Eris Lifesciences Limited – IPO

Gujarat (Ahmedabad) based pharmaceutical company “Eris Lifesciences Limited” is planning to raise Rs. 1741 crore through an initial public offering (IPO).

Eris Lifesciences IPO will not raise any money for the company and all the shares sold in the IPO will be offered by existing shareholders. In total, 28,875,000 shares will be offered in Eris Lifesciences IPO.

Company Background

Started in the year 2007, Eris Lifesciences is engaged in research, development, manufacturing, and selling of select therapeutic areas within the acute and chronic categories of the Indian Pharmaceutical Market.

Working Area

• Eris product portfolio is primarily focused on therapeutic areas which require the intervention of super specialist and specialist doctors such as Cardiologists, Diabetologists, Endocrinologists, and Gastroenterologists.
• Eris products in the chronic category cater primarily to the therapeutic areas including anti-diabetics and neurology, cardiovascular, chronic respiratory and chronic pain (analgesics).
• In the acute category, the product portfolio includes anti-infectives, acute pain (analgesics), cute respiratory, dermatology, gastroenterology, gynaecology, hepatoprotectives, hormones, hematology, vitamins, anti-obesity products and products for injury healing.

Manufacturing Facility & Sales Team

• Eris Lifesciences own and operate a manufacturing facility in Guwahati, Assam.
• The company outsources the manufacturing of certain of its products to 20 manufacturers. Eris strong sales team comprised of 1,310 marketing representatives.

Company Promoters

The company is promoted by

1. Amit Indubhushan Bakshi
2. Himanshu Jayantbhai Shah
3. Inderjeet Singh Negi
4. Rajendrakumar Rambhai Patel
5. Kaushal Kamlesh Shah

IPO Details

IPO Date & Listing

Financial Performance

Revenue –

The company has registered steady revenue growth in last five years. Topline has been increasing regularly for these years and jumped from INR 286 crore in FY2012 to INR 623 crore for the year ended March 2016.

Profit –

Though the company has shown superb growth in revenue, the company has also registered impressive profits in these years. Starting from INR 43 crore of profit in FY2012, the company’s profitability improved to INR 138 crore in FY2016.

Margin –

The company has registered impressive net profit margin in these years starting from 13.5% in FY2012 to 22.4% in FY2016 and still counting.

CONCLUSION –

Considering company’s valuation, financial parameters and long-term perspective FinBlab recommends SUBSCRIBE ratings on this issue.

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