IPO Launch Date, Evaluation, Pricing, and Allocation Particulars of Medicamen Organics

The IPO for Medicamen Organics is scheduled, set to commence on June 21 and close on June 25. This offering is an NSE SME IPO aiming to raise ₹10.54 crores. The price range for Medicamen Organics IPO has been determined to be between ₹32 and ₹34, with a lot size of 4000 shares.

Medicamen Organics Limited is involved in the development, manufacturing, and distribution of a wide variety of pharmaceutical dosages, including generic forms such as Tablets, Capsules, Oral Liquids, Ointments, Gels, Syrups, Suspensions, and Dry powders. They supply these products to both state and central government entities and private institutions, functioning as a contract or third-party manufacturer. Their products are marketed through third-party distributors or on a loan license basis to private pharmaceutical companies, both domestically and internationally. Additionally, the company is strategically focusing on establishing a direct international market presence, as evidenced by their direct export to Burundi in fiscal 2023. Their business model operates on a B2B basis, primarily through contract manufacturing.

Medicamen Organics markets its products throughout India and in various countries across Africa, the CIS, and Southeast Asia, including Congo, Benin, Cameg, Togo, Senegal, Burkina Faso, the Philippines, Myanmar, Mozambique, Burundi, Kyrgyzstan, and Kenya, via third-party distributors.

The company operates two WHO GMP-approved manufacturing facilities located at 60 and 61, Sector 6A, I.I.E. SIDCUL, Ranipur, Haridwar 249403, Uttarakhand, spanning 21,536 sq. ft. These facilities are equipped to produce pharmaceutical formulations and products and include a comprehensive quality control department staffed with experienced and qualified personnel to ensure a smooth manufacturing process. They have an in-house testing laboratory with the necessary infrastructure to test raw materials and finished products, ensuring compliance with quality standards. Medicamen Organics is ISO 9001:2015 certified. Their core competencies lie in product development and documentation, which provide a competitive edge in the market as they continually engage in research and development and the launch of new products. This results in a constantly evolving product list and competitive market pricing. Their product portfolio includes 84 products, covering a broad range of drug categories such as Anti-Bacterial, Anti-Diarrheal, Anti-Fungal, Anti-Malarial, Anti-Diabetic, Proton Pump Inhibitors, Anti-Histamines, Anti-Hypertensives, Anti-Lipidemics, Anti-Parasitics, Multivitamins, Multiminerals, and Non-Steroidal Anti-Inflammatory Drugs (NSAIDs).

Medicamen Organics consistently supplies quality products year-round, adhering to necessary safety standards. As a quality-conscious company, they continually strive to expand their product line, seeking complementary products to enhance their range.

Medicamen Organics IPO Details

IPO Date June 21, 2024 to June 25, 2024
Listing Date [.]
Face Value ₹10 per share
Price Band ₹32 to ₹34 per share
Lot Size 4000 Shares
Total Issue Size 3,100,000 shares (aggregating up to ₹10.54 Cr)
Fresh Issue 3,100,000 shares (aggregating up to ₹10.54 Cr)
Issue Type Book Built Issue IPO
Listing At NSE SME
Share holding pre issue 8,600,000
Share holding post issue 11,700,000
Market Maker portion 172,000 shares

Medicamen Organics IPO Timeline (Tentative Schedule)

IPO Open Date Friday, June 21, 2024
IPO Close Date Tuesday, June 25, 2024
Basis of Allotment Wednesday, June 26, 2024
Initiation of Refunds Thursday, June 27, 2024
Credit of Shares to Demat Thursday, June 27, 2024
Listing Date Friday, June 28, 2024
Cut-off time for UPI mandate confirmation 5 PM on June 25, 2024

Key Performance Indicator

ROE 19.90%
ROCE 14.50%
Debt/Equity 0.83
RoNW 15.83
P/BV 2.39
PAT Margin (%) 9.51

Objects of the Issue (Medicamen Organics IPO Objectives)

The company proposes to utilize the Net Proceeds from the Issue towards the following objects:

  • Financing expenses intended for product registration in international markets
  • Upgrading the plant and boosting production capacity
  • Providing for the company’s working capital needs
  • General corporate purposes

Medicamen Organics IPO Review (Avoid)

The company operates in a highly competitive and fragmented segment of pharmaceutical products. It has shown average financial performance in the reported periods, with a significant improvement in the bottom line for FY24. Based on FY24 earnings, the issue seems fully valued. Knowledgeable investors might consider allocating moderate funds for potential long-term gains.

Medicamen Organic Financial Information (Restated Standalone)

Period Ended 31 Mar 2024 31 Mar 2023 31 Mar 2022 31 Mar 2021
Assets 3,858.07 3,211.98 2,707.21 2,634.37
Revenue 2,528.96 2,296.24 2,118.67 2,505.96
Profit After Tax 240.41 95.78 9.23 29.81
Net Worth 1,518.40 851.71 755.92 746.72
Reserves and Surplus 658.40 251.71 155.92 146.72
Total Borrowing 1,265.65 1,179.50 1,024.57 958.97
Amount in ₹ Lakhs

Medicamen Organics Company Financial Report

₹ in Crores
Year Revenue Expense PAT
2021 ₹25.06 ₹24.57 ₹0.30
2022 ₹21.19 ₹20.93 ₹0.09
2023 ₹22.96 ₹21.60 ₹0.96
September 2023 ₹11.33 ₹9.57 ₹1.29

Company Promoters

  • Mr. Bal Kishan Gupta