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Macleods Pharma IPO Details: Launch Date, Issue Price, Size, GMP & Review

Macleods-Pharmaceuticals-IPO

Macleods Pharmaceuticals IPO – About the Company

Established in 1989, Macleods Pharmaceuticals Limited is one the seventh-largest drug pharma company by revenue in India. Macleods Pharmais involved in developing, manufacturing and marketing a wide range of pharmaceutical products.

The major products of Macleods Pharma include medicines for therapeutic treatments like cardiovascular, anti-diabetic, dermatology, hormone treatment anti-infectives etc. With 65 registrations globally, its many brands has the highest number of WHO prequalified products contributing major source of revenue from across the segments.

Around 51.73% of its total revenue comes from branded generics as of FY21 making it 2nd largest pharma company in the covered market. As per the WHO product registrations as of December 31, 2021, out of 65 pre-qualified WHO-approved products, 32 are anti-TB products making Macleods Pharma one of the well-known companies in India.

Macleods Pharma IPO Objectives

As no fresh equity shares will be issued by the company, the entire IPO is offer-for-sale by the promoters group. The Offer-for-Sale will consist of around 60,482,040 Equity Shares by the selling shareholders mainly the promoters group.

Also Read: What is IPO: How it Works & Everything Else You Need To know

The main motive of Macleods Pharma IPO is to give an opportunity to shareholders divest some part of their stake to monetize their investment in the company and make the equity shares publicly available for the investors and for trading in the market. However, the fund will be also used to increase the brand visibility and image of the company.

Also Read: What is Equity Share: Types, Importance &How it is Calculated

Macleods Pharma IPO Details:

IPO Open Date To be Updated
IPO Close Date To be Updated
Listing Date To be Updated
Face Value Rs 10 per share
Price To be Updated
Lot Size To be Updated
Issue Size Rs 5,000
Offer For Sale 60,482,040 Equity  Shares, aggregating up to Rs 5000 crore
Fresh Issue No Fresh Issue
Issue Type Book Built Issue IPO
Listing At BSE & NSE
QIB Shares Offered Not more than 50% of the Offer
NII (HNI) Shares Offered Not less than 15% of the Offer
Retail Shares Offered Not less than 35% of the Offer

 

Macleods Pharma IPO Issue Price & Size

The issue price of Macleods Pharma IPO will be in the range of Rs XXXX to Rs XXXX. As per the DRHP the size of the issue Macleods Pharma IPO is Rs 5000 crore comprised entirely of an offer for sale comprising 60.5 million equity shares by promoters.

Also Read: What is DRHP in IPO: How to Read & Difference between DRHP and RHP

Macleods Pharma IPO Launch Date

The launch date of Macleods Pharma IPO is not known yet, as the official date of IPO is not declared by the company. As soon as the Macleods Pharma IPO launch date is declared, all the details of the IPO, including the launch date, issue size and price will be updated.

Macleods Pharma IPO Financial Statements:

Particulars (Rs in Million) FY22 (6M) FY21 FY22 FY19 CAGR
Revenue from Operations 40801.55 71,994.16 69028.16 58704.35 10.74%
Other Income 135.46 5500.68 3596.17 4424.63
Operational Expenses 24019.93 36517.38 36576.00 32350.37
Other expenses 9082.75 14510.18 16065.54 14314.03
EBITDA 7834.3 26467.3 19982.79 16464.58 26.79%
EBITDA Margin% 19.20% 36.76% 28.95% 28.05%
Depreciation 798.23 1344.00 1304.21 1229.36
Interest 31.64 63.02 77.60 56.41
PBT 7004.46 25060.26 18600.98 15178.81  
Total tax 631.54 4832.78 2876.83 944.22
PAT 6372.92 20227.48 15724.15 14234.59 19.21%
PAT Margin% 15.62% 28.10% 22.78% 24.25%  
EPS (Rs) 10.56 33.74 26.18 23.72 19.27%

Source: DRHP

Macleods Pharma IPO Financial Performance

The revenue of Macleods Pharma has grown at a CAGR of 10.74% from Rs 5870 crore to Rs 7199 crore in FY21. While, due to better operating margins the EBITDA of the company has grown at CAGR of 26.8% from Rs 1646 crore in FY19 to Rs 2647 crore in FY21. In the first six months of FY23 company has already earned revenue of Rs 4080 crore, EBIDTA of Rs 783 crore and Net Profit of Rs 217.17 crore showing an encouraging growth from FY21.

The EBITDA Margins of the company improved from 28% in FY19 to 36.76% in FY21. The Net Profit of the company rose at a CAGR of 19.21% from Rs 1423.5 crore in FY19 to Rs 2027 crore in FY21. The Net Profit margin of the company stood at 28.10% in FY21 from 24.25%% in FY19. The Earnings Per Equity Share of the company stood at Rs 33.74 crore in FY21.

Macleods Pharma IPO Promoters & Shareholding of the Company

Girdharilal Bawri, Banwarilal Bawri, and Dr Rajendra Agarwal are the promoters of Macleods Pharmaceuticals combined holding a 34% stake in the company.

While, other members of the promoters group like Prateek Agarwal, Ajay Agarwal and Vijay Agarwal are holding more than 10% stakes in the company. And remaining seven members of the promoter's group are holding the remaining stakes in the company.

S. No. Name of the Shareholders No. of Shares % of pre-Offer Shareholding
1 GirdharilalBawri 63,070,800 10.53%
2 BanwarilalBawri 88,667,400 14.81%
3 Dr. Rajendra Agarwal 52,281,300 8.73%
  Sub Total (A) 204,019,500 34.07%
Promoters Group (Selling Shareholders)
1 Prateek Agarwal 75,552,000 12.62%
2 Ajay Agarwal 65,176,500 10.88%
3 Vijay Agarwal 62,508,300 10.44%
4 Anju Agarwal 48,843,000 8.16%
5 Gauri Agarwal 48,447,000 8.09%
6 Dr. Ruchi Agarwal 48,035,700 8.02%
7 SudhaBawri 26,522,400 4.43%
8 ShaliniKedia 7,980,000 1.33%
9 Anushree Agarwal 6,876,000 1.15%
10 TaradeviBawri 4,860,000 0.81%
  Sub Total (B) 394,800,900 65.93%
 
  Total (A+B) 598,820,400 100.00%

Source: DRHP

Why Invest in Macleods Pharma IPO?

Investing in any company including Macleods Pharma IPO you must have positive reasons that can encourage you to put your hard-earned money in such companies. While investing in the companies listed or going to be listed in the stock market, you have to consider various points.

Also Read: What to Know Before Investing in Stocks: 10 Things to Consider

These factors helps to know the strength and weakness or risk that a company might face while operating its normal course of business. Based on these factors you can decide whether to invest or not invest in the Macleods Pharma IPO. Just find the points below.

Strengths:

  • The demand for medicines and other healing-related products made by pharmaceutical companies is very high not only in the domestic but also in the international markets. Macleods Pharma one the seventh largest companies by revenue in India is going to get the advantage of the increase in medicines like anti-diabetics, cardiovascular, derma, respiratory and hormone therapies.
  • The brand company has a strong R&D facility capable of producing and launching innovative products with an in-house packaging material unit with the capacity to check the quality and maintain quality control across the various stages of production.
  • In the last three years company has launched new brands like Vildamac and Vildamac M, in the anti-diabetic market helped it to gain the market share in domestic sales among non-innovator brands in the IPM (Vildamac comprised 7.3% of the Vildagliptin market, and Vildamac M comprised a market share of 8.6% of the Vildagliptin+Metformin market).
  • At the sales front, in medicines segment-wise, Sales from anti-diabetics, cardiovascular, derma, respiratory and hormones therapies grew at a CAGR of 28.5%, 13.4%, 11.7%, 11.0%, and 10.4%, respectively, that is higher than the IPM growth of 12.3%, 11.1%, 10.8%, 6.2% and 6.9%, for the same therapies in the same periods.
  • The company is earning its revenue from a wide-spread global market with a presence in 170 countries making the company a well-diversified revenue group company with the scope to expand its operations further in the international markets.
  • At the financial end company has shown significant growth in the last three years. The revenue of the company grew at a CAGR of 10.75% from FY19 to FY21, while thanks to better operating and net margins, the EBITDA and PAT grew at CAGR of 26.8% and 19.20% respectively during the same period.
  • Macleods Pharma is a cash-rich, zero-debt company having a solid domestic business. The return on capital employed (ROCE) in the company has improved from 58.68% to 66.05%, while the return on Net worth of the company stood at 53.3%.

 

Risks:

  • The pharma sector not only in India but also in the overseas market globally a highly regulated industry. Any kind of unfavourable norms or restrictions by the regulatory bodies or the central governments can affect the sales of the medicines and related products manufactured by such companies too.
  • Its many brands are dependent on third-party manufacturers, hence any kind of delay in the supply of the products or disruptions in manufacturing units can affect the business growth of the company.
  • While on the other hand, on the supply side, any kind of shortfall of raw materials or an increase in price, may affect the business of the company.
  • At the R&D centres any kind of complaint or failure to meet the quality standards and manufacturing practices as per the regulatory authorities may also cost the company in terms of increased liabilities due to product recalls, fines or regulatory sanctions?

 

Also Read: What are the Risk Factors Involved in Applying for an IPO

Macleods Pharma IPO Grey Market Premium

The IPO Grey Market Premium (GMP) of Macleods Pharma IPO is around Rs XXXX. GMP is the price of the stock in the grey market of an unlisted company in the pre-listing market. It is the price of the stock with a premium over the price issued in the IPO.

Also Read: What is Grey Market Premium in IPO: How is GMP Calculated &Reliable

Though GMP is not a reliable mark to know the listing price and it is also not necessary to stock every company list at a premium, few companies list at a discounted price as per their valuation. The GMP of any unlisted company keeps fluctuating till the date of listing, as per the demand and supply of the equity shares in the market.

Macleods Pharma IPO Review & Analysis

From the industry and company’s fundamentals point of view, Macleods Pharma is a good company to invest in with a track record of strong management and good financial growth. But the question right here is what price the shares of Macleods Pharma will be issued in the primary market. And until the IPO price is not known, it would be difficult to find the stock valuation.

Also Read: Why is Fundamental Analysis Important for Investing in Stocks

Without knowing the share price of the company, it is not possible to evaluate the stock price and compare the same with other listed peer groups of companies operating in the same industry. And without comparing with other companies how we can recommend whether to subscribe or not to subscribe in the Macleods Pharma IPO or you should buy or not to buy the shares of this company for trading or investing from the secondary markets?

Also Read: Difference Between Trading and Investing in Stock Market

However, if the Macleods Pharma IPO comes with the share prices issued at a discounted price compared to other listed group companies, then you can apply for the Macleods Pharma IPO. On the other hand, if Macleods Pharma IPO is issued at a premium price, or you can say the valuation of Macleods Pharma is more expensive than its peer group, then either you can avoid applying in the Macleods Pharma IPO or invest with the long-term perspective.

Also Read: Why You Should Invest in the Stock Market: Reasons & Benefits

How to Apply for Macleods Pharma IPO?

If you want to apply for the Macleods Pharma IPO, you must have a trading account and a demat account with a SEBI registered broker. If you don't have any of them or both of them, you can apply to open a trading and demat account with Moneysukh.

Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe

Moneysukh is one the best discount broker in India offering one of the best trading platform for trading or investing in equity, commodity and currency markets. You can open both these accounts here and easily apply for the IPO by following the steps given below.

Also Read: How to Choose the Best Trading Platform in India: Points to Check

Steps to Apply for Macleods Pharma IPO:

Step 1: As soon as Macleods Pharma IPO opens for online bidding you can apply.

Step 2:Nowopen trade.moneysukh.com and log in with your User ID & password.

Step 3: Here you have to go into the IPO section and choose the Macleods Pharma IPO.

Step 4: Now just fill in the required details like price, quantity, and so on.

Note: At the time of applying for any IPO, always bid at the cutoff price before submitting your application. 

Step 5:Now finally before submitting your application make the payment and submit.

How to Check Macleods Pharma IPO Allotment Status?

The IPO allotment process starts after a few days of bidding ends. And if you have applied for the Macleods Pharma IPO you can easily check the allotment status using your PAN or application details on BSE, NSE and through the website of the Moneysukh.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

The share allotment procedure in the IPO is one of the critical processes as many times due to the high demand of shares of the company the IPO is oversubscribed. And if an IPO is oversubscribed many times in all categories including the retail category, then your chances of getting the allotment of shares becomes very less including the Macleods Pharma IPO.

Also Read: How to Increase the Chances of IPO Allotment

Here you can apply for IPO in the HNI category, and then have better chances of allotment of shares to investors due to the high amount of limited applications in this category.

Also Read: How to Apply for IPO in HNI Category: Benefits & Procedure

If you have not been allotted any share during the Macleods Pharma IPO allotment, then your application money will be refunded into your bank account or the fund will be unblocked if applied through ASBA.

However, if you get the allotment of shares in the IPO, you will get the shares allocated into your demat account before the day of listing that you can sell any time after listing in the secondary markets. But while buying and selling the stocks or listed companies always identify the trend in the stock market, which helps to create a profitable long or short position.

Also Read: How to Identify Trend in Stock Market: 10 Points to Find Trend

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