Onyx Biotec Ltd. is a leading pharmaceutical company established in 2009, specializing in generic and proprietary pharmaceutical products. The company offers a range of pharmaceutical forms, including Water for Injection (WFI), Dry Powder Injections, and Dry Powder Syrups, catering to both domestic and international markets.

Onyx Biotec is launching a Fixed Price IPO amounting to ₹29.34 Crores, consisting of 48.1 lakh fresh issue shares. The subscription period for the Onyx Biotec IPO opens on November 13, 2024, and closes on November 18, 2024. The allotment of shares is expected to be finalized on November 19, 2024, with the shares listing on NSE SME on November 21, 2024.

Share Price and Investment Details:

The price band for the Onyx Biotec IPO is set at ₹58 to ₹61 per equity share, with a market capitalization of ₹110.60 Crores at the upper price band. The lot size is 2,000 shares, and retail investors are required to invest a minimum of ₹1,22,000. For High-Net-Worth Individuals (HNIs), the minimum investment is 2 lots (₹2,44,000).

Horizon Management Private Limited is the book-running lead manager for the IPO, while MAS SERVICES LIMITED is the registrar. Giriraj Stock Broking Private Limited serves as the market maker.

IPO Subscription and Allotment Status:

As of November 13, 2024, at 5:00 PM, the Onyx Biotec IPO was subscribed 2.80 times on the first day of the subscription period. The Grey Market Premium (GMP) for the IPO is ₹0, indicating no significant premium based on the company's financials.

Onyx Biotec has raised ₹8.33 Crore from Anchor Investors at ₹61 per share, with 13,66,000 equity shares allocated to them.

Objectives of the IPO:

The proceeds from the Onyx Biotec IPO will be utilized for:

1. ₹607.70 Lakhs for upgrading the existing manufacturing unit to produce large volume parentals for intravenous use.
2. ₹124.05 Lakhs for setting up a high-speed cartooning packaging line at another manufacturing unit.
3. ₹1,200.00 Lakhs for the prepayment or repayment of certain loans availed by the company.
4. General Corporate Purposes.

Financial Performance:

For the fiscal years 2024, 2023, and 2022, Onyx Biotec reported:

• Revenue: ₹5,387.43 Lakhs (FY24), ₹3,961.65 Lakhs (FY23), ₹4,498.09 Lakhs (FY22)
• EBITDA: ₹840.77 Lakhs (FY24), ₹459.25 Lakhs (FY23), ₹575.79 Lakhs (FY22)
• Profit after Tax (PAT): ₹303.16 Lakhs (FY24), ₹184.46 Lakhs (FY23), ₹335.29 Lakhs (FY22)

The company's P/E ratio at the upper price band is 36.52x, which is lower than the industry average of 75.10x, indicating the IPO is fairly priced. The Return on Capital Employed (ROCE) for FY24 is 10.58%, while the Return on Equity (RoE) is 12.19%.

IPO Review:

Despite the company’s steady financial growth and relatively fair pricing, the Grey Market Premium of ₹0 and the valuation metrics suggest limited upside potential for listing gains. Therefore, we recommend investors to avoid the Onyx Biotec IPO for both short-term listing gains and long-term investments.

The Upcoming IPOs in this week and coming weeks are Rosmerta Digital, NTPC Green, Avanse Financial and Nisus Finance.

The Current active IPO are  Mangal Compusolution, Black Buck, and Onyx Biotec.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.