Amanta Healthcare, a sterile liquid pharmaceuticals manufacturer, is set to finalize its Initial Public Offering (IPO) allotment today following an impressive 82.60 times oversubscription. The Rs 126.00 crore IPO, which ran from September 1-3, garnered strong interest across investor categories.

Subscription Details

The IPO witnessed robust demand across all investor segments:

IPO Structure and Pricing

• Total offer size: Rs 126.00 crore
• Fresh shares issued: One crore
• Issue price: Rs 126.00 per share
• Anchor investor portion: Rs 38.00 crore (raised prior to public opening)

Grey Market Premium

The Grey Market Premium for Amanta Healthcare stands at Rs 9.00-10.00, representing a 7% premium over the issue price of Rs 126.00.

Key Dates

• Share credit to demat accounts: September 5
• Listing on BSE and NSE: September 8

Fund Utilization

The primary use of the IPO proceeds includes:

• Rs 100.00 crore allocated for capital expenditure to fund new sterile product manufacturing lines at Hariyala, Gujarat

Company Overview

Amanta Healthcare, incorporated in 1994, specializes in developing and manufacturing:

• IV fluids
• Diluents
• Ophthalmic solutions
• Respiratory care products
• Irrigation solutions

The company has a strong export presence, serving 21 countries across Africa, Latin America, and the UK.

Conclusion

The overwhelming response to Amanta Healthcare's IPO, particularly from non-institutional investors, reflects strong market confidence in the company's prospects. As the allotment finalizes today, investors will be keenly watching the stock's performance when it lists on the BSE and NSE on September 8.

Amanta Healthcare's Initial Public Offering (IPO) has garnered significant investor interest, with the Rs 126 crore issue oversubscribed 6.28 times on the second day of bidding. The strong demand has been accompanied by a notable grey market premium, indicating positive sentiment surrounding the Ahmedabad-based pharmaceutical company's public debut.

Subscription Details

The IPO has seen robust participation across investor categories:

• Retail Investors: Led the charge with an impressive 8.86 times subscription of their allocated shares.
• Non-Institutional Investors: Showed strong interest, subscribing 8.59 times their quota.
• Qualified Institutional Buyers: Displayed limited participation with a 4% subscription rate.

Grey Market Premium

Amanta Healthcare's shares are currently trading at a 12% premium in the grey market, above the upper price band of Rs 126. This premium suggests positive investor sentiment ahead of the official listing.

Company Overview

Amanta Healthcare specializes in sterile liquid formulations and medical devices. For the most recent financial period reported, the company achieved:

• Revenue: Rs 274.70 crore
• Profit After Tax: Rs 10.50 crore

IPO Details

Utilization of IPO Proceeds

The funds raised through the IPO will be primarily used for manufacturing expansion:

• Rs 70.00 crore allocated for the SteriPort line
• Rs 30.10 crore designated for a new SVP (Small Volume Parenterals) production line

Market Analysis

Investor4Edu has recommended subscribing to the IPO, noting that the stock is valued at 47 times post-issue earnings.

Investor Outlook

The strong oversubscription, particularly from retail and non-institutional investors, coupled with the grey market premium, suggests robust investor confidence in Amanta Healthcare's business model and growth prospects. However, the limited participation from qualified institutional buyers may warrant attention.

As the subscription window closes on September 3, all eyes will be on the final subscription figures and the anticipated listing on September 8. Investors and market watchers will be keen to see if the positive momentum carries through to the official market debut.