Onyx Biotec Ltd. is a leading pharmaceutical company that specializes in the manufacture and sale of generic and proprietary pharmaceutical products. Established in 2009, Onyx Biotec develops and distributes a wide range of pharmaceutical products, including Water for Injection (WFI), Dry Powder Injections, and Dry Powder Syrups. With over a decade of experience in the industry, the company focuses on expanding its market presence by enhancing its manufacturing capabilities and introducing new product lines.

The Onyx Biotec IPO is a Fixed Price Issue amounting to ₹29.34 Crores, consisting entirely of a fresh issue of 48.1 Lakh shares. The IPO subscription period starts on November 13, 2024, and closes on November 18, 2024. The allotment of shares will be finalized on November 19, 2024, with shares being listed on the NSE SME platform on November 21, 2024.

Onyx Biotec IPO Pricing and Subscription Details

The price band for the Onyx Biotec IPO is set between ₹58 to ₹61 per equity share. At the upper price band of ₹61 per share, the company will have a market capitalization of ₹110.60 Crores. The lot size for the IPO is 2,000 shares, which means that retail investors are required to invest a minimum of ₹1,22,000 for one lot. For High-Net-Worth Individuals (HNIs), the minimum investment is 2 lots (4,000 shares), amounting to ₹2,44,000.

Onyx Biotec IPO Subscription Status

As of November 18, 2024, the Onyx Biotec IPO subscription has been recorded at an impressive 184.60 times on the final day of the subscription period, indicating strong investor interest in the offering.

Onyx Biotec IPO Objectives

The proceeds from the fresh issue will be used for the following purposes:

1. ₹607.70 Lakhs for upgrading manufacturing Unit I to produce large-volume parentals for intravenous use.
2. ₹124.05 Lakhs for setting up a high-speed cartooning packaging line at manufacturing Unit II for Dry Powder Injections.
3. ₹1,200.00 Lakhs for prepayment or repayment of certain loans availed by the company.
4. The remaining funds will be used for general corporate purposes.

Onyx Biotec IPO Financial Performance

For FY 2024, Onyx Biotec reported revenue from operations of ₹5,387.43 Lakhs, an increase from ₹3,961.65 Lakhs in FY 2023. The EBITDA for FY 2024 was ₹840.77 Lakhs, compared to ₹459.25 Lakhs in FY 2023. The Profit After Tax (PAT) for FY 2024 was ₹303.16 Lakhs, up from ₹184.46 Lakhs in FY 2023.

For the Onyx Biotec IPO, the company is issuing shares at a pre-issue EPS of ₹2.54 and a post-issue EPS of ₹1.67. The pre-issue P/E ratio is 24.01x, while the post-issue P/E ratio stands at 36.52x, which is lower than the industry average P/E ratio of 75.10x. The company’s Return on Capital Employed (ROCE) for FY 2024 is 10.58%, and Return on Equity (RoE) is 12.19%, suggesting that the IPO is fairly priced compared to industry peers.

Onyx Biotec IPO Review

Despite the strong subscription and investor interest, the Grey Market Premium (GMP) for the Onyx Biotec IPO stands at ₹0, indicating no potential listing gains. While the company's financial performance and valuation suggest it is fairly priced, the lack of listing gains and the moderate returns relative to the industry average lead to a cautious recommendation for potential investors.

Investing in Onyx Biotec IPO

Retail investors interested in the Onyx Biotec IPO can apply through the ASBA (Application Supported by Blocked Amount) process, which is available through banks or online trading platforms. Investors need to ensure that they have a Demat account to receive allotted shares post-IPO.

For High-Net-Worth Individuals (HNIs), the investment requires purchasing a minimum of 2 lots (4,000 shares), which amounts to a total investment of ₹2,44,000. Given the 0% GMP and fairly priced nature of the IPO, investors should be aware that listing gains are unlikely, and a long-term approach may be more suitable for those considering Onyx Biotec as part of their portfolio.

In summary, the Onyx Biotec IPO offers an opportunity to invest in a pharmaceutical company with strong growth potential and strategic expansion plans, but investors should weigh the lack of listing gains and moderate financial metrics before deciding to participate.

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