Amkay Products IPO Issue was Subscribed Over 32 Times on Day 1- Check the Day 2 Subscription Status and Other Details
Amkay Products, a provider of healthcare products, started its initial public offering (IPO) on Tuesday, April 30. On the first day of subscription, 5,35,40,000 applications were received for the SME issue, out of the 16,42,000 shares issued.
The company's leadership stems from its promoters, Kashyap Pravin Mody and Himanshu Kantilal Batavia, who have been instrumental in steering the company towards success. Their pre-IPO holding was a substantial 99.89%, which post-IPO has adjusted to 73.44%. This change reflects their commitment to growth and the trust they place in their shareholders.
Amkay Products Limited has its roots in Thane, Maharashtra, where it began its journey with a rented manufacturing unit in Vasai. Over the years, the company has expanded its footprint, moving to larger manufacturing units to accommodate the growing product line and market demand. This expansion is a testament to the company's dedication to innovation and customer satisfaction.
The business started with the aim of addressing a gap in the market for medical products that met high standards of quality while being accessible to a broader audience. Amkay Products Limited began operations in 2008, initially focusing on a single product. The company's portfolio quickly grew, adding more products and eventually branching into branding and trading alongside manufacturing.
Today, Amkay Products Limited boasts a diverse product range that includes nebulizers, blood pressure monitors, surgical masks, and more. The company's products cater to hospitals, clinics, and various healthcare institutions across India and beyond. With a strong dealer network and a commitment to quality, Amkay Products Limited continues to be a trusted name in the healthcare industry.
The company's ethos revolves around timely delivery, maintaining product standards, and ensuring customer satisfaction. These principles have guided Amkay Products Limited from its inception and continue to be the driving force behind its operations.
For the financial year ending on March 31, 2023, the company reported an operating revenue in the range of INR 1 crore to 100 crores. The net worth of Amkay Products Limited saw a decrease of 1.68%, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 4.38%. The total assets of the company decreased by 9.73%, and liabilities decreased by 19.70%. The company's debt-to-equity ratio stood at 0.67, with a return on equity of 21.01%. The current ratio, which measures the company's ability to pay short-term obligations, was at 2.08, indicating a healthy short-term financial position. The profit after tax (PAT) for the period ending December 31, 2023, was reported at INR 215.34 lakhs. This is an increase from the previous year's PAT of INR 151.02 lakhs, indicating an improvement in profitability. The company's net worth as of December 31, 2023, was INR 986.96 lakhs, and the total borrowings were INR 476.22 lakhs. The revenue from manufacturing operations for the period ending December 31, 2023, was INR 1836.91 lakhs, while revenue from branding and trading operations was INR 437.71 lakhs.
Amkay Products Limited's financial performance shows a mixed trend with some areas of growth and some areas of decline.
Amkay Products IPO Subscription Status
The Amkay Products IPO has been subscribed over 91.35 times on Day 2 that is today.
The retail category, subscribed 140.22 times, received 10,68,48,000 shares against offered 7,62,000 applications. Meanwhile, the QIB portion received a mild response and was subscribed 0.9 times. The QIB category received 40,000 applications against the 4,34,000 shares offered.
On the other hand, Non-Institutional Investors (NII) received 3,21,40,000 shares against offered 4,46,000 shares. The NII portion is subscribed 98.59 times on the second day of bidding till IST 11:56.
Competitors of Amkay Products Limited
While the information available on Amkay Products Limited's specific competitors is limited, here's what we can explore to understand the competitive landscape:
Based on Amkay's Product Range:
Amkay deals in various healthcare and homecare products including:
Surgical disposables (masks, syringes, etc.)
Nebulizers
Blood pressure monitors
Thermometers
Adult diapers
Hot water bags
This indicates Amkay competes in several sub-segments of the Indian healthcare and homecare market. Here's how to identify competitors for each segment:
Online Research: Search for leading manufacturers and distributors of each product category Amkay offers. Look for companies with a strong online presence and established distribution networks.
Industry Associations: India has associations for medical devices and home healthcare products. These associations often have member directories that can be a good starting point.
Market Research Reports: Reports on the Indian healthcare and homecare market might provide insights into major players.
Examples of Potential Competitors:
Surgical Disposables: Hindustan Unilever Limited (through brand 'Lifebouy'), 3M India Ltd., etc.
Nebulizers: OMRON Healthcare India Pvt. Ltd., Philips India Ltd., etc.
Blood Pressure Monitors: Dr. Reddy's Laboratories Ltd. (through brand 'Omron'), Omron Healthcare India Pvt. Ltd., etc.
Thermometers: Honeywell International Inc. (through brand 'TempAssure'), Vega Instruments Pvt. Ltd., etc.
Adult Diapers: Unicharm India Pvt. Ltd. (through brand 'MamyPoko Pants'), The Himalaya Drug Company, etc.
Hot Water Bags: Usha International Ltd., Relaxo Footcare Pvt. Ltd., etc.
Additional Considerations:
Distribution Channels: Amkay's distribution strategy (online vs offline) will determine which competitors they face most frequently.
Brand Recognition: Established brands with strong brand recognition might be Amkay's biggest competitors, especially for non-essential products.
Price Point: Depending on Amkay's pricing strategy (budget-friendly vs premium), they might compete with different companies in each segment.
Conclusion
In conclusion, the Amkay Products Limited IPO presents a unique opportunity for investors to participate in the healthcare sector, specifically in the medical device market. While the company has demonstrated a capacity for growth and expansion, as evidenced by its diversified product portfolio and increased manufacturing capabilities, it also faces challenges in a highly competitive and potentially saturated market. The financial analysis indicates a mixed performance with fluctuating revenues and profitability, yet an overall positive trend in equity and assets. Investors should weigh these factors alongside the company's strategic investments in machinery and working capital, which could position Amkay Products for future success. As with any investment, potential investors should conduct thorough research and consider their financial goals and risk tolerance before participating in the IPO.
Please Read the Detailed Review Here.
Disclaimer: This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing securities, that suit your needs. The performance and returns of any equity stock can neither be predicted nor guaranteed.
FAQs
Q: What is an IPO?
An Initial Public Offering (IPO) is the first time a company offers its shares for sale to the public on a stock exchange. This allows the company to raise capital for growth and expansion.
Q: How can I apply for an IPO?
There are two main ways to apply for an IPO:
Retail Investor: You can apply through your trading broker using a Demat account and ASBA facility (explained below).
Institutional Investor: Large investors like banks and mutual funds have a separate application process.
Q: What is ASBA?
ASBA (Application Supported by Blocked Amount) is a safe and convenient method to apply for IPOs. With ASBA, the funds you bid for the IPO are blocked in your bank account and only debited if your bid is successful. This prevents unsuccessful applicants' money from being tied up.
Q: What is the difference between a fixed-price and a book-building IPO?
Fixed-Price IPO: The company sets a fixed price for the shares offered in the IPO.
Book-Building IPO: The price of the shares is determined based on investor demand during a bidding process.
Q: What are the risks involved in investing in IPOs?
New companies: IPOs often involve young companies with limited track records, so there's a higher risk of their stock price being volatile.
Overvaluation: Some IPOs can be overvalued, leading to a potential drop in share price after listing.
Q: How much should I invest in an IPO?
IPO investments should be a part of a diversified portfolio. Only invest what you can afford to lose, considering the inherent risks involved.
Q: What happens after I apply for an IPO?
The company allocates shares based on the bids received. You will be notified if your application is successful or not. The shares will then be credited to your Demat account after the listing date.
Q: When should I sell my IPO shares?
This is a personal decision based on your investment goals and risk tolerance. Some investors hold for the long term, while others may sell soon after listing to capture potential gains.
Q: Where can I find information about upcoming IPOs?
Many financial websites and brokerage firms provide information on upcoming IPOs, including issue details, timelines, and prospectuses.
Q: What are the tax implications of investing in IPOs?
Short-term capital gains tax applies to IPO shares sold within one year of purchase. Long-term capital gains tax applies if held for over a year, and the rates may vary depending on the country's tax regulations.