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Embark on an exciting journey with Hamps Bio Limited, a pharmaceutical distribution company ready to make its mark on the investment landscape. With a strategic public offering valued at ₹6.22 crores, Hamps Bio Limited is opening its doors to visionary investors from December 13 to 17, 2024. Priced at an attractive ₹51 per share, this IPO offers multiple entry points for investors of different scales. Retail investors can step in with a minimum investment of ₹102,000 for one lot of 2,000 shares, while High Net-worth Individuals can dive deeper with a minimum subscription of ₹204,000.

Your investment timeline is crystal clear: share allotment notifications will be sent on December 18, 2024, with the company making its debut on the BSE SME platform on December 20, 2024. This is more than an investment—it's your chance to support a dynamic player in pharmaceutical distribution, potentially riding the wave of healthcare innovation.

Hamps Bio IPO Details

Hamps Bio IPO is a fundraise worth ₹6.22 crores comprising purely of a fresh issue of 12.2 lakh shares with 62,000 shares reserved for the market maker Pure Broking Private Limited. The IPO will be available for subscription from December 13, 2024, to December 17, 2024, providing an opportunity for investors looking to gain a stake in the pharma space.

Hamps Bio IPO DateDecember 13, 2024 - December 17, 2024
Issue TypeFixed Price Issue IPO
Fixed Price₹51 per share
Face Value₹10 per share
Lot Size2000 shares
Fresh Issue Size1,220,000 shares worth ₹6.22 crores
Total Issue Size1,220,000 shares worth ₹6.22 crores
Listing atBSE SME
Market Maker Portion62,000 - Pure Broking Pvt Ltd
Share Holding Post Issue4,356,000
Share Holding Pre Issue3,136,000

Hamps Bio IPO Timeline

The Hamps Bio IPO opens for subscription on December 13, 2024, and closes on December 17, 2024, with allotment scheduled  for December 18, 2024.

IPO Open DateDecember 13, 2024 (Friday)
IPO Close DateDecember 17, 2024 (Tuesday)
Basis of AllotmentDecember 18, 2024 (Wednesday)
Initiation of RefundsDecember 19, 2024 (Thursday)
Credit of Shares to Demat AccountDecember 19, 2024 (Thursday)
Listing Date on BSE SMEDecember 20, 2024 (Friday)
Cut-off Time for UPI Mandate Confirmation5 PM on December 17, 2024 (Tuesday)

Hamps Bio IPO Review

Hamps Bio Limited, incorporated in 2007, is a pharmaceutical and FMCG company that specializes in marketing and distributing a diverse range of products. The company operates through two primary segments: pharmaceuticals and freeze-dried and frozen products. In the pharmaceutical division, they market products under the "Hamps" brand, offering tablets, syrups, capsules, injectables, and powders. Their product portfolio is extensive, with over 180 products spanning both segments, and they distribute these through a robust network of more than 50 distributors and e-commerce platforms including Amazon, Flipkart, and Jio Mart.

The company's reach is impressive, with pharmaceutical products currently sold in 8 states and union territories, while their freeze-dried and frozen products under the "FzyEzy" brand extend to 6 countries and 22 states and union territories. Operating through both B2B and B2C models, Hamps Bio Limited offers a variety of freeze-dried and frozen items such as Strawberry, Jamun, Mango, Beet Powder, and Chikoo powder. This versatility in product offerings and distribution channels demonstrates the company's adaptability and commitment to serving diverse market needs. As of October 31, 2024, the company maintains a lean and focused workforce of 78 employees to support its wide-ranging business operations.

Hamps Bio Limited plans to strategically allocate its proceeds across three key areas: first, investing in plant and machinery for its FMCG division to support operational growth and production capabilities; second, focusing on brand visibility and awareness initiatives to strengthen market presence and customer recognition; and third, addressing general corporate purposes.

Hamps Bio IPO Financials

Hamps Bio Limited reportedly saw an annual rise of 16.41% in its revenue and 39.47% yearly increase in the Profit After Tax (PAT), during the financial year ended March 31, 2024.

As of March 31, 2024, the key performance indicators reflect the company's financial health with Return on Equity (RoE) of 21.14%, a Return on Capital Employed (RoCE) at 18.31% and a Debt-to-Equity ratio of 0.31. The Return on Net-Worth (RoNW) stands at 14.84%, and the PAT Margin was 7.73%. The Price to Book Value was 2.96. The company’s market capitalisation is ₹22.22 crore.

Period EndedOctober 31, 2024March 31, 2024March 31, 2023March 31, 2022
Revenue436.42650.13558.49534.46
Assets644.00514.77395.87364.31
Net Worth370.78337.42136.30100.57
Profit After Tax34.0850.0735.9012.15
Reserves & Surplus57.18141.42-13.70-49.43
Total Borrowing138.31104.52173.77204.31

Amount in ₹ crores

The pre-IPO EPS is at ₹1.6 while the post-IPO EPS will be ₹1.34. Similarly, the pre-IPO Price to Earnings ratio is 31.94 and will become 38.03 post-IPO.

Hamps Bio IPO strengths

Hamps Bio Limited demonstrates robust capabilities through its expert leadership and strategic business approach. The company boasts an expansive distribution network with a strong e-retailing presence across 50+ distributors and major platforms like Amazon and Flipkart. Its diverse product portfolio is particularly impressive, offering over 180 products across pharmaceuticals and FMCG segments that cater to both domestic and international markets. The organization has cultivated a wide geographical presence and a diversified global customer base, which provides significant market opportunities and long-standing customer relationships.

Hamps Bio IPO weaknesses

The company faces several notable operational challenges, primarily stemming from its manufacturing and supply chain structure. It heavily depends on third-party manufacturers, with the top 10 contract manufacturers contributing 41.03% of purchases as of October 2024. The concentration of its manufacturing facility for freeze-dried and frozen products in a single region (Ankleshwar, Gujarat) exposes the company to significant operational risks. Additional vulnerabilities include potential disruptions from failure to renew licenses, ongoing litigation, lack of long-term manufacturing agreements, and dependence on a few suppliers for raw materials. These factors could potentially impact the company's business continuity, financial performance, and future growth prospects.

Should you invest in the Hamps Bio IPO?

Being among the early public investors in Hamps Bio Limited could present an opportunity to participate in the company's growth trajectory in the distribution and marketing of pharmaceutical products. Hamps Bio Limited offers visionary investors an opportunity to be part of something truly impactful, but success demands more than just enthusiasm. Before you leap, become the savvy investor who looks beneath the surface. Dive deep into the company's operational blueprint, financial vitals, and growth strategy, understanding how their distribution model creates value and aligns with your unique investment goals. This isn't just about buying shares; it's about strategically positioning yourself in a critical healthcare sector. Review the offer document, consult a trusted financial advisor, and align this opportunity with your personal investment strategy. Your informed decision today could be the prescription for financial wellness tomorrow! 

FAQs

What is the Hamps Bio IPO?

The Hamps Bio Limited IPO is an BSE SME offering consisting of 1,220,000 equity shares with a face value of ₹10, aiming to raise to ₹6.22 crore. The fixed price has been set as ₹51 per share, with a minimum order quantity of 2000 shares. This IPO will be open for subscription from December 13, 2024, to December 17, 2024. Marwadi Chandarana Intermediaries Brokers Private Limited is the book-running lead manager, Bigshare Services Private Limited is the registrar while Pure Broking Private Limited is the market maker.

When will the Hamps Bio IPO open?

The Hamps Bio IPO will open for subscription on December 13, 2024, and will close on December 17, 2024.

When is the Hamps Bio IPO listing date?

The tentative listing date for the Hamps Bio IPO is Friday, December 20, 2024.