Speciality Medicines IPO: Pharma company Speciality Medicines launched its initial public offering (IPO) on BSE SME today, March 20. The ₹29-crore public offering is available for bidding till Tuesday, March 24.
Speciality Medicines IPO is entirely a fresh issue of 0.24 crore shares, with no offer for sale component. This means all proceeds will be received by the company. The IPO is priced in the range of ₹117 to ₹124 apiece.
The company plans to use ₹12.68 crore from the funds raised for setting up an R&D centre, ₹2.99 crore for product registration and sale in international markets, and ₹1.66 crore will be spent on marketing and promotional activities. Lastly, ₹8 crore will be deployed to meet working capital needs and the rest for general corporate purposes.
Investors can apply for the IPO in lots of 1000 shares. For retail investors, the minimum application size is 2000 shares, resulting in an investment of ₹2,48,000 at the upper end of the price band.
Unistone Capital is the book running lead manager to the SME IPO and Skyline Financial Services is the registrar of the issue.
Speciality Medicines IPO subscription
According to BSE data, Speciality Medicines IPO was subscribed 15% as of 11.15 am as it garnered bids for 3,56,000 shares as against 23,50,000 shares on offer. The retail portion was subscribed 2% so far, while the non-institutional investor (NII) quota was subscribed 27%.
Lastly, the qualified institutional buyer (QIB) segment remained unsubscribed.
Speciality Medicines IPO GMP
The grey market premium (GMP) for Speciality Medicines was lacklustre. According to the websites tracking the unofficial market, Speciality Medicines IPO GMP today is ₹0. This means that shares of Speciality Medicines are trading at neither a premium nor a discount to the offer price.
At the prevailing GMP, Speciality Medicines IPO listing price could be the same as the offer price. The GMP signals investor willingness to pay over and above the issue price for an IPO.
Shares of Speciality Medicines are slated to list on the BSE SME platform on March 30.
About the company
Speciality Medicines is engaged in the business of marketing and distribution of finished formulations of specialty pharmaceutical products, comprising high-cost oral and injectable medications used in the treatment of complex and chronic medical conditions in therapeutic areas such as oncology, immunology, neurology, and rare diseases.
The company operates through two integrated business models: Manufacturing, on a contract manufacturing basis, approved finished formulations and distributing them internationally; and marketing and distribution of specialty pharmaceutical products sourced from manufacturers.
