you can apply otherwise ignore this IPO.
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 25th September 2017 |
| Issue Closes on:. | 27th September 2017 |
| Issue Price | Rs.50 |
| Face Value | Rs.10 |
| Minimum Lot | 3000 |
| Minimum Investment | Rs.1,50,000 |
| Issue Constitutes | 26.40% |
| Issue Size | Rs.7.56 cr |
| Market Cap | Rs.28.6 cr |
| Listing at | BSE SME |
| Equity Shares Offered | 15,12,000 |
| Equity Shares Prior | 42,16,000 |
| Equity Shares after the issue | 57,28,000 |
