Established in 2005, Onyx Biotec Limited specialises in the pharmaceutical sector, focusing on sterile water for injections and contract manufacturing. The company produces Dry Powder Injections and Dry Syrups, catering to both domestic and international markets.
The Onyx Biotec IPO is a book-built issue valued at ₹29.34 crore, offering a fresh issue of 48.1 lakh shares. This IPO is open for subscription from November 13 to November 18, 2024. Investors can expect the allotment to be finalised on November 19, with shares likely listing on the NSE SME on November 21, 2024.
The IPO price band is set between ₹58 to ₹61 per share, with a minimum application lot size of 2,000 shares, translating to an initial investment of ₹1,22,000 for retail investors. For high-net-worth individuals (HNIs), a minimum of two lots (4,000 shares) is required, amounting to ₹2,44,000.
Horizon Management Private Limited serves as the book-running lead manager, while Mas Services Limited is the registrar for the IPO. Giriraj Stock Broking is the designated market maker.
Industry Outlook:
- The Indian pharmaceutical industry, valued at approximately USD 50 billion, is projected to grow significantly, reaching USD 130 billion by 2030 and USD 450 billion by 2047. This growth is driven by expanding domestic demand and robust export performance, with India meeting 20% of global generic drug exports.
- The Indian healthcare sector, including hospitals and biotech, is also set to expand rapidly. The healthcare industry is projected to surpass USD 610 billion by 2026, fueled by rising medical tourism and demand for cost-effective treatments, boosting India’s reputation as the "Pharmacy of the World."
- The government’s initiative to expand the medical devices industry, aiming to increase its market size from USD 11 billion to USD 50 billion by 2030, underscores the sector's growth potential and commitment to global leadership in healthcare.
Onyx Biotec IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funds will be used to enhance Unit I for the production of large-volume injectables for intravenous use.
- Proceeds will finance a high-speed cartooning packaging line at Unit II to improve packaging efficiency for Dry Powder Injections, increasing productivity and output.
- A portion of funds will go towards prepayment or repayment of existing loans.
- The remaining funds will be allocated towards general corporate purposes.
About Onyx Biotec Limited
Onyx Biotec Limited, established on May 13, 2005, began its journey in the pharmaceutical industry, initially offering sterile water for injections. Over the years, it has grown into a trusted supplier of sterile pharmaceutical products, catering to major pharmaceutical companies across India. The company became a public limited entity in 2024, enhancing its operational reach and brand presence under the name Onyx Biotec Limited.
Operating from two manufacturing facilities in Himachal Pradesh, Onyx Biotec has established a strong production capacity with Unit I producing up to 6,38,889 units of sterile water for injections daily and Unit II manufacturing 40,000 dry powder injections and 26,667 dry syrup units per day. Both facilities are WHO-GMP certified and equipped with modern equipment to ensure high-quality, sustainable manufacturing practices.
Onyx Biotec prioritises rigorous quality control and assurance, employing in-house laboratories to test raw materials and finished products at every stage. The company's quality management system upholds global FDA and GMP standards, guaranteeing products meet stringent quality and safety requirements.
With a dedicated team of trained professionals, Onyx Biotec focuses on delivering reliable, cost-effective pharmaceutical solutions to its clients. Known for its commitment to quality and innovation, the company has gained the trust of numerous clients by maintaining high standards and offering end-to-end product development and regulatory support for both domestic and international markets.
Peer Details
According to RHP, The following are the listed peers of Onyx Biotec Limited:
- Suven Pharma Limited
- JB Chemicals Limited
How to Check the Allotment Status of the Onyx Biotec IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How to apply for Onyx Biotec IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Onyx Biotec IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Onyx Biotec IPO
- Registered office: Bir Plassi Near Sainimajraropar, Nalagarh Road, District Solan –174 101, Himachal Pradesh, India
- Phone: +91 172 2656384
- E-mail: generalinfo@onyxbiotec.com
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 5,374.88 | 3,949.19 |
| Profit/(Loss) after tax (in ₹ lakh) | 303.16 | 184.46 |
| Earnings per Share (EPS) (₹) | 2.54 | 1.56 |
| Net Worth (in ₹ lakh) | 2,487.87 | 1,820.16 |
| EBITDA (in ₹ lakh) | 828.22 | 446.79 |
| Return on net worth (RONW) (%) | 12.19 | 10.13 |
| Total Borrowing (in ₹ lakh) | 3,078.04 | 2,922.83 |
| Return on Capital employed (ROCE) (%) | 10.58 | 6.29 |
Know before investing
Strengths
6Strong brand reputation enhances Onyx Biotec's client trust and goodwill.
Diverse sterile product range strengthens Onyx Biotec's market presence.
Broad geographical reach supports Onyx Biotec's expansive customer base.
Rigorous quality control boosts Onyx Biotec's client confidence and reliability.
Experienced management team drives Onyx Biotec's strategic growth initiatives.
Contract manufacturing for top pharma clients expands Onyx Biotec's reach.
Risks
6High dependency on Solan, Himachal Pradesh, increases vulnerability to regional risks.
Natural disasters or political changes could disrupt the company’s Solan operations.
Manufacturing disruptions from machinery breakdowns or resource issues can affect revenues.
Delayed raw material supplies may harm production timelines and revenue.
Loss of key clients can impact revenue and financial stability.
Dependence on the pharmaceutical sector exposes the company to industry demand fluctuations.
