SPC Life Sciences Ltd, an unlisted public company based in Vadodara, Gujarat, is gearing up for its upcoming IPO, marking a significant milestone in its journey. Initial public offering (IPO) To raise funds, the SPC Life Sciences IPO comprises a fresh issue, showcasing the company’s growth and its appeal to investors interested in IPO opportunities.₹300 crores and an offer for sale of up to 8,938,870 equity shares by the Promoter Selling Shareholder.
The much-awaited SPC Life Sciences IPO is expected to open in October 2023 and close in the same month, with a price band of ₹X to ₹Y per share The issue aims to list on the BSE and NSE, offering a minimum bid lot of X shares and a minimum application amount of ₹Y, providing investors a chance to partake in the SPC Life Sciences IPO journey. Allotment status and market lot size ahead of the listing.
SPC Life Sciences Company Overview
SPC Lifesciences is a knowledge-driven and fully integrated chemical company Established in 2005 in Gujarat, India, SPC Life Sciences offers basic and advanced intermediates, key starting materials, and custom APIs, focusing on chemistries involving long chain multi-stage reactions. Its core strengths include product leadership, chemistry expertise, intellectual property, supply chain, and manufacturing capabilities, making it a standout in the SPC Life Sciences sector.
- Key Highlights:
- SPC Life Sciences is striving to build an inspired, curious, and motivated team to bring out the best in its people and chemistry, reflecting the company’s commitment to excellence and innovation.
- The company believes that improvement is a way of life, constantly driving its people, products, and processes to explore the endless possibilities that chemistry offers, embodying the spirit of continuous advancement.
- SPC Life Sciences has been recognized as one of India’s Growth Champions in 2021 by The Economic Times, a testament to its innovative approach and significant achievements.
- Company Profile:
- SPC Lifesciences Limited is a chemical manufacturing company based in Vadodara, Gujarat, India.
- Established in 2006, the company is a leader in various KSMs (Key Starting Materials) and APIs (Active Pharmaceutical Ingredients).
- As a knowledge-driven, integrated pharma company, SPC Life Sciences offers basic and advanced intermediates, key starting materials, and custom APIs, underscoring its role in the pharmaceutical industry.
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Key Aspects |
Details |
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Recognition |
‘Dream companies to work for’ by HRD Congress in 2020, ‘Best Employer’ award |
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Strategy |
Rapid development, intensive capital investments, focus on innovation |
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Product Range |
Advanced chemistry intermediates for anti-depressants, anti-diabetics, anti-Parkinson’s, anti-coagulants, antithrombotic, and anti-psychotics |
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Capabilities |
Specialized in various chemical processes,SPC Life Sciences excels in a variety of chemical processes like nitration, halogenation, condensation, Friedel-Crafts, Mannich reaction, reduction, alkylation, dealkylation, esterification, resolution, oxidation, hydrolysis, and amidation, showcasing its comprehensive expertise. |
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Expansion Plans |
The company plans to add 5,000 MT/year capacity for contract manufacturing of APIs, advanced intermediates, and active pharmaceutical ingredients, further expanding its capabilities and reinforcing its commitment to quality and innovation. |
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Manufacturing Facilities |
Three facilities located in Vadodara, Ankleshwar, and Dahej, Gujarat, India |
SPC Life Sciences Financials ( Profit & Loss )
SPC Life Sciences has demonstrated robust financial performance in recent years. According to the available data:
- Revenue and Profitability
- In FY2021-22, the company reported revenue of ₹146.44 crores and a net profit of ₹19.23 crores.
- Its EBITDA margin expanded from 16.96% to 20.62% during this period, indicating improved operational efficiency.
- Growth and Expansion
- The company’s operating revenues ranged between INR 100 crores and INR 500 crores for the financial year ending on March 31, 2020.
- Its EBITDA increased by 4.50% over the previous year, while its book net worth grew by an impressive 46.19%.
- Financial Ratios
- In FY2021-22, SPC Life Sciences reported an Earnings Per Share (EPS) of ₹4.30.
- The company’s Return on Net Worth (RoNW) stood at a healthy 28.00%, indicating efficient utilization of shareholders’ funds.
- Its Net Asset Value (NAV) per share was ₹61.48 as of FY2021-22.
The company’s financial statements for FY2021-22, FY2020-21, and FY2019-20 are available, providing detailed insights into its financial performance, including revenue, expenses, profits, assets, liabilities, and other key metrics.
SPC Life Sciences IPO
The SPC Life Sciences IPO aims to raise around ₹[.] crores, comprising a fresh issue of ₹300 crores and an offer for sale of up to equity shares, marking a significant step towards its IPO.8,938,870 equity shares by the Promoter Selling Shareholder. The key objectives and utilization of the IPO proceeds are as follows:
- Debt Repayment/Prepayment: A portion of the funds raised through the fresh issue will be utilized for repaying or prepaying certain outstanding borrowings of the company.
- Funding Capital Expenditure: The IPO proceeds will be used to fund capital expenditure requirements for setting up Phase-2 at the company’s Dahej facility, with the aim of expanding its product offerings, particularly in the pharmaceutical intermediates segment. Specifically, the new Dahej Facility will enable the manufacture of xanthene derivatives, as well as other intermediates and key starting materials (KSMs) for APIs in the anti-depressant and anti-psychotic therapeutic areas..
- Working Capital Requirements: A portion of the IPO proceeds will be allocated to meet the company’s working capital needs, supporting its ongoing operations and growth plans.
- General Corporate Purposes: The remaining IPO proceeds, after meeting the aforementioned objectives, will be utilized for general corporate purposes.
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Utilization of IPO Proceeds |
Estimated Amount (₹ crores) |
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Debt Repayment/Prepayment |
55.00 |
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Capital Expenditure (Dahej Facility Phase-2) |
122.33 |
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Working Capital Requirements |
40.00 |
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General Corporate Purposes |
(Remaining Proceeds) |
It is important to note that the IPO open and close dates, lot size, IPO size, and IPO price range are yet to be announced by the company. Additionally, SPC Life Sciences may consider a pre-IPO placement of up to , offering a strategic opportunity for early investment.₹60 crores, which would reduce the fresh issue size if completed.
Conclusion
The SPC Life Sciences IPO presents an exciting opportunity for investors to participate in the growth journey of SPC Life Sciences, a knowledge-driven and integrated chemical company. With a strong financial performance, strategic expansion plans, and a diversified product portfolio, the company is well-positioned to capitalize on the growing demand for advanced intermediates and key starting materials in the pharmaceutical industry.
As the IPO approaches, investors can look forward to evaluating the company’s prospects, financials, and growth strategies. The proceeds from the IPO are expected to fuel SPC Life Sciences’ expansion, debt reduction, and working capital needs, positioning the company for further growth and value creation. Overall, the IPO promises to be an interesting development in the chemical industry, offering investors exposure to a promising player in the field.
FAQs
- What is SPC Life Sciences IPO ?SPC Life Sciences has received the green light from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). This IPO is set to include fresh equity shares worth Rs 300 crore and an Offer For Sale (OFS) of 89.39 lakh equity shares by the company’s promoter, showcasing a significant step forward in its growth journey.
- What are the details regarding the allotment price for SPC Lifescience’s IPO?The price range for the SPC Lifescience IPO has been set between ₹265 to ₹274 per share, offering investors the opportunity to buy a minimum of 54 shares per lot. This strategic pricing aims to attract a broad spectrum of investors to participate in the IPO.
- What is the Grey Market Premium (GMP) for SPC LifeSciences’ IPO?Valued at 700 Cr, the IPO for SPC LifeSciences presents an attractive investment opportunity with its price band set between Rs 265 to Rs 274 per share. Scheduled for a listing date of 28th December 2021, the latest tentative Grey Market Premium (GMP) for this IPO stands at Rs 150, indicating strong investor interest.
- What was the listing price for SPC Life Science’s IPO?SPC Life Science made its debut on the NSE SME platform on August 30, 2023, with an IPO price set at ₹52 per share. The IPO required retail investors to commit to a minimum lot size of 2000 shares, translating to a minimum investment of ₹104,000, marking a significant milestone for the company in the SME IPO sector.