Eris Lifesciences IPO

Eris Lifesciences IPO

Eris Lifesciences IPO

Eris Lifesciences Logo

Eris Lifesciences develops, manufactures and commercializes branded pharmaceutical products in select therapeutic areas within the chronic and acute categories of the IPM, such as: cardiovascular; anti-diabetics; vitamins; gastroenterology; and anti-infectives. Its focus has been on developing products in the chronic and acute category which are linked to lifestyle related disorders. The chronic category of the IPM contributed 64.2% of its revenues in Fiscal 2016 and 65.4% of its revenues for the six months ended September 30, 2016.

The company was ranked 21st out of 353 domestic and multinational companies present in the chronic category of the IPM, in terms of revenues for Fiscal 2016. It was the fastest growing company, in the chronic category, among the top 25 companies in terms of revenues, with revenue growth at CAGR of 33.9%, between Fiscals 2012 and 2016. The company generated 35.8% in Fiscal 2016 and 34.6% for the six months ended September 30, 2016, of its revenues from the acute category of the IPM. Its revenues from the acute category grew at a CAGR of 20.1% between Fiscals 2012 and 2016.

Eris Lifesciences’ product portfolio comprised of 56 mother brand groups as of March 31, 2016, not including its acquisitions. The product portfolio is primarily focused on therapeutic areas which require the intervention of specialists and super specialists such as cardiologists, diabetologists, endocrinologists and gastroenterologists.

Sales in metro cities and class 1 towns, together accounted for 75.7% of its revenues in Fiscal 2016 and 77.6% for the six months ended September 30, 2016, as a majority of specialists and super specialists are based in these metro cities and class 1 towns. Between Fiscals 2012 and 2016, there has been an increase in the number of doctors prescribing its products from 24,606 (constituting 9.3% of doctors in metro cities and class 1 towns in India) to 49,476 (constituting 16.0% of doctors in metro cities and class 1 towns in India) and also increase its share in prescriptions from 0.9% to 1.2% over the same period.

Promoters of Eris Lifesciences: Amit Indubhushan Bakshi, Himanshu Jayantbhai Shah, Inderjeet Singh Negi, Rajendrakumar Rambhai Patel and Kaushal Kamlesh Shah

Eris Lifesciences IPO details
Subscription Dates16 - 20 June 2017
Price BandINR600 - 603 per share
Fresh issueNil
Offer For Sale28,875,000 shares (INR1,741.16 crore at the upper band)
Total IPO size28,875,000 shares (INR1,741.16 crore at the upper band)
Minimum bid (lot size)24 shares
Face Value INR1 per share
Retail Allocation10%
Listing OnNSE, BSE

Eris Lifesciences' consolidated financial performance (in INR crore)

FY2012FY2013FY2014FY2015FY2016FY2017
Total revenue273.9393.0508.8545.5597.0724.9
Total expenses215.4307.2409.9424.1425.5456.3
Profit after tax36.958.270.889.2133.6242.0

Eris Lifesciences Contact Details

Eris Lifesciences Ltd
21, New York Tower A, Thaltej Cross Road,
Ahmedabad - 380 054

Phone: +91 79 4890 3474
Fax: +91 79 4890 3474
Email: [email protected]
Website: www.eris.co.in

Registrar OF Eris Lifesciences IPO

Link Intime India Private Limited
C-13 Pannalal Silk Mills Compound,
LBS Marg, Bhandup (W), Mumbai – 400 078
Maharashtra, India

Phone: +91 22 2596 3838
Fax: +91 22 2594 6969
Email: [email protected]
Website: http://www.linkintime.co.in

VALUATION OF Eris Lifesciences IPO (BASED ON LATEST FY)

Earnings Per Share (EPS): INR17.61

Price/Earnings (P/E) ratio: 34.07 - 34.24

Return on Net Worth (RONW): 44.84%

Net Asset Value (NAV): INR39.27 per share

Eris Lifesciences IPO Subscription Details

CategoryShares offeredSubscription (No. of times, at 6 PM) 
Day 1Day 2Day 3
QIB8,617,5000.060.814.68
NII4,308,7500.020.030.45
Retail2,872,5000.411.673.48
Employee150,0000.000.330.86
Total28,875,0000.11 0.753.28

Eris Lifesciences IPO Allotment Status

Eris Lifesciences IPO allotment status is now available on Link Intime’s website. Click on this link to get allotment status.

LISTING PERFORMANCE OF Eris Lifesciences IPO

IPO Opening Date: 16 June 2017

IPO Closing Date: 20 June 2017

Finalisation of Basis of Allotment: 23 June 2017

Initiation of refunds: 27 June 2017

Transfer of shares to demat accounts: 28 June 2017

Listing Date: 29 June 2017

Listing Price on NSE: INR611 per share (up 1.3% from IPO price)

Closing Price on NSE: INR601.5 per share (down marginally from IPO price)

16 COMMENTS

  1. Very poor listing! This company had priced the IPO to perfection, nothing left for investors.

    I said it earlier too Sun Pharma has given better returns instead of this IPO.

    • Book profits and go home, enjoy. This should be the strategy. Stock markets are waiting for correction, long due now and these highflyers will suffer the most.

  2. I’m confused about investing in Eris. Business looks good, price looks bad. Even more confused after reading the research reports. Business great, price not that great!!!

  3. Avoid. The profit of 3/2017 is inflated. Huge rise in 3/2016 to 3/2017 profits. Making retail investers look like fools. It is to be seen after 1 year of listing. Be patience in stock market, if it is good, market will give you chance to buy at lower levels.

  4. Are you serious you guys want to buy EL at 25-30x fwd multiple – +ves are 1. high margins 2. no debt 3. good growth – topline 5yr cagr of 16% / opat -37% – better than top10 pharma – but i think 1800cr raise and all to buyout earlier investors is not a good deal. Pharma is major Underweight right now – rather buy SunPharma / Auro /Lupin at <20x and forget about it for 3yrs than buy Eris at 30x and then lose 20% – GMP is 70-80bucks which just ensure the full thing gets subscribed. I will say that it is like Alkem and A.Enzymes, the company is focused on domestic business so the risk of FDA reg and US pricing pressure is much less – but all in all – in 1months time the stock will trade in the 500-550 range

  5. bhai log whatz the GMP in Eris? I think it will be a blockbuster IPO. Must apply kind of issue. Don’t look at price, just see how Advanced Enzymes became rocxket after listing…

  6. Retail Outlet allocated : 10%. If go to this IPO will allotted? What is basis of allotment to retail investor? Can anyone please give reply…

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