Sotac Pharmaceuticals of the Sotac Group manufactures pharmaceutical products for clients on a loan license and contract manufacturing basis. As of date, they have 162 corporate clients.
The company was incorporated in 2015 and set up a manufacturing unit in Ahmedabad, Gujarat, in 2017. The manufacturing unit has an annual installed capacity of ₹90 crore tables and ₹14 crore capsules.
The company has two primary lines of business:
- Pharmaceutical products - Non-beta Lactam capsules, tablets, and syrups.
- Therapeutic portfolio - Anti-diabetic, Antipsychotic, Vitamins, Minerals, Iron, Anti-cold, Anti-allergic, Derma products, Antacids etc.
Cadila Pharma, J.B. Chemical, Lincoln Pharma, Viatris (Mylan), Makers (IPCA), Corona remedies, Eris Life Science etc. are a few prominent clients of Sotac pharmaceuticals.
The bidding window of Sotac Pharmaceuticals IPO worth ₹33.30 Cr will open on March 29, 2023, and close on April 03, 2023. The IPO size contains 3,000,000 equity shares with a face value of ₹10. The price band for the book-building IPO is fixed at ₹105-111 per share.
Sotac Pharmaceuticals Ltd. IPO Objective
- Investing in subsidiary and construction/upgradation of new/existing buildings in the current premises
- Meeting capital expenditure requirements and general corporate purposes
- Meet issue expenses
Should you invest in Sotac Pharmaceuticals Ltd.?
These are the top reasons to consider investing in Sotac Pharmaceutical Ltd.
- The company serves a wide spectrum of companies for formulation development, clinical batch production, and commercial-scale production.
- The brand has a presence in 14 Indian states and has started direct export to distributors in the international market under the vertical of direct selling.
- It markets 34 products manufactured under its brand name in the offshore market and 14 in the USA market.
Sotac Pharmaceuticals Ltd. Noteworthy highlights
- It has permission to produce 329 products under one licence and 45 under a licence from the Food and Drug Department.
- It featured among the ‘Top 10 Pharma Contract Manufacturers in India’ by Indian Pharma Outlook in 2022.
Sotac Pharmaceuticals Company Financials
| Particulars | 6 months ending in September 30,2022 | Year ending on March 31, 2022 (₹ lakh) |
|---|---|---|
| Revenue from Operations | 3,974.83 | 7,314.17 |
| Profit After Tax (PAT) (consolidated) | 46.55 | 287.86 |
| PAT Margin | 9.98% | 4.61% |
| EBITDA | 534.44 | 613.52 |
| EBITDA % | 17.32% | 8.36% |
| Period Ended | As on March 31, 2022 | As on March 31, 2021 |
| Current Asset | 2,727.32 | 1,332.70 |
| Current Liability | 2,118.78 | 1,094.97 |
Know before investing
Strengths
3The company manufactures and markets products under its brand name, which includes tablets, capsules, and syrups in the domestic and international markets.
The promoters have a combined experience of 59 years.
It operates in a scalable business model.
Risks
3The promoter group and group of Companies are involved in certain litigations and claims.
It relies on a few customers to generate revenue.
It is dependent on external suppliers for raw materials.
