Sotac Pharmaceuticals SME IPO: Check Day 1 subscription status and GMP signal

The Sotac Pharmaceuticals Initial Public Offering (IPO) consists of 3,000,000 equity shares with a face value of Rs. 10, totaling up to Rs. 33.30 Crores. The minimum order size is 1200 shares, and the issue is priced between 105 and 111 per share. On March 29, 2023, the SME IPO officially began. It will end on April 3, 2023. The proposed listing of the shares on NSE SME is being managed by KFin Technologies Ltd, the IPO’s registrar. The proposed date for Sotac Pharmaceuticals’ IPO listing is April 13, 2023, while the official date has not yet been declared. According to the schedule provided in the red-herring brochure, the Sotac Pharmaceuticals IPO allotment status will be reachable on April 10, 2023.

HNIs and NIIs are permitted to bid for a minimum of 2 lots of 2,400 shares, representing an outlay of 266,400. According to the rules of the offer, qualified institutional buyers (QIBs) will receive 50% of the net offer, HNI/NII investors would receive 15%, and retail investors will receive the remaining 10% of the issue. Sotac Pharmaceuticals’ initial public offering was subscribed 0.02 times. By March 29, 2023, the public issue had received 0.05 times as many subscriptions in the retail category and 0.00 times in the NII category. On Day 1 of the offering, there were 51,600 shares total bid for the retail category vs 9,98,400 shares offered. Although there were 4,28,400 shares offered as opposed to 0 total shares bid for the NII category.

The latest IPO GMP today for Sotac Pharmaceuticals is 6, and it was updated on March 30 at 05:41 PM. Presuming a price range of Rs. 111, the expected listing price for the Sotac Pharmaceuticals SME IPO is Rs. 117 (cap price + today’s GMP). Hence, the likely listing premium is being notified as per the GMP signal at 5.41%.

Commenting on Sotac Pharmaceuticals IPO, A R Ramachandran, Co-founder & Trainer – Tips2trades said “Extreme uncertainty in profitability over the past 3 years coupled with a very high debt-equity ratio makes Sotac Pharmaceuticals a risky buy. Investors are advised to wait for listing and can re-enter at lower levels.”

For the first half of FY23, Sotac Pharma reported consolidated revenue of 40 crore, compared to 73 crore for FY22 and 49 crore for FY21. Its consolidated EBITDA for the first half of FY23 was 4 crore, compared to 6 crore for FY22 and 1 crore for FY21. Its net profit for the first half of FY23 was Rs. 47 lakh, compared to Rs. 3 crore for FY22.

Sotac Pharmaceuticals Ltd, a 2015 incorporation, is a subsidiary of theGujarat-based SOTAC group. The corporation makes pharmaceutical products as its line of work. Currently, SOTAC offers contract pharmaceutical production to over 162 institutional and corporate clients. In addition to its present capacity of 14 core capsules per year, it can currently produce 90 crore tablets annually. Sotac now operates in 25 states and has a network of 500 retailers, 10,000 prescribers, and more than 500,000 retail locations. It has a presence all over the world, including in the USA, Ghana, Kenya, Mauritius, Yemen, and the Philippines.

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