Remus Pharmaceuticals Limited IPO – May 17th -19th ,2023 –SME IPO

Remus Pharmaceuticals Limited was incorporated on 21^st September, 2015 and focuses on marketing, distributing and exporting top-of-the-line complex generics certified by regulatory authorities.

Products

The product offerings of the company can be classified into two major categories:

• APIs: Active Pharmaceutical Ingredient (API) is the biologically active component of a drug product (tablet, capsule, cream, injectable) that produces the intended effects.
• Finished Pharmaceutical Formulations: These are therapeutic drugs available in different dosage forms. They include capsules, cream, eye drops, gel, inhaler, injection, nail lacquer, nasal solution, nasal spray, nebuliser, ointment, ophthalmic, oral gel, oral solution and tables. 

Business Model

Remus focuses on marketing, distributing and exporting complex generics certified by regulatory authorities. As on January 31, 2023, the company has business to business supply agreements with 58 domestic distributors and 139 international distributors for distribution and/or contract manufacturing supply.

The company’s business can be divided in following categories:

a) Manufacturing, through loan license or on contract manufacturing basis, of approved finished formulations and distribution of the same in various countries.

b) Trading of Active Pharmaceutical Ingredients

c) Technical Consultancy on preparation of reports on pharmaceutical dossiers

As on the date of this Draft Red Herring Prospectus the company had 30 active loan license contract manufacturing facilities.

IPO details

IPO subscription dates: May 17 to May 19, 2023

Price: Rs. 1150 - 1229 per share

Lot size: 100 shares (i.e., Rs. 1,15,000 to Rs. 1,22,900)

IPO Objective

• To meet working capital requirements which is INR 3030.36 lakhs
• Funding investments for acquisitions and general corporate purposes
• To meet Public Issue Expenses

Company Financials

Strengths

• Wide range of products - product portfolio consists of 429 products.
• Strategic Location of Contract Manufacturing Facilities - 30 active loan licensed manufacturing facilities situated in Gujarat.
• Diversified business operations and revenue base – They have exports of Formulation to countries like Bhutan, Bolivia, Chile, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Kuwait, Madagascar, Malaysia, Hong Kong, Myanmar, Panama, Trinidad and Tobago, Uzbekistan, Venezuela, Vietnam.

Major Business-Related Risk

• The company’s business is dependent on limited customers and a remarkable reduction in purchases or the loss of customers could impact the business adversely.
• There is a heavy dependency on a few suppliers for raw materials, so any delays could have a cascading impact on the business.
• There are outstanding legal proceedings involving the Company, Promoters and Directors.
• Their registered office, corporate office and warehouse, from where they operate are not owned by them.
• Given the industry nature, there is heavy dependency on approvals from relevant regulatory and health authorities.
• They’ve availed INR 719.64 lakhs as unsecured loan as on December 31, 2022, which are repayable on demand.
• High working capital could affect the company adversely.

How to apply for a Quick IPO on ICICIdirect?

• Select IPO

Go to the IPO section, select the IPO you want to apply for from the list, and click on ‘Apply’.

• Fill in the required details

Fill in the number of shares you want to buy. To apply at maximum price, check the cut-off price box and amount is auto-calculated. If you want to apply at some other price within the price band, then you can enter the price manually by clicking on the “Add bid” option.

• Confirm your request

Click on proceed to confirm the order. You can view the placed order under “Order book”. If you are applying using UPI, check the A/C and UPI details before clicking on proceed. You will get a UPI link through which the payment can be made.