Hamps Bio is a dynamic company operating in two primary sectors: pharmaceutical formulations and freeze-dried/frozen products. With a diverse product portfolio spanning tablets, syrups, capsules, injectables, and nutritional supplements, the company has a strong presence in the pharmaceutical industry under its brand name "Hamps". Additionally, Hamps Bio is involved in the manufacturing of freeze-dried and frozen foods, such as fruits, vegetables, herbs, and flowers, establishing itself as a notable player in the FMCG sector as well.

This Fixed Price Issue IPO aims to raise ₹6.22 Crores through the issuance of 12.20 Lakh Shares at a fixed price of ₹51 per share. At this price, the market capitalization of the company will be ₹22.21 Crores. The IPO subscription period commenced on December 13, 2024, and is set to close on December 17, 2024, with the allotment process expected to be finalized by December 18, 2024. The shares are expected to list on the BSE SME on December 20, 2024.

Grey Market Premium (GMP) and Subscription Status

As of December 17, 2024, the Grey Market Premium (GMP) of the Hamps Bio IPO stands at ₹43, which translates to a potential listing gain of 84.31%. This represents a substantial potential for upside based on the market interest and demand for the stock.

The IPO subscription status has been strong, with the Hamps Bio IPO subscribed 1003.34 times as of the third day of the subscription period (December 17, 2024). This high demand is a positive indicator of investor confidence in the company’s future prospects.

Allotment Process and Financial Overview

The allotment status for the Hamps Bio IPO will be available on December 18, 2024, and can be checked on the Registrar’s Website. Investors can check their status using their application number, PAN, or DP Client ID.

Hamps Bio’s financial performance has shown consistent growth, with revenues from operations for FY2024 amounting to ₹436.42 Lakh, reflecting a steady upward trend from previous years. The company posted a Profit After Tax (PAT) of ₹34.08 Lakh for FY2024, indicating healthy profitability. The EBITDA for FY2024 stood at ₹75.11 Lakh, demonstrating the company’s operational efficiency.

For the IPO, Hamps Bio is issuing shares at a pre-issue EPS of ₹1.76 and a post-issue EPS of ₹1.15. The pre-issue P/E ratio is 28.98x, and the post-issue P/E ratio is 44.37x, which suggests that the IPO is reasonably priced, though with higher valuation post-issue. The company has an ROCE of 18.31% and an RoE of 21.14% for FY2024, which indicates a good return on capital and equity.

Investment Recommendation

Given the GMP trend of 84.31%, solid financial performance, and growing demand for its pharmaceutical and FMCG products, we recommend risky investors to apply for the Hamps Bio IPO for potential listing gains. However, as with any investment, particularly in smaller IPOs, investors should be aware of the associated risks.

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