Business Profile of Veeda Clinical Research Ltd
Veeda Clinical Research was established in 2004 and is based in Ahmedabad. The company deals in providing early clinical development of drug solutions for pre-clinical to post-clinical stage trials and leading an independent full-service contract research organization. The services which are offered by the company include regularity affairs, pharmacovigilance, bio-availability and bio-equivalence, pre-clinical research development and bio- analytics service, etc. The company has a specialization in biology and pharmaceutical solutions.
Veeda Clinical Research Ltd IPO Objective
As per the draft red hearing prospects, the IPO issue consists of fresh issue and offer for sale. The fresh issue consists of XXXX shares at the face value of ₨ 2 each aggregating up to 1,850.00 million and OFS up to 13,008,128 Equity Shares at the face value of ₨ 2 each aggregating up to XXXX and main objective of company for listing is to Capital expenditure for procurement of equipment and machinery for company and also investment in our Material Subsidiary for repayment of borrowing & in equipment and machinery. Company use capital in marketing and promotional activities and general corporate expenses.
IPO Details of Veeda Clinical Research Ltd
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹2 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to ₹ XXXX million | |
| Fresh Issue | Up to XXXX Equity Shares |
| Aggregating up to ₹1,850.00 million | |
| Offer For Sale | Up to 13,008,128 Equity Shares |
| Aggregating up to ₹ XXXX million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Issue Price & Size: Veeda Clinical Research Ltd IPO
The issue price of Veeda Clinical Research Limited hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has an offer for sale of 13,008,128 equity shares at the price of ₨XXXX and fresh issue of XXXX equity shares aggregating up to ₹1,850.00 million.
Launch Date of Veeda Clinical Research Ltd
The IPO opening date of Veeda Clinical Research hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Veeda Clinical Research Ltd Financial Statements
| Sr. No. |
Particulars (In million ₨) | Sept 30 , 2024 | Sept 30 , 2023 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 |
| I | Revenue from operations | 3,052.99 | 1,806.56 | 3,887.77 | 4,095.78 | 2,880.26 |
| II | Other income | 105.66 | 93.88 | 192.13 | 106.32 | 50.83 |
| III | Total income ( I + II ) | 3,158.65 | 1,900.44 | 4,079.90 | 4,202.10 | 2,931.09 |
| IV | Expenses | |||||
| Cost of consumables and supplies consumed | 197.63 | 174.35 | 381.99 | 329.87 | 282.60 | |
| Employee benefits expense | 1,100.59 | 614.58 | 1.264.40 | 1,091.82 | 872.73 | |
| Finance costs | 281.71 | 73.84 | 145.95 | 138.82 | 96.29 | |
| Depreciation and amortization expense | 740.40 | 235.44 | 533.57 | 380.25 | 254.06 | |
| Clinical and analytical research expenses | 496.36 | 312.38 | 739.32 | 939.25 | 608.28 | |
| Other expenses | 598.46 | 392.25 | 982.08 | 700.62 | 502.39 | |
| Total expenses ( IV ) | 3,415.15 | 1,802.84 | 4,047.31 | 3,580.63 | 2,616.35 | |
| V | Restated profit / ( loss ) before joint venture | ( 256.50 ) | 97.60 | 32.59 | 621.47 | 314.74 |
| VI | Share of profit / ( loss ) from joint venture | - | - | - | ( 26.67 ) | 3.44 |
| VII | Exceptional items ( VII ) | - | - | - | - | 341.17 |
| VIII | Restated profit / ( loss ) before tax ( V + VI + VII ) | ( 256.50 ) | 97.60 | 32.59 | 594.80 | 659.35 |
| IX | Tax expense | |||||
| ( 1 ) Current tax | 92.74 | 3.89 | 97.98 | 192.79 | 94.24 | |
| ( 2 ) Deferred tax charge / ( credit ) | ( 88.63 ) | 27.60 | ( 53.62 ) | ( 19.29 ) | 60.53 | |
| ( 3 ) Adjustment of tax relating to earlier years / periods | ( 11.29 ) | 2.54 | ( 8.19 ) | ( 2.93 ) | - | |
| Total tax expense / ( credit ) ( IX ) | ( 7.18 ) | 34.03 | 36.17 | 170.57 | 154.77 | |
| X | Restated profit / ( loss ) for the year / period ( VIII - IX ) | ( 249.32 ) | 63.57 | ( 3.58 ) | 424.23 | 504.58 |
| Particulars | Sept 30,2024 | Sept 30,2023 | Mar31,2024 | Mar 31,2023 | Mar31,2022 |
| EBITDA (A)(million) | 765.61 | 406.88 | 712.11 | 1113.87 | 1009.7 |
| Revenue from Operations (B)(million) | 3,052.99 | 1,806.56 | 3,887.77 | 4,095.78 | 2,880.26 |
| EBITDA Margin (%)(A/B) | 25.08 % | 22.52 % | 18.32 % | 27.20 % | 35.06 % |
| Return on Net Worth (%) | ( 2.13 ) % | 1.06 % | ( 0.02 ) % | 7.10 % | 9.55 % |
| Net Asset Value per Equity Share | 189.29 | 126.53 | 189.04 | 106.80 | 95.14 |
| Earnings/(loss) per equity share (basic) | ( 3.96 ) | 1.38 | ( 0.04 ) | 7.58 | 10.26 |
| Earnings / ( loss ) per equity share (diluted) | ( 3.96 ) | 1.38 | ( 0.04 ) | 7.57 | 10.24 |
| Debt to equity ratio | 0.45 | 0.2 | 0.32 | 0.25 | 0.23 |
Veeda Clinical Research Ltd IPO Promoters & Shareholding
As of date, there is only one promoters of the company. The promoter along with promoter group in aggregate collectively holds 91.3% of the paid-up share capital of company.
| Pre-Offer | Post-Offer | |||
| Name of Shareholder | No. of Shares | Shareholding (%) | No. of Shares | Shareholding (%) |
| Promotors | ||||
| Basil Private Limited | 22,251,712 | 33.36 | [●] | [●] |
| Total (A) | 22,251,712 | 33.36 | [●] | [●] |
| Promotors Group | ||||
| Bondway Investments Inc. | 12,630,580 | 18.93 | [●] | [●] |
| Sabre Partners AIF Trust | 2,760,840 | 4.14 | [●] | [●] |
| Sunil Kant Munjal | 2,723,164 | 4.08 | [●] | [●] |
| Georgios Kouvatseas | 2,136,653 | 3.20 | [●] | [●] |
| Leonidas Kostagiolas | 2,136,653 | 3.20 | [●] | [●] |
| Okeanos Limited | 2,136,653 | 3.20 | [●] | [●] |
| Arabelle Financial Services Ltd. | 2,087,700 | 3.13 | [●] | [●] |
| Dr. S N Vinaya Babu | 1,325,914 | 1.99 | [●] | [●] |
| Sixth Sense India Opportunities - III | 1,566,574 | 2.35 | [●] | [●] |
| ValueQuest SCALE Fund | 1,361,582 | 2.04 | [●] | [●] |
| Dalmia Bharat Refractories Limited | 1,361,582 | 2.04 | [●] | [●] |
| CX Alternative Investment Fund | 1,266,078 | 1.90 | [●] | [●] |
| Qrg Investments And Holdings Limited | 1,012,573 | 1.52 | [●] | [●] |
| India Acorn Fund Ltd | 953,107 | 1.43 | [●] | [●] |
| Ananta Capital Venture Fund - 1 | 819,673 | 1.23 | [●] | [●] |
| Singularity Growth Opportunities Fund - 1 | 816,949 | 1.22 | [●] | [●] |
| Dinesh Mody Ventures LLP | 701,880 | 1.05 | [●] | [●] |
| Ashoka India Equity Investment Trust Ple | 680,790 | 1.02 | [●] | [●] |
| Total (B) | 38478945 | 57.67 | [●] | [●] |
| Total (A+B) | 60,730,657 | 91.03 | [●] | [●] |
Should You Subscribe to Veeda Clinical Research Ltd. IPO or Not
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Veeda Clinical Research Ltd:
Successful acquisition
Company makes strong presence in CRO market by following disciplined and strategic approach to acquisitions of other companies which help in making dominance in industry. Veeda ltd. focused on time to time evaluates options for strategic acquisition which open opportunity for compliment business geographic presence and deeming scientific capabilities to various therapeutic areas. The past acquisition by company includes Bio Need India Private Ltd. and Health Data Specialist Ltd.
Developing Biopharm service
The recently change in biologics industry makes it more versatile and it shift towards in bi-specific, antibodies, gene and cell therapy from its previous work focused in antibody and recombinant protein etc. These changes increased the cost and fall the success rate which leads to higher outsourcing to CROs and in biology based capabilities. The company is continuously working to develop these Biopharma capabilities to enhance service quality.
Strongly stand in HVS
The main strength of company is HVS (Healthy Voluntary Studies) and company have effective experience, capabilities and previous regulatory track record gives company a competitive advantage. The company developed over the years a position in CROs segment in country. In last three financial years HVS remained a main source of income for company as 50% of total income come from this unit and company continue to maintain focus on HVS which will give competitive advantage in future.
World class research infrastructure
Company have strong infrastructure in research which improve the efficiency of final products in regulatory tests. Veeda ltd. has four facilities in ahemdabd and one in mehsana situated in Gujarat. Every facilities of company also contain internal archival areas which enhance quality of company research. Veeda research installed more than 50 bioanalytical equipment in each facilities of companies and all experiments rooms in different location is made according as per international standards.
Risk Factors of Veeda Clinical Research Ltd IPO
Customer Concentration
Company derive major part of his revenue from hi top 5-10 client which is 41.6% of revenue. This undiversified source of income creates a risk for company in future operations and growth. Any loss in these clients comes down profit margin lower and this also arise a risk for company if new rival enters in market which providing better services at competitive prices. In this company is also not assuring for his clients decisions.
Regulatory Involvement
Veeda Ltd. required performing work according with contractual needs, regulatory standard is follow in jurisdictions and ethical considerations. In case if company action is not align with authority guidelines like Food and Drug administration or medical agencies. It will negatively impact company ability to deliver service to clients and adversely impact business operations. Majorly company contract with biopharmaceutical companies to provide wide range of service in bringing new drugs in market.
Competitive market
Industry in which company operates is highly competitive and company inability to compete may affect negatively company business, cash flows and financial conditions. Higher competition in industry Pressure Company to lower down price of their services and products which may affect company profit margins. The growth and success of company majorly depend on final products made by company and outcomes of clinical trial and efficacy of products is not under control of company.
Foreign currency risk
Company is exposed to risk of foreign currency exchange rate fluctuations because company have huge outstanding amount of ₨ 541.18million, ₨565.94 million, ₨84.75 million, and ₨651.89 million at 30 September 2024 and outstanding amount company transact in various currencies like U.S. dollars, EURO etc. In future any change in rate of currency makes company profits lower and affects future working capital requirements.
Veeda Clinical Research Ltd Grey Market premium
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the Veeda Clinical Research Limited is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
