SPC Life Sciences IPO

SPC Life Sciences is a major producer of advanced intermediates for essential active pharmaceutical ingredients such as Pentoxifylline, Amiodarone HCL, Cilostazol, Trazodone, Tramadol, and Paroxetine in India (Source: F&S Report). SPC Life Sciences IPO will hit the stock market in September 2023.

About SPC Life Sciences

They are a chemical production company that focuses on long chain multi-stage reactions through research and development.

They manufacture advanced pharmaceutical intermediates (“Pharma Intermediates”) that are used in certain growing therapeutic areas such as cardiovascular, vasodilator (anti-platelet), anti-psychotic, and anti-depressants, with some of the products having a significant market share both in India and globally. (Source: F&S Report).

They may build Pharma Intermediates and cooperate with pharmaceutical companies looking for US FDA compliant manufacturing facilities as part of their supply chain because they have a US FDA approved facility for 6-Chloro-Hexane-2-One.

In Fiscal 2022, their company will be the world’s largest maker of 6-Chloro-Hexane-2-One (an intermediary for the cardiovascular (hemorheological) medication Pentoxifylline), with a 93% market share. (Source: F&S Report)

Products

They are the exclusive supplier of 2-N-Butyl-3-(3,5-Diiodo-4-Hydroxy Benzoyl) Benzofuran (a key structural component of Amiodarone HCL) and associated sub products in India, accounting for 20% of the global market in Fiscal 2022.

With a 13% global market share in 2022, their company is a maker of 2-Di Ethyl Amino Ethyl Chloride Hydrochloride (which is also a crucial structural component of Amiodarone HCL) (Source: F&S Report). Such intermediates produced by their company (and used in the production of Amiodarone HCL) are classified as import alternatives.

They are one of the primary makers of all important intermediates of the Central Nervous System anti-depressant, anti-psychotic medicine Trazodone globally, and were the second largest Indian supplier of two key intermediates of Trazodone in 2022.

Production Units

Their company operated four production blocks at a single facility in Ankleshwar, Gujarat, till February 2023. In March 2023, they opened the first phase of their new manufacturing site in Dahej, Gujarat, which includes an automated manufacturing block equipped with a programmable logic controller, as well as common utilities, storage facilities, a quality control lab, and administrative facilities (dubbed “Dahej Phase – 1” with Dahej Block-1).

Dahej Block – 1 will be dedicated to the production of pharmaceutical intermediates as well as specialized chemicals such as bromobenzene and NPBR.

In addition to pharmaceutical applications, bromobenzene and NPBR are used in agrochemicals and electronic cleaning. Furthermore, the Bromo Chloro Propane envisaged for production at Dahej Block -1 is classified as an import substitution.

SPC Life Sciences IPO

SPC Life Sciences Limited, headquartered in Vadodara has submitted Draft Red Herring Prospectus (DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 300 Crore & 8,938,870 equity shares on 27 March 2023.

The offer includes 300 Crore fresh issue and there is offer for sale (OFS) of 8,938,870 equity shares by the promoters mentioned in the DRHP. They are looking for Pre-IPO placement of 60 crore 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-22	31-Mar-22	31-Mar-21	31-Mar-20
Total Assets	169.42	138.07	102.82	77.91
Total Revenue	88.52	146.44	136.14	121.09
Profit After Tax	10.11	19.23	16.67	10.38

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	2.32	2.32	3
Financial Year 2021	3.73	3.73	2
Financial Year 2022	4.30	4.30	1
Weighted Average	3.78	3.78
30 Sep 2022	2.26	2.26

Objects of the Issue

• Repayment/prepayment of debt.
• General corporate objectives and organic growth.

Basis of the offer

SPC Life Sciences feel that the following business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:

• Pharma Intermediates and KSMs offering is strong and diverse, catering to growing therapeutic areas.
• Customer base is diverse, with long-standing partnerships spanning many geographies.
• Company focused on research and development, specializing in chemistries involving long chain multi-stage reactions.
• Due to the complex production process, extensive customer approval processes, and stringent regulatory standards, entry barriers are high.
• Priority should be given to quality, the environment, health, and safety.
• Strong sales and marketing skills.
• Strong corporate governance and an experienced executive team with a technocrat Promoter.

SPC Life Sciences Peer Comparison

S. No.	Face Value	Company Name	PE
1	5	Aarti Industries Limited	13.75
2	10	Ami Organics Limited	42.64
3	10	Neogen Chemicals Limited	68.80
4	10	Aether Industries Limited	91.60
5	10	Anupam Rasayan Limited	56.32
6	10	Tatva Chintan Limited	38.22

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2022, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the BSE on March 24, 2023 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2022.

SPC Life Sciences IPO Details

IPO Opening Date	September 2023
IPO Closing Date	September 2023
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	300 Crore & 8,938,870 equity shares
Fresh Issue	300 Crore
Offer for Sale	8,938,870 equity shares

SPC Life Sciences IPO Date

SPC Life Sciences Limited IPO opening date is September 2023, and the closing date is September 2023. The SPC Life Sciences issue may list in September 2023.

IPO Opening Date	September 2023
IPO Closing Date	September 2023
Basis of Allotment Date	September 2023
Initiation of Refunds	September 2023
Credit of Shares to Demat Account	September 2023
IPO Listing Date	September 2023

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

SPC Life Sciences 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 SPC Life Sciences IPO.

SPC Life Sciences IPO GMP

SPC Life Sciences Limited 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)
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

SPC Life Sciences Limited IPO Review

SPC Life Sciences Limited 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 SPC Life Sciences IPO is good or bad.

SPC Life Sciences IPO Risk

• They are subject to exact quality requirements, as well as regular inspections and audits by their clients, and any failure to comply with quality standards may result in the cancellation of existing and future orders, as well as an adverse effect on their business, reputation, financial condition, results of operations, and prospects.
• They face specific hazards as a result of their operations involving the production, use, and storage of numerous hazardous substances.
• They rely on the success of their customer connections. They earn a considerable portion of their revenue from important customers, with whom they do not have long-term commitments.
• They make a large portion of their money from a few goods, such as intermediates for pentoxifylline and amiodarone HCl.

Other Threats

1. SPC Life Sciences’s reliance on specific therapeutic areas for a major amount of their revenue could harm their business.
2. Noncompliance with, and changes in, safety, health, environmental, and labor laws, as well as other applicable rules, may have a negative impact on their business, financial situation, and operating results.
3. Their business is and will continue to be dependent on their production facilities, and they face significant risks in the manufacturing process.
4. They do not have long-term agreements with their raw material suppliers, and an increase in the cost of, or a shortage in the availability or quality of such raw materials, could have a negative impact on their business, financial condition, and results of operations, as well as their reputation.

APIs

Since their company’s inception in 2005, they have developed and commercialized over 50 Pharma Intermediates for APIs in 11 therapeutic areas, with a focus on R&D in select expanding areas such as cardiovascular (hemorheological), cardiovascular (anti-arrhythmic), vasodilator (anti-platelet), and anti-psychotic and anti depressants for use in the domestic and global pharmaceutical markets.

They feel that their emphasis on research and development, high regulatory requirements, quality systems, and continuous process improvement has positioned us as a long-term supplier to their clients.

As of the date of this Draft Red Herring Prospectus, they had been granted process patents in India and China for methyl methyl-3,4-dihydro-2H-pyran-3carboxylate, which is used in the production of Pentoxifylline (an API for the cardiovascular therapeutic segment).

SPC Life Sciences IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this SPC Life Sciences 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

SPC Life Sciences Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
September 2023	1
September 2023	2
September 2023	3

SPC Life Sciences Limited Management

They are led by a skilled & experienced Board of Directors, Key Management Personnel, and Senior Management, all of whom they feel have deep knowledge of the global generic pharmaceutical business environment, as well as the competence and vision to scale up their firm.

The majority of their Executive Directors have been with company since its inception. Snehal Ravjibhai Patel, their MD & Promoter, holds a master’s degree in business administration from Shivaji University in Kolhapur and has been with the Company since 2006.

He is active in company’s R&D initiatives, strategic business development, and project implementation. Ravjibhai Dudhabhai Dudhat, their full-time director, has a master’s degree in chemistry from Saurashtra University in Bhavnagar & has been with the company from its inception.

SPC Life Sciences Limited‘ Promoters

• Snehal Ravjibhai Patel

Promoters’s Holding

Pre Issue Share Holding	98.18%
Post Issue Share Holding

SPC Life Sciences Limited Prospectus