IPO Update : Nectar Lifesciences Ltd.

Nectar Lifesciences Ltd. has come in to the orimary markets with an offer of Public issue of up to 38.70 Lacs equity shares .The issue would constitute 26% of the fully diluted post issue paid-up capital of the company. The company has put the price band of Rs.200-240

Looking into the company :

Chandigarh-based Nectar Lifesciences Ltd. (NecLife) earlier known as Surya Medicare Ltd. is amongst the largest manufacturer and exporter of Cephalosporins and Semi Synthetic Penicillins in India.

The Cephalosporins drug segment is growing at a rapid pace and is the largest selling therapeutic segment in India. The company has aggresive plans to maintain its leadership position in this segment.

The company is also venturing into the Non-Antibiotic segment. The drugs to be produced under this segment belong to the category of Cardiovascular (CVS) / Anti-Histamine Therapeutic Segments. They are realtively new drugs and have huge growth potential.

The issue proceeds will be used to set up a new formulation plants at Baddi and derabassi & invest in Research and development activities.

The company has earned an EPS of Rs.20 for the year 2004-05 which converts into a P/E of 12 at the higher price band.

The company has sizeable debtors on its balance sheet which is around 25%of its sales.

Investment Guru recommends Investors to apply in the IPO. The valuations at the offer price looks reasonable in the current market scenario and leaves some scope for the listing gains. However, Investors should not keep their hopes too high with the listing gains. This is also an opportunity for those who wish to hold on for a long term to enter at the IPO levels.

Issue Opens : 22-June-2005
Issue Closes : 28-June-2005
Listing : BSE & NSE


Anonymous said...

Good job rajesh. I read your provogue and nectar ipo posts.
Keep them comin!!

Anonymous said...

Thanks for the update Rajesh. It was really useful in making up my mind. How much upside do you see in nectar IPO.
Also would be grateful if you can give your views on Era cons. IPO. I am a little doubtful about this.

Anonymous said...

Soni bhai,
You are great.
Please keep up your good work.
I am karthik from nasik and read your blog daily.

Narendra Kumar said...

Why didn't you post views on Jindal Poly IPO!?
I invested in it. But, the stock is below the upper band price today!
Looks like it is going the PNB way.
Please give me your views on this and the way to reduce the loss.....


Rajesh Soni said...

Hi All,
Thanks for all you kind words of appreciation for the blog. I asure you that this blog will continue to be useful to you for the times to come.
Wish you ll Happy Investing!

Rajesh Soni said...

Hi Narendra
Though I didn't put any post on Jindal poly, I am sure I answered some query on this in the comment section and cautioned visitors that it may go PNB way.

Rajesh Soni said...

Hi Hitesh,
yes, you are absolutely right. I encourage all the viewers to actively participate on this blog.
It's your blog and all of you are equally responsible to make it a success that all of us can benefit.
I am planning to start a programme on this blog where I will post the write-ups from the visitors on the BLOG ! SO gear up and be ready to participate!


Anonymous said...

Hi Rajesh,
Thanks for the update on Nectar Life Science. Pls advise on other issues like Era Construction,SPL Industries etc.