Hamps Bio is engaged in the ethical marketing and distribution of pharmaceutical formulation products (Pharma) across a wide range of dosages, including tablets, syrups, capsules, injectables, oils, gels, and powders used as medicine and nutrition supplements. Additionally, the company manufactures freeze-dried and frozen products (FDFP) such as fruits, vegetables, herbs, and flowers. Under its brand name “Hamps”, the company is well recognized in the pharmaceutical industry and in the freeze-dried and frozen food segment.

The Hamps Bio IPO is a Fixed Price Issue amounting to ₹6.22 Crores, consisting entirely of a Fresh Issue of 12.20 Lakh shares. The subscription period for the Hamps Bio IPO started on December 13, 2024, and will close on December 17, 2024. The allotment is expected to be finalized on or about December 18, 2024, with a tentative listing date set for December 20, 2024, on the BSE SME.

The share price for the Hamps Bio IPO is set at ₹51 per equity share. At this price, the market capitalization of Hamps Bio Limited will be approximately ₹22.21 Crores. The lot size for the IPO is 2,000 shares, and retail investors are required to invest a minimum of ₹1,02,000. For High-Net-Worth Individuals (HNIs), the minimum investment is 2 lots (4,000 shares), totaling ₹2,04,000. The book-running lead manager for the IPO is MARWADI CHANDARANA INTERMEDIARIES BROKERS PRIVATE LIMITED, while BIGSHARE SERVICES PVT LTD is the registrar, and Pure Broking Private Limited is the Market Maker for the Hamps Bio IPO.

The Grey Market Premium (GMP) for the Hamps Bio IPO is currently ₹14, indicating a potential listing gain of 27.45%. However, trading in the grey market is unregulated, and the GMP is not a reliable method for price discovery. It should only be considered as an informational tool. The actual price will be determined when the shares are listed on the exchange.

As of December 13, 2024, the expected listing price is ₹65, showing potential gains of 27.45% at the IPO price of ₹51 per share. The IPO has attracted attention due to Hamps Bio's solid financial performance and the strong demand seen in the grey market.

Hamps Bio IPO Review
Hamps Bio has experienced steady revenue growth in recent years. The revenues for the period ended October 31, 2024, were ₹436.42 Lakh, showing growth compared to previous years. The EBITDA for the same period stood at ₹75.11 Lakh, reflecting the company’s strong operational performance. The Profit after Tax (PAT) for the period ended October 31, 2024, was ₹34.08 Lakh, a significant improvement over the previous fiscal years.

The company is offering shares with a pre-issue P/E ratio of 28.98 and a post-issue P/E ratio of 44.37. These ratios suggest that the IPO is fairly priced compared to industry standards. The company’s Return on Capital Employed (ROCE) for FY24 is 18.31%, and its Return on Equity (RoE) for FY24 stands at 21.14%, indicating a strong financial profile.

The proceeds from the Hamps Bio IPO will be utilized for purchasing plant and machinery for the FMCG division (₹359.00 Lakh), enhancing the visibility of the brand (₹50.00 Lakh), and general corporate purposes (₹151.87 Lakh). These objectives aim to strengthen the company’s infrastructure and brand presence, contributing to its future growth.

Conclusion:
Given Hamps Bio’s solid financial track record, the strong growth potential in its pharmaceutical and FMCG divisions, and the attractive listing gains suggested by the GMP, we recommend risky investors to apply for the Hamps Bio IPO for potential listing gains.

The Upcoming IPOs in this week and coming weeks are Identical Brain Studios, Transrail Lighting, Mamata Machinery, DAM Capital  Sanathan Textiles, Concord Enviro, Newmalayan Steel, Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Solar91 Cleantech, Unimech Aerospace, Rosmerta Digital, Indo Farm, and Avanse FinancialThe Current active IPO is NACDAC Infrastructure, International Gemmological and Hamps Bio.

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