Survival Technologies – About the Company
Survival Technologies Limited is a leading Indian speciality chemical manufacturer specializes in contract research and manufacturing services (CRAMS) for heterocyclic and fluoro organic products. The company is engaged in the supply of specialty chemicals with multiple applications and many products it sells domestically are import substitutes that were formerly imported from China. The company is one of the few specialty chemical manufacturers in India manufacturing select products from the heterocyclic and fluoro organic product groups for sale in India and globally. Survival Technologies Limited engages with customers across their product lifecycles, i.e., providing extensive in-house research for the development of products, commercial scale process development, and manufacture of commercial quantities of products. Between April 1, 2007, and March 31, 2022, the company synthesized 677 products of which over 500 products have been commercially produced and sold to various customers across the export markets.
Survival Technologies IPO Objectives
The IPO issue consists of both; fresh issue and offer for sale.
- All the money raised through offer for sale will go to selling shareholder / selling promoter and nothing from that will be entitled to the company. The offer for sale by selling shareholder consists of Rs. 800 crores.
- The company as per prospectus, wish to direct Rs. 175 crores out of total Rs. 200 crores fresh issue for working capital requirement. Rest of the fund will be used for general corporate purposes.
Survival Technologies IPO Details:
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | Rs 2 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to [●] Equity Shares |
| aggregating up to ₹ [●] million | |
| Fresh Issue | Up to [●] Equity Shares |
| Aggregating up to ₹2,000.00 million | |
| Offer For Sale | Up to 6,526,983 Equity Shares |
| Aggregating up to ₹8,000.00 million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Survival Technologies IPO Issue Price & Size
The RHP of Survival Technologies hasn’t been filed yet, so the important price range are unknown. As soon as the information is announced, same will be updated and the investors can bid between those price range on respective dates. The IPO has fresh issue of up to Rs. 200 crores and an OFS of Up to [●] Equity Shares aggregating up to 800 crores.
Survival Technologies IPO Launch Date
Launch date of Survival Technologies hasn’t been made public; as soon as the dates are made public same will be updated. Other useful dates like closing date, allotment date, listing date will also be updated.
Survival Technologies Financial Statements:
| Particulars | For the 3 months period
ended June 30, 2022 |
FY22 | FY21 | FY20 |
| Revenue from Operations | 1000.2 | 317.82 | 2747.9 | 1991.46 |
| Other Income | 34.86 | 98.91 | 95.65 | 10.49 |
| Total Income | 1035.06 | 3216.73 | 2843.6 | 2001.95 |
| Expenses | ||||
| Cost of Materials Consumed | 437.22 | 1582.49 | 1545.8 | 1202.44 |
| Purchase of Traded Goods | 11.6 | - | - | - |
| Changes in inventories of finished goods
and work-in- progress |
3.55 | -79.63 | 13.2 | -42.26 |
| Employee Benefits Expense | 40.02 | 234.33 | 169.44 | 146.4 |
| Finance Costs | 1.82 | 5.41 | 9.96 | 23.38 |
| Depreciation and Amortisation Expense | 13.51 | 42.07 | 37.12 | 42.16 |
| Other Expenses | 159.16 | 461.61 | 322.99 | 335.82 |
| Total Expenses | 686.88 | 2246.28 | 2098.5 | 1707.95 |
| Profit for the period/year | 24879 | 734.62 | 563.2 | 190.54 |
| Particulars | For the 3 months period
ended June 30, 2022 |
FY22 | FY21 | FY20 |
| Revenue from Operations | 1000.2 | 3117.82 | 2747.9 | 1991.46 |
| Growth in Revenue from Operations (%) | - | 13.46 | 37.98 | - |
| Gross Profit | 547.83 | 1614.96 | 1188.9 | 831.28 |
| Gross Margin (%) | 54.77 | 51.8 | 43.27 | 41.74 |
| EBITDA | 328.65 | 919.02 | 696.5 | 349.05 |
| EBITDA Margin (%) | 32.86 | 29.48 | 25.35 | 17.53 |
| Profit After Tax | 248.79 | 734.62 | 563.2 | 190.54 |
| PAT Margin (%) | 24.87 | 23.56 | 20.5 | 9.57 |
| RoE (%) | 9.94 | 32.6 | 36.95 | 19.79 |
| RoCE (%) | 13.76 | 42.5 | 49 | 32.18 |
| Net Fixed Asset Turnover | 2.51 | 8.23 | 8.89 | 6.38 |
| Net Working Capital Day Comparison of
financial KPIs of Company and listed peers |
173.03 | 198.53 | 145.1 | 98.48 |
| Operating Cash Flows | 65.32 | 174.67 | 503.38 | 80.21 |
Survival Technologies IPO Promoters & Shareholders
There are two promoters of Survival Technologies
- Vijaykumar Raghunandan prasad Agrawal, (Chairman and Whole-time Director)
- Nimai Vijay Agrawal (MD and Chief Executive Officer)
| Name of the Shareholder | No. of Shares | % of pre-Offer shareholding | Aggregate amount of OFS
(in ₹ million) |
| Vijaykumar Raghunandan prasad Agrawal | 5,86,29,750 | 67.98% | 5,444.14 |
| Nimai Vijay Agrawal | 2,28,75,000 | 26.52% | 2,124.08 |
| Prabha Vijay Agarwal | 46,50,000 | 5.39% | 431.78 |
Why Invest in Survival Technologies IPO?
While investing in an IPO-bound company, one should check their strength and weaknesses that help an investor to visions company’s prospects. Fundamental analysis apart from financial and competitive strength, also help you to know the risk factors that can affect the business operations and future prospects of the company. After evaluating the variables such strength weakness, financials, you may strike a balance and decide to invest or not invest in an IPO.
Strengths
- Survival Technologies is a leading Indian chemical manufacturer that focuses on CRAMS (Chemical, Aromatic, and Synthetic) products. The products have various uses across industries like agrochemicals, pharmaceuticals, biotech, paints, and polymers.
- They're developing six new products and have two in-house laboratories. Their R&D team works independently based on customer requirements, synthesizing chemicals to determine viability. Their technical know-how and market-leading position offer cost efficiency, economies of scale, repeating customers and long-term relationships.
- The company's business model focuses on diversification across industries. The company's business is diversified across its revenue stream and its product exports. The table below provides contribution of top products to revenue from operations in years’ mentioned.
| Particulars | For the 3 months period
ended June 30, 2022 |
FY22 | FY21 | FY20 |
| Revenue split between domestic and exports | ||||
| Domestic Market (%) | 64.58 | 68.31 | 67.99 | 67.72 |
| Export Market (%) | 35.42 | 31.69 | 32.01 | 30.28 |
Contribution to Revenue from Operations of Product Categ. |
||||
| Top 3 (%) | 29.28 | 18.47 | 19.08 | 16.4 |
| Top 5 (%) | 41.24 | 27.28 | 28.36 | 24.5 |
| Top 10 (%) | 56.84 | 42.96 | 44.12 | 39.72 |
- The company offers its services in specialty chemical manufacturing, particularly in niche product groups. Offering a dedicated product offend faces high entry barriers due to technical knowhow, expertise in handling complex chemistries, and other technical processes. The handling of corrosive raw materials and intermediates requires significant training for employees, creating additional barriers for new players. Changes in suppliers may require significant time and expense for customers, making them less inclined to pursue alternative supply sources. This provides an advantage over new entrants who would need significant investments and long gestation periods to compete effectively.
Risks:
- Customer acquisition is a challenge for the company. Since the company is engaged in specialized chemical manufacturing, bringing new clients leads to initial expenditure on R&D to satisfy customer product demand. Also, there are limited competitor, which makes it even harder for grabbing already established clients.
- The company is subject to strict quality checks, inspections and facility audits from clients. Any failure to comply with quality standards may adversely affect the business prospects, cash flows and financial performance, including cancellation of existing and future orders.
- The business relies on its three manufacturing facilities for production of its product. Any disruption in operations of these facility could significantly impact the business, financial condition and cash flows. In past the company have received closure notices from the Gujarat Pollution Control Board for units of Ankleshwar, Gujarat and Sarigam facility.
- The company currently relies on imported raw materials for a portion of its requirements. Below mentioned in the cost of total raw material and the raw material imported from China. The company is not currently subject to any regulatory restrictions on importing raw material from china or any other jurisdiction. However, the company may experience significant challenges if the international relations between India and China disrupts.
| Particular | Amount (₹ million) | FY20 | Amount (₹ million) | FY21 | Amount (₹ million) | FY22 | Amount (₹ million) | For the 3 months period
ended June 30, 2022 |
| Cost of Raw Material Imported | 718.29 | 57.90% | 1098.4 | 68.45% | 794.19 | 46.40% | 235.26 | 42.59% |
| Cost of Raw Material Imported from China | 616.45 | 49.68% | 939.61 | 58.55% | 417.74 | 39.25% | 230.84 | 41.79% |
How to Apply in Survival Technologies IPO?
To apply for the Survival Technologies IPO or invest in any listed company in India, you must have a demat account and trading account. Once you have both these accounts you can apply for IPOs in the primary market or buy shares directly from the secondary market through the trading platform provided by the discount brokers or full-service brokers to their clients.
Also Read: Choosing the right broker: Decoding the mystery of lowest brokerage charges
Here you can choose Moneysukh to open demat and trading account to apply for the IPO. You will get the best online trading platform to invest or trade in equities, commodities and the forex market or apply in the IPOs. To apply for this IPO through Moneysukh follow the steps given below.
Also Read: What are the Benefits of Demat Account: Advantages & Why you need it
Steps to Apply for Survival Technologies IPO:
Step 1: Once the IPO opens you can apply.
Step 2: Open trade.moneysukh.com and log in with your User ID & password.
Step 3: Now find the IPO section and select the Survival Technologies IPO.
Step 4: Here you have to fill in various 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 make the required payment and submit your IPO application.
Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe
How to Check the Allotment Status of Survival Technologies IPO?
The allotment of shares in the IPO is organized after a few days of closing of bidding. Once the allotment date arrives, you can check the allotment status through various online sources like NSE, and BSE and through the website of Moneysukh using your PAN or IPO application details.
Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh
The allotment of shares in the IPOs is highly dependent on the oversubscribe status of the IPOs. Hence, if it is oversubscribed many times, there are less chances of allotment to everyone.
Also Read: How Shares are Allotted in Oversubscribed IPO: Allocation Process
However, if you have been allotted any share in this IPO cit will be credited into your demat account on the date of listing that you can sell in the secondary market. And if there is no allotment of shares in this IPO, then your application money will be refunded into your bank account or the fund will be unblocked if you have applied through ASBA.
Also Read: How to Increase the Chances of IPO Allotment
