Amanta Healthcare IPO: Know key strengths, risks before you invest

Amanta Healthcare IPO: The initial public offering (IPO) of pharmaceutical company Amanta Healthcare will open for bidding on Monday, September 1, 2025. The maiden public issue worth ₹126 crore comprises an entire fresh issue of 10 million equity shares. There is no offer for sale (OFS) component.

 

The three-day subscription window is scheduled to close on Wednesday, September 3, 2025. The basis of allotment of shares is expected to be finalised on Thursday, September 5. Shares of Amanta Healthcare will make their debut on the exchanges, NSE and BSE, tentatively on Tuesday, September 9.

 

Amanta Healthcare IPO is available at a price band of ₹120 to ₹126 per share, with a lot size of 119 shares. 

 

 

MUFG Intime India is the registrar for the issue. Beeline Capital Advisors is the book-running lead manager.

 

According to the red herring prospectus (RHP), the company plans to use the net issue proceeds for the purchase of equipment, plant and machinery for setting up a new manufacturing line of SteriPort at Hariyala, Kheda, Gujarat, and SVP at Hariyala, Kheda, Gujarat. The remaining funds will be used for general corporate purposes.  

Here are the key strengths of Amanta Healthcare, as outlined in the RHP:

Large manufacturing capabilities: Amanta operates a large, ISO and WHO-GMP certified sterile liquid manufacturing facility in Hariyala, Gujarat, spread over 66,852 sq. meters. Equipped with advanced ABFS and ISBM technologies, it supports a wide fill volume range (2ml to 1000ml) and flexible production capabilities to meet diverse customer needs from R&D to commercial scale.

 

Diverse product portfolio: The company has a well-diversified product portfolio across six therapeutic segments (fluid therapy, formulations, diluents, ophthalmic, respiratory care and irrigation solutions), offering a wide range of container types and fill volumes (2ml to 1000ml). With 47 products registered in 120 international jurisdictions, this diversity supports business consistency and sustainability.

 

Wide marketing network: Amanta Healthcare has a strong domestic marketing network with over 320 distributors and a sales team of around 96 people, primarily catering to hospitals and nursing homes. Supported by integrated IT systems like Pharma Cloud and sales force automation tools, it ensures efficient sales, distribution, and demand forecasting.

Here are the key risks associated with investing in Amanta Healthcare IPO:

Single facility dependency: The company’s entire manufacturing operations are carried out at a single facility located in Hariyala, district Kheda, Gujarat. Any disruption at this location due to power or water shortages, machinery failure, natural disasters, political unrest, or other unforeseen events could adversely impact the company’s business, financial condition, and operational results.

 

Raw material volatility: The company relies on a limited number of suppliers for key raw materials such as LDPE (Low-Density Polyethylene) and PP (Polypropylene) granules, the prices of which are subject to crude oil price volatility. Any disruption in supply or significant price fluctuation could adversely affect its business, financial condition, and operational performance.

 

Pending legal proceedings: Amanta Healthcare is involved in material litigation, and an adverse outcome in this proceeding could negatively impact its business.

 

High finance costs: The company’s finance costs have been significantly high, comprising 45.78 per cent, 57.25 per cent, and 62.6 per cent of the restated earnings before interest, tax, depreciation and amortisation (Ebitda) for Fiscal 2025, 2024, and 2023, respectively. Continued high finance costs may adversely impact the company’s business and cash flows if not effectively managed.