Macleods Pharmaceuticals IPO

Macleods Pharmaceuticals Limited was founded in 1989 and are among the Country’s top (7th largest in the IPM for the six months ended September 30, 2021, relying on Domestic Sales (Source: IQVIA Dataset)) organically developed, vertically consolidated global pharmaceutical businesses. Macleods Pharmaceuticals IPO will hit the stock market in July 2022.

About Macleods Pharmaceuticals

Macleods Pharmaceuticals Limited is a pharmaceutical company that specialises in discovering, producing, and promoting anti-infectives, cardiovascular, anti-diabetic, dermatological, and hormone treatment formulations.

For the six months ended September 30, 2021, they were the seventh largest in the Indian pharmaceutical industry by domestic sales, and the second largest in the Covered Market (Source: IQVIA Dataset).

Their domestic business consists primarily of branded generics, and revenue from operations in India accounted for 51.73 percent of the overall revenue from operations in Fiscal 2021, the third highest proportion of domestic business across India’s nine major pharmaceutical businesses.

From Fiscal 2011 to Fiscal 2021, their domestic sales expanded at a CAGR of 15.3 percent, outpacing the IPM.

Products & Sales

They had the most WHO pre-qualified products in the world, with 65 registrations, and the most WHO pre-qualified anti-TB product registrations, with 32 registrations.

From 2017 to 2021, their chronic segment expanded at a CAGR of 12.9 percent, the second highest across their Peers, beating the chronic segment CAGR of 10.9 percent in the IPM over the same time, as measured by Domestic Sales.

As a result, the proportion of their total Domestic Sales from chronic therapies climbed from 29.0 percent in 2017 to 35.6 percent in 2021, and then to 36.5 percent in the six months ending September 30, 2021.

They were among the top ten businesses in the Covered Market for eight of the top ten therapies.

Brands

From Fiscal 2017 through Fiscal 2021, the IPM held a portfolio of 595 brands. We had two brands in the top 100 Indian brands and seven brands in the top 300 Indian brands primarily on domestic sales in Fiscal 2021.

They’ve also scaled new brands quickly, with Panderm++ topping $1 billion in domestic sales in Fiscal 2021 and ranking first in the molecular group of Clobetasol+Miconazole+Neomycin in the IPM, all within three years of the brand’s debut.

New products, such as Vildamac and Vildamac M, in established molecular groups of Vildagliptin and Vildagliptin+Metformin in the anti-diabetic market, have increased market share across non-innovator brands in the IPM in the last three fiscal years.

Macleods Pharmaceuticals IPO

Macleods Pharmaceuticals Limited, headquartered in Chennai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 60,482,040 equity shares on 15 February 2022.

The offer doesn’t includes any fresh issue and there is offer for sale (OFS) of 60,482,040 equity shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	6,615.86	5,734.74	9,573.39	7,568.87
Total Revenue	4,093.70	7,749.48	7,262.13	6,312.90
Profit After Tax	618.36	2,008.37	1,552.36	1,399.15

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	33.74	33.74	3
Financial Year 2020	26.18	26.18	2
Financial Year 2019	23.72	23.72	1
Weighted Average	29.55	29.55
30 Sep. 2021	10.56	10.56

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

We believe that some of the qualitative factors which form the basis for computing the Offer Price are as follows:

1. Leading and fast-growing company with significant presence in the IPM.
2. Proven track record of building brands.
3. Diversified presence across global markets with calibrated business model.
4. Environmental, social and governance focused, including extensive involvement in global access.
5. R&D-led differentiated portfolio of products.
6. Diversified and quality-compliant manufacturing capabilities.
7. Experienced, professional and stable management team.
8. Strong financial track record.

Macleods Pharmaceuticals Comparison

S. No.	Face Value	Company Name	PE
1	5	Torrent Pharmaceuticals Limited	35.11
2	2	Alkem Laboratories Limited	26.41
3	2	Cipla Limited	32.73
4	1	Sun Pharmaceutical Industries Limited	73.91
5	5	Dr. Reddy’s Laboratories Limited	37.25
6	2	Lupin Limited	30.18
7	1	Cadila Healthcare Limited	19.26
8	1	Eris Lifesciences Limited	26.76
9	2	Ipca Laboratories Limited	11.14

Note

The P/E Ratio was calculated using the NSE’s closing market price of equity shares on February 10, 2022.

Macleods Pharmaceuticals IPO Details

IPO Opening Date	July 2022
IPO Closing Date	July 2022
Issue Type	Book Building
Face Value	1 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	60,482,040 Equity Shares
Fresh Issue	0
Offer for Sale	60,482,040 Equity Shares

Macleods Pharmaceuticals IPO Date

Macleods IPO opening date is July 2022, and the closing date is July 2022. The Macleods Pharmaceuticals issue may list in July 2022.

IPO Opening Date	July 2022
IPO Closing Date	July 2022
Basis of Allotment Date	July 2022
Initiation of Refunds	July 2022
Credit of Shares to Demat Account	July 2022
IPO Listing Date	July 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

Macleods IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Macleods IPO.

Macleods Pharmaceuticals IPO GMP

Macleods IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
July 2022
July 2022
July 2022
July 2022
July 2022
July 2022
July 2022
July 2022
July 2022
July 2022
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Macleods IPO Review

Macleods IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Macleods Pharmaceuticals IPO is good or bad.

Macleods IPO Risk

1. They may face a shortage of raw materials, a rise in their prices, or a spike in other input expenses.
2. Their manufacturing or R&D operations may endure a material delay or halt.
3. Regulatory action, lawsuits, and other liabilities may be incurred as a result of their manufacturing activity.
4. They rely on a small number of markets to generate a large part of their revenue.
5. Their company, some of its subsidiaries, and a few of their promoters and directors are all entangled in legal matters.
6. They may be unable to acquire and maintain intellectual property rights for their trademarks, or to protect their confidential information in any other way.
7. They rely on a small number of therapeutic sectors for the majority of their revenue.

Other Threats

1. They are vulnerable to the COVID-19 pandemic’s uncertainty.
2. As part of our international company, they are exposed to additional risks connected with dealing with government institutions and global financing organisations.
3. They may be unable to put their business plan, expansion, or growth initiatives into action.
4. The pharmaceutical sector is fiercely competitive, and it is possible that they will be unable to respond appropriately to increasing competition.
5. They haven’t been able to track down some of their company’s records.
6. Some of their industrial facilities are in close proximity to one another in a certain area.
7. For the production of several of their products, they rely on third-party producers.
8. They might unwittingly infringe on other people’s patents.

Team

From their sales staff of over 4,900 medical professionals in India, they are present in all regions of the country. Domestic Sales per medical representative per month in India were 0.60, 0.68, 0.70, and 0.90 million in 2019, 2020, and 2021, and in the last six months respectively, thanks to their sales and distribution efforts.

This has helped them increase their Prescribers’ Share to 61.4 percent for the year ended September 30, 2021, a CAGR of 4.5 percent from the year ended September 30, 2017, compared to the IPM’s CAGR of 1.7 percent for the same time.

They have a strong presence in the IPM, with non-metro city domestic sales accounting for 80.0 percent of total domestic sales in 2021.

Macleods IPO Brokerage views

Here is the views of different stock brokers regarding this Macleods IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Macleods IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
July 2022	1
July 2022	2
July 2022	3

Management

Each of their Promoters has worked in the industry for a long time. They are in charge of a management team that has worked in the business before.

Their senior management is overseen by a board of directors made up of senior professionals with backgrounds in pharmaceuticals and business administration. They expand their market in over 170 countries using distinguishable business models for each of their key markets.

This allows them to take advantage of the unique characteristics of each market, such as the regulatory landscape, market size, competitive landscape, and product scope, while also reducing reliance on a single model, resulting in a profitable international business. They have a direct presence in more than 25 countries outside of India.

Principal Shareholders

• Girdharilal Bawri
• Banwarilal Bawri
• Dr. Rajendra Agarwal

Principal Shareholders’s Holding

Pre Issue Share Holding	34.07%
Post Issue Share Holding

Macleods Pharmaceuticals Prospectus