IPO listed on 9 Sep'25
Amanta Healthcare Ltd
Minimum Investment
₹ 14,994 / 119 shares
Issue price
₹ 126
Listing price
₹ 135
Listing day %
13%
Listing on
Sep 9, 2025
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- Amanta Healthcare Ltd (AHL) has demonstrated solid growth in its bottom line, but its revenue and EBITDA growth remain relatively modest. The company’s IPO is backed by a robust business model, improving profitability and promising expansion plans that could fuel future growth.
- However, concerns such as high debt levels, regulatory risks and premium valuations, along with the additional risks outlined below, need careful consideration.
- From a valuation perspective, the IPO appears to be fully priced, with a Price-to-Earnings (PE) multiple of 34x based on FY25 earnings.
- Given the overall demand for the IPO, investors looking for listing gains may consider subscribing to the IPO. However, for those with a longer-term investment horizon, it would be wise to wait for a couple of quarters to assess the company’s execution and financial performance before making an investment.
About the company
Founded in
21 Dec'94
Managing director
Bhavesh Patel
- AHL specializes in the manufacturing and marketing of sterile liquid pharmaceutical products. Its core product portfolio includes IV fluids, diluents, ophthalmic solutions, irrigation solutions, eye lubricants and respiratory care products. The firm utilizes advanced manufacturing technologies, such as Aseptic Blow-Fill-Seal (ABFS) and Injection Stretch Blow Moulding (ISBM), to ensure the highest quality standards.
- AHL operates through three key business units: (i) Domestic Sales – Reaching over 320 distributors across India; (ii) International Sales – Present in 19 registered countries globally; and (iii) Product Partnering – Collaborating with both Indian and international pharmaceutical companies. In FY25, AHL exported branded products to 21 countries.
STRENGTHS
- Financial Performance: AHL achieved modest growth from FY23 to FY25, with a 3% CAGR in operating revenue and a 4% CAGR in EBITDA. Profitability, however, saw a remarkable turnaround, moving from a loss of Rs 2.11 crore in FY23 to a profit of Rs 3.63 crore in FY24, which further surged to Rs 10.50 crore in FY25.
- Improving Return Ratios: Return metrics showed significant improvement, with Return on Equity (RoE) increasing from 5.27% in FY24 to 12.42% in FY25 and Return on Capital Employed (RoCE) rising from 12.76% to 13.72%.
- Operational Efficiency: EBITDA margin improved from 21.43% in FY23 to 22.11% in FY25, while net profit margin turned positive, improving from -0.82% to 3.86%. This reflects enhanced operational efficiency and profitability.
RISK FACTORS
- Modest Revenue Growth: Revenue has seen only marginal growth, increasing from Rs 259 crore in FY23 to Rs 275 crore in FY25, indicating limited business expansion.
- Single-Site Dependency: AHL operates solely from one manufacturing facility in Kheda, Gujarat, making it vulnerable to localized operational disruptions, regulatory changes or natural calamities. The previous suspension of the company's manufacturing license underscores potential operational risks. Any future suspensions could disrupt business activities and affect performance.
- High Finance Costs: Finance costs have consistently consumed a significant portion of EBITDA, accounting for 45.78% in FY25, which impacts both profitability and financial stability.
- Legal Risks: AHL is currently involved in legal and regulatory proceedings amounting to Rs 14.76 crore. Any unfavorable outcomes could have a material adverse effect on business, financial condition, cash flows, and results of operations.
- Contingent Liabilities: As of March 31, 2025, contingent liabilities stood at Rs 11.58 crore, nearly 110% of FY25's net profit, presenting a significant potential financial risk.
- Pledged Shares by Promoter: Bhavesh Patel, one of the promoters, has pledged 61,36,328 and 88,265 equity shares on September 13, 2024, and December 16, 2024, respectively, totaling 21.59% of the company’s equity share capital.
- High Debt-to-Equity Ratio: AHL’s high debt-to-equity ratio indicates substantial outstanding debt and financial obligations. Any inability to meet financial commitments could limit its ability to operate effectively and negatively impact business, financial condition and future prospects.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 126 crore
Fresh Issue
₹ 126 crore
OFS
₹ -
Price range
₹ 120 - 126
Lot size
119 shares
Issue Objective
The net proceeds from the fresh issue will be used for the following purposes:
- To fund capex for civil construction and purchase of equipment, plant and machinery for a new SteriPort manufacturing line at Hariyala, Gujarat.
- To fund capex for civil construction, equipment, plant and machinery for a new SVP manufacturing line at Hariyala, Gujarat; and
- For general corporate purposes.
Dates
Bidding open
1 Sep'25
Bidding close
3 Sep'25
Allotment date
4 Sep'25
Refund date
8 Sep'25
Listing
9 Sep'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.