Onyx Biotec Limited is a pharmaceutical company specializing in the production of sterile water for injections. It also operates as a contract manufacturer, offering a broad range of dry powder injections and dry syrups for both domestic and international markets. Onyx Biotec IPO mulls to raise Rs. 29.34 crores. The issue is entirely a fresh issue of 48.1 lakh shares.
| IPO opens | November 13, 2024 |
| IPO Closes | November 18, 2024 |
| IPO Size (Rs.) | ₹29.34 Cr |
| Breakup | Fresh issue only |
| Face Value: | ₹ 10 |
| IPO Price in Rs : | ₹58 to ₹61 per share |
| Minimum Lot | 2000 Shares |
| Listing At | NSE SME |
| QIB Quota | ~50% |
| NII Quota | ~15% |
| Retail Quota | ~35% |
| Lead Manager | Horizon Management Private Limited |
| Registrar | Mas Services Limited |
| Market maker | Giriraj Stock Broking |
About Onyx Biotec IPO
- Founded in May 2005, Onyx Biotec Limited is a pharmaceutical company specializing in the production of sterile water for injections.
- It also operates as a contract manufacturer, offering a range of dry powder injections and dry syrups for both domestic and global markets.
- Its manufacturing units are located in Solan, Himachal Pradesh.
- It has 2 units.
- Unit I has a daily production capacity of 638,889 units of sterile water for injections, while Unit II produces 40,000 units of dry powder injections and 26,667 units of dry syrup per shift.
- Promoters of the company are Sanjay Jain, Naresh Kumar and Fateh Pal Singh.
Financials: Danish Power IPO
| Particulars | 2m 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue from operations | 1,052.81 | 5,374.88 | 3,949.19 | 4,486.14 |
| Profit after Tax | 130.76 | 303.16 | 184.46 | 335.29 |
| Net Worth | 2,618.64 | 2,487.87 | 1,820.16 | 1,637.59 |
| Net Asset Value | 19.66 | 18.67 | 15.42 | 13.87 |
| Total borrowings | 3,156.14 | 3,078.04 | 2,922.83 | 1,224.39 |
| Post issue Share Capital | 1813 | |||
| FV | 10.0 | |||
| IPO price | 61.0 | |||
| EPS Fy24 | 1.7 | |||
| PE Fy24 | 36.5 | |||
| EPS Fy25 (annualized) | 4.3 | |||
| PE Fy25 (annualized) | 14.1 | |||
| Market cap in Lacs | 11,059 | |||
| Market cap / Sales | 2.06 |
Onyx Biotec IPO: Anchors
Onyx Biotec IPO: Salient Points
- One of the prominent contract manufacturers in sterile manufacturing.
- Net issue proceeds use:
| Sr. No. | Particulars | Amount (₹ in Lakhs) |
| 1 | Funding capital expenditure requirement of Company towards purchase of Embroidery Machines for expansion | 557.41 |
| 2 | Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company | 400 |
- Clients:
- Onyx Biotec serves over 100 Indian and multinational pharmaceutical companies.
- Product Mix:
- Sterile Water for Injections 59.55%
- Dry Powder Injections 38.21%
- Dry Powder Syrups 2.25%
- Peers: None
- Capacity Utilization: (Unit I: 59.87%) (Unit II: 40.90%)
- PE Fy25 (annualized) ; 14.1x ; PE Fy24: 36.5x
- Right now they export indirectly. Will be taking up direct export to some african nations, CIS.
- Existing unit 1 & Unit 2 is being upgraded to support new product lines.
- I intend to apply in Onyx B to extended to make iotec IPO. If present trend in 2 months can continue, the valuations are not too streched. Has good clients like Glenmark, Sun Pharma, Akums etc.
- GMP as reported on social media is around 25%.
- Lead manager Hem Securities Limited has quite decent record and enjoys good standing.
- SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
- This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared 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. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.