Hamps Bio Limited, a prominent name in the marketing and distribution of pharmaceutical products, is set to open its Initial Public Offering (IPO) for subscription. Here’s a comprehensive breakdown of the Hamps Bio IPO, including its price band, grey market premium (GMP), subscription dates, and other essential details.
Key Highlights of the Hamps Bio IPO
- IPO Open and Close Dates: The Hamps Bio IPO is scheduled to open on December 13, 2024, and close on December 17, 2024.
- Listing Date: Shares are expected to list on the BSE SME platform on December 20, 2024.
- Offer Size: The IPO comprises a fresh issue of 12.2 lakh shares, aggregating up to ₹6.22 crore.
- Price Band: The issue is priced at ₹51 per share.
- Minimum Investment: Retail investors need to bid for at least 2,000 shares per lot, requiring a minimum investment of ₹1,02,000.
Subscription Timeline and Allotment Process
The timeline for the Hamps Bio IPO is structured to ensure a smooth allotment and listing process:
- Basis of Allotment Finalization: December 18, 2024
- Credit of Shares to Demat Accounts: December 19, 2024
- Refund Initiation for Non-Allottees: December 19, 2024
- Listing on BSE SME Platform: December 20, 2024
Investors are required to confirm UPI mandates by 5 PM on December 17, 2024, to validate their applications.
Lot Size and Investment Details
The IPO is structured as a fixed price issue. Below are the details for retail and High Net-worth Individual (HNI) investors:
| Application Type | Lots | Shares | Investment Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 2,000 | ₹1,02,000 |
| Retail (Maximum) | 1 | 2,000 | ₹1,02,000 |
| HNI (Minimum) | 2 | 4,000 | ₹2,04,000 |
Company Overview: Hamps Bio Limited
Incorporated in 2007, Hamps Bio Limited specializes in the marketing and distribution of pharmaceutical products, including tablets, syrups, capsules, injectables, and nutritional supplements. The company’s product portfolio is divided into two major segments:
- Pharmaceutical Products marketed under the Hamps brand.
- Freeze-Dried and Frozen Products under the FzyEzy brand, catering to both B2B and B2C markets.
Hamps Bio operates through a robust network of over 50 distributors and e-commerce platforms like Amazon, Flipkart, and Jio Mart, with a presence in 6 countries and 22 Indian states.
Competitive Strengths
Hamps Bio’s competitive edge includes:
- Expert Leadership: Strategic growth driven by experienced promoters and management.
- Extensive Distribution Network: A wide network complemented by a growing e-retail presence.
- Diverse Product Portfolio: Over 180 products spanning pharmaceuticals and FMCG sectors.
- Global Reach: A well-established presence in both domestic and international markets.
Financial Performance
The company has shown steady growth in financial metrics over the years:
| Financial Year | Revenue (₹ Lakhs) | Profit After Tax (₹ Lakhs) | Net Worth (₹ Lakhs) |
|---|---|---|---|
| FY2024 (Oct) | 436.42 | 34.08 | 370.78 |
| FY2024 (Mar) | 650.13 | 50.07 | 337.42 |
| FY2023 | 558.49 | 35.90 | 136.30 |
| FY2022 | 534.46 | 12.15 | 100.57 |
Key Metrics:
- Return on Equity (ROE): 21.14%
- Return on Capital Employed (ROCE): 18.31%
- Debt-to-Equity Ratio: 0.31
Grey Market Premium (GMP) and Market Sentiment
As of the latest update, the GMP for Hamps Bio IPO stands at ₹21, reflecting positive investor sentiment. However, GMP figures are subject to market conditions and should be used as an indicator, not a decision-making factor.
IPO Reservation Details
The allocation of shares is as follows:
| Investor Category | Shares Offered | Percentage |
|---|---|---|
| Retail Investors | 5,79,000 | 47.46% |
| Non-Institutional Investors (NII) | 5,79,000 | 47.46% |
| Market Maker | 62,000 | 5.08% |
Promoters and Objectives of the Issue
Hamps Bio’s promoters include Herrik Shah, Shrenik Shah, Pallavi Shah, and their associated entities. The primary objectives of the IPO are:
- Acquisition of Plant and Machinery for the FMCG division.
- Enhancing Brand Visibility across markets.
- General Corporate Purposes to support growth initiatives.
Is Hamps Bio IPO a Good Investment?
While Hamps Bio has demonstrated steady growth, some analysts consider the IPO aggressively priced based on the company’s earnings and market capitalization of ₹22.22 crore. Potential investors should weigh the company’s growth potential against the risks of its small equity base and competitive pricing.