Onyx Biotec Limited is gearing up for its IPO, targeting to raise ₹29.34 crore through a fresh issue of equity shares priced between ₹58 and ₹61 each. Established in 2010, Onyx Biotec specializes in manufacturing sterile pharmaceutical products, including sterile water for injections and dry powder injections, catering to major pharmaceutical companies both domestically and internationally. The company operates two manufacturing facilities in Solan, Himachal Pradesh, with a substantial production capacity.
₹10
₹61
₹54.05
Expert Opinions
The Onyx Biotec IPO is generating positive market sentiment, driven by the company’s focus on sterile pharmaceutical products and its established reputation as a reliable supplier to major pharmaceutical firms. The company strengths include a solid financial track record, with revenues increasing from ₹39.62 crore in FY23 to ₹53.87 crore in FY24, alongside a consistent profit margin that reflects operational efficiency.
However, risks and challenges persist, including reliance on a limited product range and potential regulatory hurdles in the pharmaceutical industry. The valuation analysis indicates a reasonable price band of ₹58 to ₹61 per share, which positions the IPO attractively given its growth potential. From a long-term investment perspective, Onyx Biotec is well-positioned to benefit from the growing demand for high-quality pharmaceutical products in India, making it a compelling option for investors seeking exposure in the healthcare sector.
Investor Considerations
Investors considering the Onyx Biotec IPO should evaluate several important factors. The company performance and fundamentals are solid, with revenue growth from ₹39.62 crore in FY23 to ₹53.87 crore in FY24, alongside a profit increase to ₹3.03 crore, indicating operational efficiency and market demand. The sector outlook for pharmaceuticals is positive, driven by increasing healthcare needs and a growing emphasis on sterile products, particularly in the context of global health challenges.
The IPO valuation, set between ₹58 and ₹61 per share, appears attractive given the company’s growth trajectory and market position. Growth prospects are promising, as Onyx Biotec plans to expand its product offerings and enhance manufacturing capabilities to meet rising demand. However, potential risk factors include regulatory challenges and reliance on a limited product range. A long-term investment horizon is advisable, as Onyx Biotec is well-positioned to benefit from the expanding pharmaceutical market in India, making it an appealing option for growth-oriented investors.
| Date | GMP | Trend |
|---|---|---|
| 18 Nov 2024 11.05 | ₹10 | Down |
| 15 Nov 2024 11.30 | ₹15 | --- |
| 14 Nov 2024 12.46 | ₹15 | --- |
| 13 Nov 2024 12.13 | ₹15 | Up |
| 12 Nov 2024 10.23 | ₹10 | --- |
| 11 Nov 2024 16.52 | ₹10 | Up |
| 10 Nov 2024 12.42 | ₹5 | --- |
| 09 Nov 2024 11.15 | ₹5 | --- |
| 08 Nov 2024 13.07 | ₹5 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Onyx Biotec’s listing performance. While the GMP of ₹10 predicted a positive premium of 16.39% over the issue price, the stock actually listed at a significant discount of 11.39%. With a substantial prediction error of 23.87%, the GMP not only failed to predict the magnitude but also completely misread the direction of the listing movement, demonstrating its unreliability as a price predictor in this case.
Onyx Biotec IPO Current GMP is ₹10.
Onyx Biotec IPO Expected Returns is 16.39%.
Onyx Biotec IPO estimated listing price is ₹71.