Sterile products supplier Onyx Biotec will open its Rs 29-crore initial public offering for subscription on November 13, with a price band at Rs 58-61 per share. The issue will close on November 18.
The IPO consists solely of a fresh issue of 48.10 lakh shares worth Rs 29.34 crore at the upper price band. Thus, the net issue proceeds (excluding offer expenses) will be received by the company.
The Punjab-based company that manufactures sterile water for injections will spend Rs 6.08 crore out of net IPO proceeds for the upgradation of its existing manufacturing to manufacture large volume parentals for intravenous use, which will be sold under the Onyx brand name to pharma companies, distributors, stockist and hospitals.
Further, it also intends to utilise Rs 1.24 crore to set up a high-speed cartooning packaging line at existing manufacturing for dry powder injections, while it will repay the debt of Rs 12 crore through issue proceeds. The remaining IPO money will be used for general corporate purposes. Its total borrowings stood at Rs 29.09 crore as of May 2024.
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With two manufacturing facilities in Himachal Pradesh, Onyx Biotec also acts as a pharmaceutical contract manufacturer offering dry powder injections and dry syrup.
It holds longstanding relationships with several clients in the pharmaceutical industry including Hetero Healthcare, Mankind Pharma, Sun Pharmaceutical Industries, Aristo Pharmaceuticals, Macleods Pharmaceuticals, Mapra Laboratories, Axa Parenterals, FDC, Zuventus Healthcare, Akums Drugs and Pharmaceuticals among others.
Retail investors can bid for a minimum and maximum of 2,000 equity shares, which amounts to Rs 1.22 lakh, as they can not exceed the investment limit of Rs 2 lakh in an IPO.
Also read: SME IPOs: Small town stars steal the spotlight from big cities
The anchor book of the IPO will be launched for a day on November 12. Investors can start trading in Onyx Biotec shares on the NSE SME effective November 22.
Horizon Management is acting as the book-running lead manager to the issue, while MAS Services is the registrar to the offer.
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