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GreenSignal Bio Pharma IPO Review – Details

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GreenSignal Bio Pharma has announced its IPO. The cpampny is engaged in development, manufacturing & sale of BCG vaccine.

Issue Details  of GreenSignal Bio Pharma IPO:  

  • IPO Open :  9th – 11th Nov  2016
  • Issue Price band:  Rs 76-80
  • Issue Size:   Rs crore
  • Market lot :   175 shares or multiples
  • Max shares for Retail:   2450
  • Book Running Lead Managers :   Indian Overseas Bank
  • Registrar – BigShare Services
  • Listing: BSE/NSE

Grey market premium – (These are just indicative values)

GreenSignal Bio IPO Issue Allocation

  • Qualified institutional buyers (QIBs) –  50 % of the total issue size.
  • Non-institutional investors (NIIs) –  15 % of the issue size.
  • The retail quota limit in the issue = 35 % of the issue size.

GreenSignal Bio Pharma is Chennai based pharmaceutical company (incorporated in 2005) and engaged in the development, manufacture and sale of the BCG vaccine.

The products company manufacture includes a BCG vaccine and BCG-ONCO, an immunotherapy drug (used in the treatment of urinary bladder cancer). Both vaccines produced by GreenSignal are generic drugs and company do not require any patents for the same.

GreenSignal has a long term contract with UNICEF to supply the BCG vaccine to UNICEF. GreenSignal is among 4 companies worldwide who have been WHO-prequalified to supply the BCG vaccine to UNICEF. Other customers include Indonesia, Nepal and Ministry of Health, India.

 

Promoters holdings:  Promoter group hold 83% and 16% is owned by Avon Cycles.

Objective of the issue:  The issue offer of sale by existing shareholder s and company will not received any funds. The proceed from IPO will be used 

  • To carry out the sale of up to 14,579,560 Equity Shares by the Selling Shareholders.
  • Achieve the benefits of listing the Equity Shares on the BSE and the NSE;

Financials: 

(in Rs crores) 2016 2015 2014 2013 2012
Revenue 20.49 6.6 3.53 11.70 11.17
Profit after tax 5.31 -0.21 -1.29 -0.50 -0.48

Risks:

The business is dependent on 2 products only & there are only 2 main customers.

Valuation as compared to its peers:

Should you invest:    

 The business is dependent on 2 products only & there are only 2 main customers. Also the comapny has poor track record for profits – 4 out of last 5 financial year were loss making.
 
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