Aptus Pharma Makes Strong Debut with 20% Premium, Lists at ₹84 Following Solid Subscription

Aptus Pharma Limited, the pharmaceutical formulations marketing and distribution company, made a strong debut on the BSE SME on September 30, 2025. After closing its IPO bidding between September 23-25, 2025, the company commenced trading with a 15.43% premium, opening at ₹80.80 and reaching ₹84 with gains of 20%.

Aptus Pharma Listing Details

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Aptus Pharma Limited launched its IPO at ₹70 per share with a minimum investment of 4,000 shares costing ₹2,80,000. The IPO received a solid response with a subscription of 22.27 times - retail investors at a strong 31.43 times, NII at an outstanding 28.75 times, and QIB at a weak 1.24 times.

First-Day Trading Performance Outlook

Listing Price: Aptus Pharma share price opened at ₹80.80, representing a premium of 15.43% from the issue price of ₹70, and extended gains to ₹84, delivering strong returns of 20% for investors, reflecting positive market sentiment.

Growth Drivers and Challenges

Growth Drivers:

• Diversified Product Portfolio: Comprehensive range of 194 pharmaceutical formulations across eleven therapeutic segments, including antacids, pain management, antibiotics, cardiology, neuropsychiatry, and nutraceuticals under multiple brand divisions.
• Robust Distribution Network: Well-established distribution model with 125 direct and sub-distributors, a sales team of 54 field personnel, and strategic manufacturing alliances across Gujarat, Uttarakhand, and Himachal Pradesh.
• Attractive Valuation: Reasonable post-IPO P/E of 15.49,x providing relatively modest valuation compared to pharmaceutical sector peers offering potential upside for investors.

Challenges:

• Earnings Sustainability Concerns: Dramatic PAT surge of 288% in FY25 raises questions about earnings sustainability and potential window dressing for favourable IPO valuation, requiring scrutiny of business fundamentals.
• Asset-Light Business Model: Third-party contract manufacturing model without its own production facilities, creating dependency on manufacturing partners and potential supply chain vulnerabilities.
• Weak Institutional Interest: Very low QIB subscription of 1.24 times, indicating limited institutional confidence despite strong retail participation, reflecting concerns about the business model and sustainability.

Utilisation of IPO Proceeds

• Infrastructure Development: ₹1.63 crore for capital expenditure on office premises with furniture and industrial racks, enhancing operational infrastructure and storage capabilities.
• Working Capital: ₹8.00 crore for working capital requirements supporting inventory management, distributor network expansion, and operational scaling in pharmaceutical distribution.
• General Corporate Purposes: Supporting business operations, strategic initiatives, and expansion activities for long-term growth in the pharmaceutical market.

Financial Performance of Aptus Pharma

• Revenue: ₹24.64 crore for FY25, showing robust growth of 38% from ₹17.88 crore in FY24, reflecting strong demand and successful business execution in pharmaceutical distribution.
• Net Profit: ₹3.10 crore in FY25, representing exceptional growth of 288% from ₹0.80 crore in FY24, raising concerns about the sustainability of such a dramatic profit surge.
• Financial Metrics: Outstanding ROE of 44.50%, impressive ROCE of 45.66%, elevated debt-to-equity ratio of 1.49, strong EBITDA margin of 19.31%, and estimated market capitalisation of ₹57.97 crore.