Onyx Biotec, a pharmaceutical company specializing in sterile water for injections and contract manufacturing, made its stock market debut on November 22, 2024. The stock listed at ₹54 on the NSE SME, an 11.5% discount to its issue price of ₹61. However, post-listing, the stock recovered by 5%, closing at ₹56.75.
IPO Subscription Highlights
The IPO, valued at ₹29.34 crore, was open for subscription from November 13 to November 18, 2024, and witnessed overwhelming investor interest, being oversubscribed 198 times.
| Category | Subscription |
|---|---|
| Retail Investors | 118 times |
| Non-Institutional Investors (NII) | 602 times |
| Qualified Institutional Buyers (QIB) | 32.49 times |
Company Overview and Use of Proceeds
Onyx Biotec is a pharmaceutical firm with two state-of-the-art manufacturing units in Himachal Pradesh. It specializes in sterile water for injections and dry powder injections, serving both Indian and international markets.
The IPO proceeds are allocated for:
- Upgrading Manufacturing Unit I for large-volume parenteral production.
- Establishing a high-speed carton packaging line in Manufacturing Unit II.
- Repayment of outstanding loans.
- General corporate purposes.
Manufacturing Capacities
| Unit | Product | Capacity (Per Day) |
|---|---|---|
| Unit I | Sterile Water for Injections | 6,38,889 units |
| Unit II | Dry Powder Injections, Dry Syrups | 40,000 and 26,667 units |
Key Clients
Onyx Biotec serves a range of prominent clients, including:
- Mankind Pharma
- Sun Pharmaceuticals
- Hetero Healthcare
- Zuventus Healthcare
- Reliance Life Sciences
Market Potential and Expert Opinions
Despite the weak listing, Onyx Biotec’s business fundamentals remain robust, supported by:
- High demand for sterile water injections globally.
- Long-standing partnerships with leading pharmaceutical companies.
Analyst View: Long-term investors might consider this stock due to its growth potential in contract manufacturing and expanding global markets.
Recommendation
Investors are advised to monitor the stock for further dips before accumulating. The company’s strategic focus on upgrading manufacturing capabilities positions it well for future growth.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult financial advisors before investing.
Click here to know more: here
