Chandra Bhagat IPO - Grey Market, GMP & Reviews

IPO Details

Issue Date 31/01 - 06/02
Issue Size ₹10.20 Cr
Issue Price ₹51
Market Lot 2000 Shares
Shares on Offer 2,000,000
Kostak N/A
Subject to Sauda N/A
Listing Date 14/02/2020
Listing Price N/A
Listing Gain% N/A

About Chandra Bhagat Pharma Ltd

Chandra Bhagat Pharma Ltd.(CBC) was established by Mr. Chandravadan C. Bhagat in 1944. An entrepreneur devoted to offering a specialty range of Life Saving Medicines to the Indian Market. He Began his career as a manufacturing chemist but his sense of personal mission drove him to start imports of critical lifesaving medicine from reputed global companies.

His network of contacts with Pharma companies worldwide became a valuable resource. He has supplied medicines to the Government of India during national calamities. For the assistance he rendered, he received much praise and appreciation from the government.

In 2003, CBC set up its marketing team with a wide portfolio of products. Antibiotics, Anti-neoplastics, Cardiovascular, Hormones and many more.

CBC products as a BRAND are very well accepted in the market and CBC enjoys an eminent place in the life saving medicine space.

CBC has a dedicated Marketing team of enthusiastic members, which strives as a team to make the story successful for the company.

CBC products are supplied to major Hospitals, Nursing homes, Institutions & also supplied to the Government.

Chandra Bhagat Pharma Ltd. (CBPL), popularly known as CBC Pharma is in the marketing of life-saving medicines like Antibiotics, Antineoplastic, Cardiovascular, Hormones etc. The company markets its products under own brand name. The product portfolio has a major focus in injections - IV (Intravenous) & IM (Intramuscular), dry syrup, tablets and capsules. The company is meeting the requirements of Hospitals, Healthcare Centers, Government departments, NGOs directly or through distributors' channel. It also exports its products in 15 countries. However, its domestic sales contribute 92%-93% of total revenue.

CBPL has established presence in major therapeutic categories for formulations such as Anti-cancer (Oncology), Antibiotics, Anesthesia, Hormones, Orthopedic, Cardiac, Cardiovascular, Anti-fungal, Antiviral, Pediatrics, Cardiology, Nephrology, Neurology etc. It is also engaged in promoting and marketing of Active Pharmaceuticals Ingredients (API's) in India.

Company Promoters

Mr. Hemant Chandravadan Bhagat and Mr. Pranav Hemant Bhagat are the promoters of the company.

Issue Details

To part finance its plans for working capital needs (Rs. 7.00 cr.), setting up of distribution and warehousing centers (Rs. 1.50 cr.) and general corpus fund needs (Rs.0.95 cr.), CBPL is coming out with a maiden IPO of 2000000 equity shares of Rs. 10 each at a fixed price of Rs. 51 per share to mobilize Rs. 10.20 cr. The issue opens for subscription on 31.01.20 and will close on 06.02.20. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. This issue is solely lead managed by Beeline Broking Ltd while Link Intime India Pvt. Ltd. is the registrar to the issue. Beeline Broking Ltd. is also the market maker for this issue. Post allotment, shares will be listed on BSE SME. The issue constitutes 26.51% of the post issue paid-up equity capital. The company is spending Rs. 0.75 cr. for this issue process.

Having issued initial equity at par, CBPL issued further equity shares in the price range of Rs. 40 to Rs. 210 between April 2003 and August 2019. It has also issued bonus shares in the ratio of 7 shares for every 1 share held in July 2019. The average cost of acquisition of shares by the promoters is Rs. 7.73 and Rs. 11.35 per share.

Post issue CBPL's current paid-up equity capital of Rs. 5.55 cr. will stand enhanced to Rs. 7.55 cr. The company is mulling market cap of Rs. 38.48 cr. with this issue.

Company Financials

For the last three fiscals, CBPL has posted turnover/net profits of Rs. 90.28 cr. / Rs. 0.66 cr. (FY17), Rs. 97.73 cr. / Rs. 1.04 cr. (FY18) and Rs. 106.72 cr. / Rs. 0.63 cr. (FY19). For the first four months ended on 31.07.19 of FY20, it has earned a net profit of Rs. 0.25 cr. on a turnover of Rs. 33.45 cr.

For the last three fiscals, CBPL has posted an average EPS of Rs. 1.94 and an average RoNW of 8.14%. The issue is priced at a P/BV of 2.02 on the basis of its NAV of Rs. 25.22 as on 31.07.19 and at a P/BV of 1.57 based on post issue NAV of Rs. 32.41.

While its top line has shown growth, its gross profit remains static and net profit marked inconsistency. According to management, this has been due to its spending on new product development, approval and clinic trials. It is now ready to launch HepA (Hepatitis A Vaccine) with the help of funds arising from the proposed IPO. It has up the sleeve launch of Inactivated Polio Vaccine (IPV), Pneumococcal Vaccine and Varicella Vaccine in the coming few years. Thus its future prospects appear bright.

If we annualize the latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 51+. Thus the issue is aggressively priced discounting near term positive factors.

Company Financials

Particulars 31-Mar-19 31-Mar-18 31-Mar-17
Total Assets (In ₹ Millions) 8,285.52 5,805.76 5,589.60
Total Revenue (In ₹ Millions) 10,671.83 9,773.41 9,028.11
Profit After Tax (PAT) (In ₹ Millions) 62.59 103.38 66.03

Chandra Bhagat Pharma Ltd IPO Reviews

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Subscription Details

Date & Time QIB NII RII Total
Day 1 - 31 Jan 2020
Day 2 - 3 Feb 2020
Day 3 - 4 Feb 2020
Day 4 - 5 Feb 2020
Day 5 - 6 Feb 2020

Allotment Status

Please click the link below to check the IPO allotment status.

IPO Allotment Status

Chandra Bhagat Pharma Ltd IPO FAQs

  1. When will Chandra Bhagat Pharma Ltd IPO open?

    Chandra Bhagat Pharma Ltd IPO will open on 31/01 and close on 06/02.

  2. What is the listing date of Chandra Bhagat Pharma Ltd IPO?

    Chandra Bhagat Pharma Ltd IPO will list on 14/02/2020.

  3. What is the offer price of Chandra Bhagat Pharma Ltd IPO?

    The offer price of Chandra Bhagat Pharma Ltd IPO is ₹51.

  4. What is the lot size of Chandra Bhagat Pharma Ltd IPO?

    The lot size of Chandra Bhagat Pharma Ltd IPO is 2000.

  5. What is the Grey Market Premium (GMP) price of Chandra Bhagat Pharma Ltd IPO?

    The Grey Market Premium (GMP) price of Chandra Bhagat Pharma Ltd IPO is Not Available at the moment.

  6. What is the Kostak price of Chandra Bhagat Pharma Ltd IPO?

    The Kostak price of Chandra Bhagat Pharma Ltd IPO is Not Available at the moment.

  7. What is the Subject to Sauda price for Chandra Bhagat Pharma Ltd IPO?

    The Subject to Sauda price for Chandra Bhagat Pharma Ltd IPO is Not Available at the moment.

Chandra Bhagat Pharma Ltd IPO Review/Comments

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