- Our view
- May Subscribe
- Market cap then
- ~INR 489.25 Cr.
- Price band
- INR 120 to 126 per share
Amanta Healthcare manufactures sterile liquid parenteral products at its facility in Kheda, Gujarat. We recommend May Subscribe to its IPO: capacity expansion, an established promoter and a broad product portfolio are balanced by high debt, competition and exposure to packaging-material costs.
About Amanta Healthcare
Incorporated in 1994 in Gujarat, Amanta Healthcare develops, manufactures and markets sterile liquid parenteral products from its facility in District Kheda. Its manufacturing lines cover Large Volume Parenterals (LVP), Small Volume Parenterals (SVP) and Steriport, with total installed capacity of 33.19 Crore units per annum and utilization of 96% in FY25. Its products serve six therapeutic segments: fluid therapy, formulations, diluents, ophthalmic, respiratory care and irrigation solutions.
Amanta Healthcare IPO Details
| Particulars | Details |
|---|---|
| Price Band (INR) | 120 to 126 |
| Face Value (INR) | 10 |
| Implied M.Cap (INR Cr.) | 489.25 |
| Exchange | NSE & BSE |
| Min. Lot Size (Retail | sHNI | bHNI) | 119 | 1,666 | 7,973 |
| Issue Opens on | 01-Sep’25 |
| Issue Closes on | 03-Sep’25 |
| Listing Date | 09-Sep’25 |
| Fresh Issue of Shares (#) | 1,00,00,000 |
| Offer for Sale (#) | - |
| Funds Mobilized: Fresh Issue of Shares (INR Cr.) | 126.0 |
| Funds Mobilized: Offer for Sale (INR Cr.) | 0.0 |
Objects of Issue
- Steriport manufacturing line: Funding capex for setting new manufacturing line: INR 70.00 Cr.
- SVP manufacturing line: Funding capex for setting new manufacturing line: INR 30.13 Cr.
- General Corporate Purpose: [●]
Strengths
- Planned Steriport expansion: Capacity is planned to rise from 6.62 Cr. units to 12.01 Cr. units, with commencement scheduled for 01-Jan’26. The report describes Steriport as a high value added segment that could help sustain and potentially improve margins.
- Planned SVP expansion: Capacity is planned to increase from 20.91 Cr. units to 31.69 Cr. units, with commencement scheduled for 01-Jan’27.
- Promoter experience and distribution: Promoter and MD Mr. Bhavesh Patel has over three decades of pharmaceutical business experience. The company has a network of ~320 distributors and stockists across India.
- Product and geographic reach: Its portfolio includes 47 products registered across 120 international jurisdictions. FY25 domestic-to-export sales mix was 67 : 33; the USA contributed 0.04% of FY25 sales.
Amanta Healthcare Key Financials
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (excl. other inc.) | 259 | 280 | 275 |
| Growth Rate Y-o-Y % | 14.9% | 8.2% | (2.0%) |
| EBITDA (excl. other inc.) | 52.7 | 57.5 | 59.7 |
| EBITDA % (excl. other inc.) | 20.4% | 20.5% | 21.7% |
| PAT | (2.1) | 3.6 | 10.5 |
| PAT % | (0.8%) | 1.3% | 3.8% |
| Debt (Short+Long+Lease) | 225 | 211 | 204 |
| Debt/Equity | 3.57x | 3.18x | 2.12x |
| ROE % | (3.3%) | 5.3% | 12.4% |
| ROCE % (excl. short term debt) | 12.2% | 12.8% | 13.7% |
Revenue declined in FY25 while EBITDA and PAT increased. Debt/Equity also decreased over the three reported years.
IPO Valuation and Our View
The issue is valued at a P/E ratio of 46.6x based on FY25 PAT. The report weighs the promoter’s experience, established market position, distributor network, planned capacity expansion and product diversity against high debt, intense competition and packaging-material price volatility. Our recommendation is May Subscribe.
- INR 120 to 126 per share
- IPO price band
- May Subscribe
- Recommendation
Shareholding
| Particulars | Pre-Issue | Post-Issue |
|---|---|---|
| Promoter & Promoter Group | 85.60% | 63.56% |
| Public | 14.40% | 36.44% |
| Total | 100.00% | 100.00% |
Key Risks
- Execution of expansion plans: Future sales growth is pegged to proposed capacity expansion. A delay in starting operations could offset revenue growth; existing capacity utilization was 87%, 91% and 96% for FY23, FY24 and FY25, respectively.
- Debt: FY25 Debt/Equity of 2.12x remains a key monitorable, although it was lower than 3.57x in FY23 and 3.18x in FY24.
- Costs and foreign exchange: Operating margins are susceptible to volatility in imported LDPE and PP packaging materials linked to crude oil prices. Export sales contributing ~33% of total sales expose the company to foreign exchange fluctuations.
- Other overhangs: Contingent liabilities are ~INR 11.6 Cr. A litigation proceeding regarding sterility failure of a product, filed in 2013/2014, remains an overhang.
Our View
Amanta Healthcare’s planned capacity additions, established distribution network and diversified product profile support the IPO case. High leverage, competition and sensitivity to packaging-material prices remain important counterweights. The recommendation is May Subscribe.
Standard disclosures
- Research Analyst has served as an officer, director or employee of subject company(ies): No
- We or our associates have received compensation from the subject company(ies) in the past 12 months: No
- We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past12 months: No
- We or our associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company(ies) in the past 12 months –No
- We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report –No
- We or our associates or Research Analyst or his/her relative's financial interest in the subject company(ies)- No
- Nature of financial interest in subject company, if any –Nil
- We, our associates or Research Analyst have actual/beneficial ownership of 1% or more securities of the subject company (ies) at the end of the month immediately preceding the date of publication of Research Report – No
- Subject company (ies) may have been client during twelve months preceding the date of distribution of the research report-No.
- We or our Associates or Research Analyst are engaged in market making of subject company – No
- By referring to any particular sector, Minerva Capital Research Solutions does not provide any promise or assurance of favorable view for a particular industry or sector or business group in any manner. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and take professional advice before investing. Such representations are not indicative of future results.
- There are either no material conflict of interests or all existing and potential conflict of interest are disclosed herein.
Regulatory disclosures
Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).
Registration granted by SEBI and certification from NISM in no way promise or guarantee that the research recommendation will provide any assured, minimum or risk-free return to the investors.
The research report serves as general information and does not account for individual investment goals, financial situations, or needs. Minerva Capital Research Solutions strives to provide reliable and comprehensive information, sourced from what are believed to be trustworthy channels. However, this information has not been independently verified by Minerva Capital Research Solutions or its analysts, and no guarantees are made regarding its accuracy or completeness. The opinions expressed in this report reflect the views of the research analyst at the time of publication and may change over time. Minerva Capital Research Solutions and its affiliates as on date of publication of this report may or may not hold any positions in the securities discussed. The views presented are general and do not consider individual risk tolerance or investment objectives; therefore, readers should seek independent professional advice before making investment decisions. Minerva Capital Research Solutions does not guarantee a favorable outlook for any specific industry or sector and urges investors to consider all relevant risk factors, including their financial circumstances, before investing. The analyst certifies that their views accurately represent their personal opinions on the companies discussed and that no part of their compensation is tied to specific recommendations made in this report. This material should not be interpreted as an offer or solicitation to buy or sell securities in jurisdictions where such offers would be illegal. Consequently, brokerage and investment services described herein are not available to Canadian or U.S. persons. Distribution outside India requires prior written consent. This Research Report assumes that the recipient will assume all risks associated with its contents. If there are any disagreements or dissatisfaction with this report or its disclaimer, the only recourse is to cease using it. Minerva Capital Research Solutions and its affiliates will not be liable for any direct or indirect losses resulting from the use of this report. Recipients are required to adhere to these restrictions. The material is for the personal use of authorized individuals and does not constitute a solicitation or offer to buy or sell any securities in jurisdictions where such actions would be illegal.
For any queries or grievances: Mr. Nishant Gupta | Email: nishant.gupta@mcapital.in | Contact Number: 8171433387 | Website: www.mcapital.in | Twitter: @Mcapital_In
Rating rationale
Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.
- Buy: > 15%
- Hold: -5% to 15%
- Reduce: -15% to -5%
- Sell: <-15%