/ -- IPO Subscribed Amidst Subdued Primary Market
Deccan Health Care Ltd ("Deccan/Company"), engaged in the business of developing, manufacturing and marketing a broad range of nutraceutical, cosmeceutical, ayurveda and healthcare products, closed the bid subscription of its initial public offering ("IPO") for 42,12,000 equity shares at a price band of INR 95-100 per share amounting to gross proceeds of INR 42.12 Crores, despite volatile markets and lukewarm responses to IPOs recently. The issue has been subscribed to 1.60 times.
SME IPOs since April 2018
No of Listings (Rs in Cr)
*Listing data assuming listing of Deccan Health Care Limited
Since April 2018, 20 SME IPOs have raised funds over INR 25 Crs, Deccan being the 20th one. With IPO market drying up and no IPOs on main board since November, this is a first IPO in last 2 months that has garnered over INR 40 Crores amidst subdued markets, wherein notable participation was seen from both HNIs and retail investors. Above table shows the SME IPO market activity in past months.
Commenting on the successful completion to the IPO, Mr. Minto Gupta, Managing Director, said, "We are thankful to our investors for showing faith in our company and our capability to tap nutraceutical opportunity in India. With good wishes and support of our stakeholders we aim to achieve many more milestones."
The Company plans to utilize its issue proceeds towards repayment of certain secured borrowings, purchase of Plant & Machinery and for other general corporate purposes.
The equity shares of Deccan are proposed to be listed on BSE SME platform. Pantomath Capital Advisors Pvt Ltd is the lead manager to the issue.
About Deccan Health Care Limited:
Hyderabad based Deccan Health Care Limited, incorporated in the year 1996, has innovated and developed cost effective products that are unique and differentiated to combat diseases. In 2010, the company set up own manufacturing facility at SIDCUL Pantnagar Rudrapur, Uttarakhand. The company has a diversified product portfolio with product basket consisting of more than 1,500 products used for various purposes such as hair care, skin care, heart care, immunity building, etc. The company has identified over 50 consumer wellness goals and over 200 diseases, disorders disabilities which can be prevented by meeting RDA of micronutrients.
The Company is also an ISO 9001:2015 certified for Quality management System for manufacturing and supply of Nutraceutical & Pharmaceutical Products. Spread over 3,536 Sq. mts., its manufacturing facility is equipped with the requisite plant and machineries including Effluent Treatment Plant and other resources required for our manufacturing process. The company posted annual turnover of Rs. 3,976.07 lakhs in 2018 from Rs. 1,617.70 lakhs in the year 2016.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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