Claris Lifesciences Ltd, a Rs.740 crore
plus pharma company from Ahmedabad, is entering the capital market with
an Initial Public Offer (IPO) of equity shares of Rs.10 each with a price band between Rs.278 and Rs.293 per share through book building process aggregating to Rs.300
crore on November 24, 2010. The shares will be listed on Bombay Stock
Exchange. The 60 per cent of the issue will be allotted to Qualified
Institutional Buyers (QIBs).
Claris is one of the largest Indian
sterile injectables pharmaceutical companies with a presence in 76
countries worldwide. It products offering comprise 128 products across
multiple markets and therapeutic areas. All of its products are
off-patent products, a significant majority of which are capable of
being directly injected into the body and are predominantly used in the
treatment of critical illnesses. The company is providing products
mainly in the therapeutic segments, including anaesthesia, critical
care, anti-infectives, renal care, infusion therapy, parenteral
nutrition and oncology. The customer base primarily includes government
and private hospitals, aid agencies and nursing homes.
Its key
product, propofol, represented approximately 14.84 per cent of its total
sales for the financial year ended December 2009. During the first five
months ended May 2010, sales of propofol amounted to 12.5 per cent of
the total sales. The company obtained over 1,100 registrations worldwide
and approximately 324 applications were pending approval as at the end
of September 2010.
For the five months ended May 2010, the company achieved sales of Rs.324.95 crore and earned a net profit of Rs.57.73 crore. Its international business accounted for 61.2 per cent at Rs.198.96 crore. For the full year ended December 2009 its total sales amounted to Rs.743.53 crore as compared to Rs.752.16 crore in the previous year. Its net profit, however, increased to Rs.124.89 crore from Rs.107.90 crore.
Out of the total funds raised through IPO, Claris is spending Rs.131.58
crore on setting up of a new plant comprising a small volume
parenterals line, a PVC bag line, a non-PVC bag line and a fat emulsion
line, Rs.26.47 crore for setting up a new
manufacturing line for propofol and other fat emulsion products at
existing plant Clarion IV and Rs.38.41 crore for setting up a new facility for research and development. Further, it is planning to make pre-payment of loan of Rs.45.91 crore.
Arjun
Handa, managing director and CEO, said, “Our products range across
various therapeutic segments and we offer injectables in various
delivery systems. We have established presence and offer a large product
portfolio in emerging markets. We also have a presence in certain
regulated markets and one of our key growth strategies going forward is
to further expand our distribution network and product offerings in
markets such as the US, Europe, Australia, New Zealand, Canada and South
Africa. Claris has filed 280 applications for product registrations in
regulated markets up to September 30, 2010.”
Rating agency Fitch
Rating India Pvt Ltd has accorded “IPO grade 3/5' to the issue of
indicating average fundamentals. Enam Securities Pvt Ltd, Edelweiss
Capital Ltd, JM Financial Consultants Pvt Ltd and ICICI Securities Ltd
are the Book Running Lead Managers to the issue.