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Remus Pharmaceuticals IPO is planning to raise INR 47.69 crore through an initial public offering which opened for subscription on May 17, 2023, and closes on May 19, 2023. The Remus Pharmaceuticals IPO consists of entirely a fresh issue of 3,88,000 equity shares of face value of INR 10 each. The price band for the IPO is INR 1150-1229 per share. Investors can bid in minimum application for 100 shares and in multiples thereof. The company is engaged in marketing and distribution of finished formulations of pharmaceutical drugs mainly on B2B basis.

.Anchor Investors

Remus Pharmaceuticals Limited’s Initial Public Offering (IPO) attracted two anchor investors: Chhattisgarh Investments Limited, NAV Capital VCC – NAV Capital Emerging Star Fund. The anchor investors committed a total of ₹13,58,04,500 in the IPO, which is 28.48% of the total issue size. Chhattisgarh Investments Limited is a state-owned investment company, while NAV Capital VCC is a venture capital firm while NAV Capital VCC is a venture capital firm.

About Remus Pharmaceuticals

• The company is engaged in marketing & distribution of finished formulations of pharmaceutical drugs. The company also deals in API (Active Pharmaceutical Ingredient). We also provide technical consultancy services to various distributors for preparation of reports on the dossiers of the products to be registered by them in various countries.

• The Company is majorly engrossed in the pharmaceutical business involving marketing, trading and distribution of wide range of pharmaceutical finished formulations and products. Depending upon business requirements, it gets finished pharmacuetical formulations manufactured on loan license or contract manufacturing.
• It has presence through registered and/or under registration products in countries namely Bhutan, Bolivia, Chile, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Kuwait, Madagascar, Malaysia, Hong kong, Myanmar, Panama, Trinidad and Tobago, Uzbekistan, Venezuela, Vietnam.
• The product portfolio consists of 429 products, as on January 31, 2023. It operates under different brand names across the
• globe.
• The product portfolio comprises of vide range of therapeutic drugs.
• As on January 31, 2023, we have business to business supply agreements with 58 domestic distributors and 139 international distributors for distribution and/or contract manufacturing supply.

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Remus Pharmaceuticals IPO: Financials

Salient Points

• The proceeds from the IPO will be used to fund the company’s working capital requirements, Funding investments for acquisitions and general corporate purposes..
• The company has a very diversified product portfolio of branded pharmaceuticals as well as generics.
• The company is a small company and New entrant in the Indian pharmaceutical marketit is not clear how successful it will be facing competition from larger, more established pharmaceutical companies
• The company has availed of a term loan facility of Rs. 10 crores from Bank of Baroda in February 2023. and development to develop new and innovative products.
• The company primarily caters to export markets in underdeveloped and developing nations:

• Its Pharma business operations are supported by various contract manufacturers having facilities which are WHO GMP Compliant.
• As on the date of this Red Herring Prospectus it had 30 active loan license contract manufacturing facilities.
• Remus Pharmaceuticals core strength lies in getting its approved formulation manufactured through contract manufacturers under loan licence and marketing of formulations under its own brand through marketing network across geographies.

• The company sells its products to distributors in export markets ( B2B)
• A major portion of company’s performance are shown in table below.

• Its PE ratio is 53x (fy22 earnings)  and 22x (fy23 ). There has been a big jump in revenues and profits in FY22-23. Company appears to be on the growth path
• I intend to apply in Remus Pharmaceuticals IPO as a risky investment even as Iam not sure of underlying fundamentals. This is mainly due to current performance of SME issues on bourses. If reported figures are correct, growth momentum seems to be strong through valuations are streched and there is large increase in revenues and profits in last 9 months. It is difficult to assess the company as it follows a very different model.
• SME IPO are more volatile and risky.
• Beeline Capital Advisors is the lead manager to the issue and some issues handled by it were Sotac Pharmaceuticals, Vertexplus Technologies, Dev Labtech Venture Limited, Aristo Bio-Tech,Viaz tyres, Transvoy Logistics, Jay Jalaram Technologies Ltd, RBM Infracon Limited, Viviana Power Tech India. Moast had a reasonable to moderate run on the bourses.
• GMP as reported on social media has been showing lot of fluctuation with some sources indicating Rs, 70 and some Rs, 200+ in last day. Kostak rates are reported at Rs. 20000+.
• 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.