Sotac Pharmaceuticals IPO

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

Know before investing

Strengths

1. The company manufactures and markets products under its brand name, which includes tablets, capsules, and syrups in the domestic and international markets.

2. The promoters have a combined experience of 59 years.

3. It operates in a scalable business model.

Risks

1. The promoter group and group of Companies are involved in certain litigations and claims.

2. It relies on a few customers to generate revenue.

3. It is dependent on external suppliers for raw materials.