Amanta Healthcare IPO opens with 22% GMP: Should you bid?
What's the story
Amanta Healthcare, an Ahmedabad-based pharmaceutical company, has opened its ₹126 crore initial public offering (IPO) for subscription today. The company has set a price band of ₹120-126 per share for the offer, which will close on Wednesday. The entire IPO is a fresh issue of one crore shares and is expected to be listed on BSE and NSE on September 8.
Market prospects
Strong gray market performance
In the gray market, Amanta Healthcare is trading at a 22% premium over its upper price band, indicating potential listing gains. The company specializes in sterile injectables, IV fluids, ophthalmic solutions, respiratory care products, irrigation solutions and medical devices. It has a strong domestic presence with over 320 distributors and stockists while also exporting to Africa, Latin America and the UK among other emerging markets.
Financial overview
Financials and use of proceeds
Amanta Healthcare's consolidated revenue for FY25 stood at ₹274.7 crore, a slight decline from ₹280.3 crore in FY24. However, its profit after tax saw a significant jump to ₹10.5 crore in FY25 from ₹3.6 crore in FY24. The company plans to use ₹70 crore of the proceeds for expanding its SteriPort manufacturing line and another ₹30 crore for setting up a new line for SVPs (small volume parenterals).
Investment advice
'Subscribe' rating assigned by Investor4Edu
Investor4Edu has recommended subscribing to the IPO, given the company's strong position in the growing sterile liquid pharmaceuticals and medical devices market. At the upper price band, Amanta Healthcare is valued at about 47 times post-issue FY25 earnings, making it appear fully priced. With certifications across 120 jurisdictions and a wide product portfolio focused on sterile pharma, Amanta Healthcare is well-positioned for growth.