Amanta Health
IPO Size: Rs. 126 cr, Entirely Fresh Issue
- for funding Rs. 100 cr brownfield capex
Price band: Rs. 120-126 per share
- Raised Rs. 20 cr at Rs.100 per share in Jul 2024
M cap: Rs. 489 cr, implying 26% dilution
IPO Date: Mon 1st Sep to Wed 3rd Sep 2025, Listing Tue 9th Sep 2025
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Gujarat based Pharma Company
Amanta Health manufactures parenteral (sterile liquid) products, both large value and small value, across 6 therapeutic areas. Domestic branded generics account for half the topline with international branded generics (UK, Middle East and Africa) accounting for 1/3rd.
Brownfield Expansion
As installed capacity of 33 cr units is 96% utilized in FY25, company is expanding SteriPort and small value parenteral capacity at its existing plant in Gujarat. This will result in 49% capacity expansion, by FY27E, in 2 phases.
Weak Financials
Despite rising production volume, topline has remained stagnant in past 3 fiscals, at Rs. 275 cr in FY25, from Rs. 259 cr in FY23. Amanta’s net margin is slim, at just 3.8% in FY25, with a low RoE of 12%, due to large capex.
Coupled with this, balance sheet is highly leveraged, with a total debt of Rs. 195 cr, on net worth of Rs. 96 cr as of 31.3.25. Even post listing (no debt repayment planned from IPO proceeds), the debt equity ratio will be 0.8:1 which is not comforting. Business is also working capital intensive, with inventory and debtors together accounting for 5.5 months of sales.
Exorbitant Pricing
M cap of Rs. 489 cr implies a historic PE multiple of 34x, based on FY25 EPS of Rs. 3.7. Even if 50% growth is priced in for FY27E, one year forward PE multiple is seen at 29x, based on EPS of Rs. 4.5, on expanded equity. This is very steep for a small player with low single-digit margin and likely fall in RoE post listing.
