Influx Healthtech Limited, a Mumbai-based Contract Development and Manufacturing Organization (CDMO) specializing in healthcare, nutraceuticals, and cosmetic products, has witnessed a massive investor response to its IPO, with an oversubscription of 187.32 times. This robust subscription figure underlines the company’s positioning within high-growth sectors and reflects strong investor confidence in India’s evolving CDMO landscape.

The IPO comprised a Book Built Issue of ₹58.57 Crores, featuring a Fresh Issue of 50 lakh equity shares (₹48 Cr) and an Offer for Sale of 11 lakh equity shares (₹10.57 Cr). The issue opened on June 18, 2025, and closed on June 20, 2025, with allotment scheduled for June 23, 2025, and listing on NSE SME expected around June 25, 2025.

The IPO price band was set between ₹91 and ₹96, with a lot size of 1,200 shares, requiring a minimum investment of ₹1,15,200 for retail investors and ₹2,30,400 for HNIs (2 lots). At the upper price band, the market capitalization is expected to be ₹222.24 Crores.

Company Overview

Founded in 2020, Influx Healthtech has quickly risen as a reliable CDMO player, operating out of three manufacturing units in Thane, Maharashtra, covering over 36,676 sq. ft. The company manufactures products across a wide spectrum—nutraceuticals, veterinary food, cosmetics, homecare, herbal items, dietary supplements, and APIs. All facilities are compliant with international certifications such as GMP, HACCP, ISO 22000, and Halal, which bolster its credibility in global and domestic markets.

Key offerings include oral dispersible films, tablets, capsules, gummies, injectables, and specialized nutraceutical blends. Their operations are supported by 163 employees and a dedicated formulation development team.

Financial Highlights

The company's revenues have shown consistent growth in recent years, especially in its nutraceutical segment:

• FY23: ₹71.61 Cr

• FY24: ₹93.47 Cr (30.52% YoY growth)

• FY25: ₹94.04 Cr (0.61% YoY growth)

While the nutraceutical division is the top contributor, the company is actively diversifying across cosmetics, veterinary, and homecare segments to mitigate sectoral risks.

Anchor investors have also shown confidence in the IPO, subscribing to 17.36 lakh shares and investing ₹16.66 Cr at ₹96 per share, demonstrating institutional trust in the company’s long-term prospects.

Sectoral Tailwinds: Why the Buzz?

The enormous investor appetite for Influx Healthtech’s IPO is also rooted in the sectoral growth trends across its core segments:

1. Nutraceuticals

India’s share in the $400 billion global nutraceutical market remains under 2%, indicating massive growth headroom. The government's push through regulatory support and incubation hubs provides an enabling environment for companies like Influx to scale faster.

2. Cosmetics & Homecare (FMCG)

The FMCG sector, especially the cosmetic and personal care space, is witnessing CAGR of 27.9%, expected to reach $615.87 billion by 2027. Consumer trends favour organic, cruelty-free, and herbal formulations, a segment Influx is well-positioned to capitalize on.

3. Veterinary & Pet Food

The Indian pet food market is expected to grow from $843.89 million in 2024 to $1.98 billion by 2030, driven by rising pet ownership and awareness of pet nutrition. Influx's planned manufacturing facility for veterinary food directly targets this high-potential segment.

4. Ayurvedic Products

With increasing global and domestic awareness, Ayurveda is becoming mainstream. Influx’s production of herbal and ayurvedic formulations aligns well with this ongoing shift towards natural healthcare solutions.

Use of IPO Proceeds

Influx plans to strategically allocate the IPO proceeds to further cement its manufacturing capabilities:

1. ₹22.60 Cr – Capital expenditure for nutraceutical manufacturing unit

2. ₹11.58 Cr – Setting up veterinary food production facility

3. ₹2.76 Cr – Procurement of machinery for homecare and cosmetics

4. Remaining – Utilized for general corporate purposes

These expansions will allow Influx to de-risk single-division dependency, increase capacity utilization, and potentially add new product verticals aligned with future demand.

Grey Market Premium & Valuation

The Grey Market Premium (GMP) of ₹11, translating to a listing estimate of ₹107 per share, indicates potential listing gains of 10.56%. While not extraordinarily high, the GMP is consistent with market sentiment and strong fundamentals, and remains positive in a volatile SME IPO environment.

Strengths

• Diverse Product Range: From tablets to gummies and homecare products, ensuring wide market appeal.

• Robust Client Base: Includes top names such as Bling Brands, Bruder Life Sciences, and others.

• Strong Quality & R&D: In-house R&D with rigorous Quality Control (QC) at every production stage.

• Certifications & Compliance: International-level certifications that bolster export capability.

Risks and Concerns

Despite strengths, investors should remain mindful of the following:

1. High dependency on nutraceuticals – Any slowdown or regulatory changes could impact revenues.

2. Single manufacturing region – All facilities are located in Palghar, Maharashtra, exposing it to geographical risk.

3. Limited regional diversity in sales – Major revenue flows from Maharashtra, Karnataka, and Gujarat.

4. No AYUSH license yet – While currently not needed, future expansion in Ayurvedic domain may require it.

These concerns, while not immediately material, do require long-term monitoring, especially as the company scales operations and potentially targets international markets.

Expert Verdict

The Influx Healthtech IPO has delivered outstanding subscription numbers, suggesting investor confidence driven by sectoral momentum, financial consistency, and a sound business model. The company is riding multiple tailwinds in nutraceuticals, FMCG, veterinary, and herbal wellness, all of which are experiencing explosive growth.

With a GMP of ₹11, strong anchor backing, and multi-sector exposure, the IPO offers moderate listing gains potential and long-term prospects, particularly for those bullish on India’s healthcare manufacturing and export narratives.

However, risks from geographic concentration, regulatory dependencies, and client diversification should be considered for long-term positions.

Final Recommendation: SUBSCRIBE for listing gain and long-term exposure

While SME IPOs come with inherent illiquidity and volatility, Influx Healthtech stands out due to its diverse product mix, credible clients, sectoral relevance, and clear growth roadmap. For investors comfortable with the SME risk-return profile, this IPO presents a compelling opportunity.

Disclaimer:
This article is intended for educational and informational purposes only. It is not investment advice or a recommendation to buy, sell, or hold any securities. Investors should perform their own due diligence or consult with a financial advisor before making investment decisions. The views and data presented here are based on publicly available information as of the publication date and are subject to change.

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