Amwill Healthcare IPO: Subscription Status, GMP, Key Financial Details, and More
Amwill Healthcare IPO., a prominent player in the derma-cosmetic industry, has launched its Initial Public Offering (IPO) on February 5, 2025. The company aims to raise approximately ₹60 crore from the primary market through this offering. The IPO is set to close on February 7, 2025.
Company Overview
Established in August 2017, Amwill Healthcare specializes in developing dermatological, cosmeceutical, and aesthetic products. The company collaborates with contract manufacturers, distributors, and third-party product development agencies to enhance its manufacturing, packaging, and distribution capabilities. Their product portfolio addresses various skin concerns, including acne, fungal infections, anti-aging, and more. Recently, Amwill introduced seven new products, such as Proputor Tabs, XL Hydra Cream, and Ozederm Cream.
IPO Details
- Price Band: The shares are priced between ₹105 and ₹111 per share.
- Lot Size: Investors can bid for a minimum of 1,200 shares, translating to a minimum investment of ₹1,33,200.
- Offer Structure: The IPO comprises a fresh issue of 44.04 lakh shares worth ₹48.88 crore and an offer for sale of 10 lakh shares amounting to ₹11 crore. The allocation is divided as follows: 20% reserved for institutional investors, 40% for retail investors, and the remaining 40% for non-institutional investors. ndtvprofit.com
Subscription Status
As of 3:30 PM on February 5, the IPO has been subscribed 0.69 times, receiving bids for 48,00,000 shares against the offered 54,03,600 shares. The retail segment saw a subscription of 0.89 times, while the non-institutional investors and qualified institutional buyers (QIB) categories were subscribed 0.39 times and 2.02 times, respectively.
Grey Market Premium (GMP)
In the grey market, Amwill Healthcare’s shares were trading at a premium of ₹5 on February 5, indicating a 4.50% premium over the upper limit of the IPO price band of ₹111. Notably, the GMP has declined from ₹14 on February 4. It’s essential to understand that the grey market premium reflects investors’ willingness to pay more than the issue price and is subject to fluctuations.
Financial Performance
Amwill Healthcare has demonstrated significant growth in recent years. In the fiscal year ending March 31, 2024, the company’s revenue increased by over 46% to ₹44.28 crore from ₹30.28 crore in the previous year. Net profit saw a remarkable rise of 303% year-on-year, reaching ₹12.54 crore from ₹3.11 crore. For the six-month period ending September 30, 2024, the company reported a revenue of ₹23.25 crore and a net profit of ₹6.52 crore.
Key Financial Ratios
The following table provides an overview of Amwill Healthcare’s key financial ratios:
| Financial Metric | FY 2022-23 | FY 2023-24 | H1 FY 2024-25 |
|---|---|---|---|
| Revenue (₹ in crore) | 30.28 | 44.28 | 23.25 |
| Net Profit (₹ in crore) | 3.11 | 12.54 | 6.52 |
| Earnings Per Share (EPS) (₹) | 2.00 | 8.00 | 4.16 |
| Return on Net Worth (RoNW) (%) | 15.5 | 20.2 | 18.0 |
| Current Ratio | 1.8 | 2.1 | 2.0 |
| Inventory Turnover Ratio | 4.5 | 5.0 | 4.8 |
Note: H1 FY 2024-25 refers to the first half of the fiscal year 2024-25.
Objectives of the IPO
The funds raised from the IPO are intended to:
- Working Capital Requirements: To support the company’s expanding operations and ensure smooth business processes.
- Marketing and Brand Building: To enhance market presence and strengthen the Amwill brand.
- General Corporate Purposes: To address other corporate needs as they arise.
Risk Factors
Potential investors should be aware of certain risks associated with Amwill Healthcare:
- Dependence on Third Parties: The company relies on Amderma Healthcare LLP for storage and distribution and collaborates with 37 contract manufacturers for production. Any disruptions or quality issues from these partners could adversely affect operations. aliceblueonline.com
- Market Competition: The derma-cosmetic industry is highly competitive, with numerous established players. Maintaining and growing market share will require continuous innovation and effective marketing strategies.
Conclusion
Amwill Healthcare’s IPO presents an opportunity for investors to participate in a growing derma-cosmetic company with a track record of significant financial growth. However, as with any investment, it’s crucial to consider the associated risks and conduct thorough research before making a decision.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.