Aristo Bio-Tech and Lifescience IPO is coming out with an Issue of 18,12,800 Equity Shares of Face Value of ₹10/- for Cash at a Price of ₹72/- Per Equity Share (Including a Share Premium of ₹62/- per Equity Share). This is aggregating to ₹1305.22 Lakhs, of which 91,200 Equity Shares of Face Value of ₹ 10/- each at a price of ₹72/- aggregating to ₹65.66 Lakhs will be reserved for subscription by Market Maker and Net Issue to Public of 17,21,600 Equity Shares of Face Value of ₹10/- each at a price of ₹72/- aggregating to ₹1239.55 Lakhs. Investors can bid for a minimum of 1,600 shares, or in its multiples thereafter, thus entailing a minimum investment of Rs. 115,200 in the IPO

IPO open:16-Jan-23
IPO Close:19-Jan-23
IPO Size (Rs.)~ ₹ 13.05 Crore
IPO Size (shares) 17,21,600 Shares
Face Value:₹10 
IPO Price Band:₹72
Minimum Lot1600
IPO Listing on:NSE SME
NII Quota:50% of  net offer
Retail Quota:50% of net offer
 Lead ManagerBeeline Capital Advisors
  • Company is an agrochemical company which is engaged in the manufacturing, formulation, supplying, packaging and job work services of various Pesticides, Insecticides, Herbicides, Fungicides, Plant Growth Regulators and a wide variety of other Agrochemicals for India as well as for Export.
  • company is promoted by Mr. Narendra Singh Barhat, Mrs. Kusum Narendra Singh Barhat and Mr. Ketankumar Harkantbhai Joshi
  • It has 182 products registered with CIB & RC and is an ISO 9000:2015 and SMERA SME3 certified company. SME 3 implies Good creditworthiness in relation to other SMEs.
  • Products:
    • Herbicides/Weedicides -4 products
    • Fungicides – 5 products
    • Plant Growth Regulator – 2 products
    • Insecticides – 12 products
  • Its agrochemical and pesticide formulation & packaging unit is located in Vadodara, Gujarat and has the latest quality control, manufacturing and packaging machinery and equipments.
  • Aristo Bio-Tech and Lifescience supplies its products across 20 states in India and 15 countries.
  • The company does Job work for its customers. As of September 30, 2022, the Company has 55 employees on the payroll.

Aristo Bio-Tech and Lifescience IPO: Financials

Particulars/ Rs Cr. H1FY23202220212020
Total Revenue129.0749166.03167.2296201.2394
Profit after Tax2.5891.46171.07571.0074
Net Asset Value Per Share (₹)34.929.7126.7924.63
Total Borrowings29.355325.4822.247719.7097
Share Capital4.9954.9954.9954.995
Earnings Per Share5.182.932.152.02
Net Worth17.431514.8413.380812.3051
Post issue Share Capital6.8078
IPO price72
EPS FY222.15
PE Fy2233.53
EPS annualized7.61
Market cap49.02
Market Cap/sales0.30


S. No.Name of CompanyFV  (₹)CMPRevenuesPERoNW (%)NAV per share
1Aristo  Bio-Tech  1078166.0333.53 (fy22) 
9.47 (fy23 ann)
2Dhanuka Agritech 27151477.7815.221.95206.19
3Meghmani Organics111024988.1320.857.65

Salient Points

  • Aristo Bio-Tech and Lifescience IPO Issue will constitute 26.63% of the Post Issue paid up Equity Share Capital of the Company. Thus following the completion of the Issue, Promoter and Promoter Group will hold together 73.37% of post-Issue Equity Share capital.
  • Company intends to primarily use the Net Proceeds towards working capital requirement and for general corporate purposes.
  • Aristo Bio-Tech and Lifescience has not paid any dividends in the last five Financial Years.
  • As per management the company’s exports have increased on the account of low-cost, manufacturing, competitive pricing and strong presence in generic pesticide manufacturing.
  • Top ten customers have contributed 57.00%, 42.45% and 45.78% of revenues for the period ended March 31, 2022, March 31, 2021 and March 31, 2020.
  • For FY2022, Aristo Bio-Tech and Lifescience registered a revenue of Rs 16,603 lakhs as compared to Rs 16,723 lakhs in FY2021. The revenue for H1FY23 stood at Rs 12,907 lakhs.
  • It registered an EBITDA of Rs 550 lakhs in FY2022 as compared to Rs 436 lakhs in FY2021. EBITDA for H1FY2023 stood at Rs 509 lakhs
  • Post issue Debt to equity ratio will stand at 0.23
  • Social media reports indicate a GMP of Rs. 12-14 on the issue price.
  • PE ratio is 33.53x (fy22 earnings)  and 9.47x (fy23 annualized)
  • The IPO looks bit risky to me due to big jump in profits in H1Fy23 and if it can sustain these margins.
  • Though Aristo Bio-Tech and Lifescience IPO can give a small listing gain or otherwise due to current speculation in SMEs and due to lack of other opportunities at present, I find it little risky and fundamentals below average. However, the listing SMEs are less driven by fundamentals.
  • Aristo Bio-Tech and Lifescience IPO is likely to see heavy subscription due to funds available with investors post the Chaman Metals SME issue. I may put some application at last moment if there is any further input but knowing well that it is risky.
  • SME IPO are more volatile and I generally exit on the listing day, many times in pre open session.
  • Hem securities as lead manager, SME IPOs have in general performed well in the markets.
  • Please do your own diligence as SME IPOs are more volatile and risky than mainboard IPOs and need more funds.

  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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