Macleods Pharmaceuticals Ltd IPO

Upcoming

IPO Synopsis

Macleods Pharmaceuticals, Mumbai-based drug is set to raise funds worth Rs. 5000 crores and has filed preliminary papers with the Sebi for an initial public offering (IPO).
This will be the second largest pharma IPO to hit the street after Gland Pharma’s Rs 6,480 crore issue in November 2020.
The issue comprises entirely of an offer for sale comprising 60.5 million equity shares by promoters.
Kotak Mahindra Capital Company, Citigroup Global Markets India, Edelweiss Financial Services, ICICI Securities and Nomura Financial Advisory and Securities (India) Private Limited are the book running lead managers to the IPO.

Objective of the Issue
The object of the issue is to:
1. carry out the Offer for Sale of up to 60,482,040 Equity Shares by the selling shareholders
2. enhance the visibility and brand image as well as provide a public market for the equity shares in India

About Macleods Pharmaceuticals Ltd

Mumbai-based, Macleods Pharmaceuticals was established in 1989, and is the 7th largest drug firm in Indian Pharmaceutical Market based on domestic sales. The company earns 80% of the domestic sales from non-metros(higher than 70.0% as recorded for the IPM) and 20% from the metros.
The company is engaged in developing, manufacturing, and marketing a wide range of formulations and known for its anti-infectives, cardiovascular, anti-diabetic, dermatology, and hormone treatment brand and has a significant presence in North and East India.
Sales from anti-diabetics, cardiovascular, derma, respiratory and hormones therapies grew at a CAGR of 28.5%, 13.4%, 11.7%, 11.0%, and 10.4%, respectively, higher than the IPM growth of 12.3%, 11.1%, 10.8%, 6.2% and 6.9%, for the same therapies in the same periods
The drug firm launched new brands in the last three Fiscals, such as Vildamac and Vildamac M, in the anti-diabetic market, has gained market share among non-innovator brands in the IPM (Vildamac comprised 7.3% of the Vildagliptin market, and Vildamac M comprised a market share of 8.6% of the Vildagliptin+Metformin market) by domestic sales
The company has presence in more than 170 countries across developed and emerging markets in North America, Europe, Africa, Asia, South America etc
Macleods also has an extensive portfolio of anti-TB products, and has the highest number of WHO prequalified anti-TB products globally with 32 registrations.

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY21 FY20 FY19
Revenue 7199.4 6902.8 5870.4
EBITDA 2096.7 1724.3 1340.9
PAT 1630.7 1461.2 1192.1
Particulars (in Rs. Crores) FY21 FY20 FY19
Total Assets 5734.7 9573.4 7568.9
Share Capital 20.0 20.0 20.0
Total Borrowings 79.7 36.1 131.9
Particulars (in Rs. Crores) FY21 FY20 FY19
Net cash generated from / (used in) operating activities 1268.46 1373.42 694.21
Net cash from / (used in) investing activities -1337.59 -1164.58 -785.53
Net cash flow from / (used in) financing activities 29.50 -108.58 63.14
Net increase (decrease) in cash and cash equivalents -39.64 100.27 -28.18

Peer Comparison

Name of the Company Total Revenue Basic EPS Nav Rs. per share PE RoNW%

Macleods Pharmaceuticals Limited

7,199.4 33.74 63.37 NA 53.3%
Torrent Pharmaceuticals Limited 8004.8 73.98 344.94 35.11 21.5%
Alkem Laboratories Limited 8865.0 132.57 632.13 26.41 21.4%

Sun Pharmaceutical Industries Limited

33498.1 12.1 206.22 73.91 4.6%
Dr. Reddy's Laboratories Limited 19047.5 117.67 1,064.51 37.25 11.1%
Lupin Limited 15163.0 26.84 305.46 30.18 8.9%
Cadila Healthcare Limited 15102.2 20.84 145.83 19.26 14.64%
Eris Lifesciences Limited 1211.9 26.16 116.1 26.76 22.53%
Ipca Laboratories Limited 5420.0 90.11 371.79 11.14 24.20%


The key points are-

Key Points

  • Strengths

    1. One of the Leading and Fast-Growing Companies with Significant Presence in the IPM
    2. Proven Track Record of Building Brands
    3. Diversified Presence across Global Markets with Calibrated Business Model
    4. R&D-Led Differentiated Portfolio of Products
    5. Diversified and quality-compliant manufacturing capabilities

  • Risks

    1. It may experience a shortfall in the supply of the raw materials or an increase in their prices, or of other input costs.
    2. It could experience a material slowdown or shutdown in the manufacturing or R&D operations
    3. Failure to meet various quality standards and good manufacturing practices may result in increased product liabilities
    4. It derives a significant portion of its revenue from operations from a limited number of markets

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

FAQs

What is the minimum lot size and investment required for the Macleods Pharmaceuticals IPO?

Macleods Pharmaceuticals IPO details are yet to be announced.

What is the price band of the IPO?

Macleods Pharmaceuticals IPO details are yet to be announced.

When does the Macleods Pharmaceuticals issue open and close?

Macleods Pharmaceuticals IPO details are yet to be announced.

What is the size of Macleods Pharmaceuticals IPO issue?

The IPO comprises entirely of an offer for sale comprising 60.5 million equity shares by promoters. 

Who are the promoters/key personnels of Macleods Pharmaceuticals?

Macleods Pharmaceuticals is promoted by Girdharilal Bawri, Banwarilal Bawri and Dr. Rajendra Agarwal

What is the allotment date of Macleods Pharmaceuticals?

Macleods Pharmaceuticals IPO details are yet to be announced.

What is the Macleods Pharmaceuticals listing date?

Macleods Pharmaceuticals IPO details are yet to be announced.

Who are the book runners for Macleods Pharmaceuticals IPO?

Kotak Mahindra Capital Company, Citigroup Global Markets India, Edelweiss Financial Services, ICICI Securities and Nomura Financial Advisory and Securities (India) Private Limited are the book running lead managers to the issue.

What is the objective of the issue?

The proceeds from the issue will be used for: 
1. carry out the Offer for Sale of up to 60,482,040 Equity Shares by the selling shareholders
2. enhance the visibility and brand image as well as provide a public market for the equity shares in India.

How to apply for the Macleods Pharmaceuticals IPO?

To apply for the IPO, follow the steps given below

1. Login to your 5paisa account and select the issue in the current IPO section
2. Enter the number of lots and price at which you wish to apply for
3. Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
4. You will receive a mandate notification to block funds in your UPI app

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