- Date : 26/08/2022
- Read: 2 mins
Dipna Pharmachem Limited IPO opens from 25th to 30th August
This year has been good for SME IPOs like Jayant Infratech, Agni Green power, Sailani Tours & Travels, etc. SME IPOs have been more successful than mainstream IPOs. The IPO for Dipna Pharmachem Limited opened on 25th August and closed on 30th August. The company is planning to raise Rs 15.2 crores via this IPO at a fixed price of Rs 38 per share.
The entire issue is for fresh proceeds, and there is no offer for sale involved. The grey market premium for this IPO is positive. You can apply to the IPO via net banking and the ASBA facility. Read to know more details about the IPO.
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Dipna Pharmachem IPO details
The company has significantly reduced its debt recently. The company is raising money to meet its general corporate expenses and invest in joint ventures abroad for overseas expansion. The revenue growth for the firm is a massive 132% in FY22 vs FY21. The net profit growth is 4670% in the same period. The future of the firm looks promising.
As it is in the pharma industry, the pharma industry growth in India is good. India is the largest producer of vaccines globally. Also, India is the largest manufacturer of generic medicines, with 20% of the global market share. India has the third largest pharma production in the world.
The IPO is reasonably priced as well. It is available at a PE ratio of 26 vs SunPharma’s 27, Cipla’s 33 and Dr Reddy’s 23. The decent PE ratio is an added bonus, and the firm is reasonably priced.
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To succeed in the pharma business, you need good client relations and networks. The company has been surviving well for a decade, and this means that the company has consistent clients in its portfolio. But before applying to the IPO, you should read the DRHP of the issue. The issue is reasonably priced at a price of Rs 38 per share and a PE ratio of 26 in the fast-growing pharma sector. Also, the pharma sector has a moat as the entry of new players is difficult owing to the knowledge required to start a pharmaceutical business.
Related: What did the IPO's of 2021 teach us?