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Onyx Biotec’s ₹29-Crore IPO Launches Nov 13 with Exciting Growth Plans

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Synopsis:

Onyx Biotec is launching a ₹29-crore IPO on November 13, offering a price range of ₹58-61 per share. The funds will support facility upgrades, debt repayment, and production enhancement for sterile products.

Onyx Biotec IPO news today

Onyx Biotec, a supplier of sterile products, will open its initial public offering (IPO) on November 13, aiming to raise ₹29 crore. With a price band set at ₹58-61 per share, the IPO will close on November 18. This offering consists of a fresh issue of 48.10 lakh shares, allowing the company to receive all net proceeds for its planned operational and financial improvements.

Also read: KPI Green Energy Board to Consider Second Bonus Share Issue in 2024

Key Takeaways:

  • Issue Size: ₹29 crore from 48.10 lakh shares at ₹58-61 per share.

  • IPO Date: November 13-18; trading on NSE SME from November 22.

  • Funds Allocation: Manufacturing upgrade, debt repayment, packaging setup, and corporate expenses.

  • Retail Investor Limit: Minimum bid of 2,000 shares (₹1.22 lakh) with a ₹2 lakh max cap.

Funds Allocation and Business Expansion

The net proceeds from the Onyx Biotec IPO will support several key initiatives. Of the funds raised, ₹6.08 crore will enhance the existing sterile water production facilities, allowing for the manufacture of large-volume parenteral for intravenous use. Additionally, ₹1.24 crore is earmarked for a high-speed cartooning packaging line, increasing efficiency for dry powder injections. To strengthen its financial position, Onyx Biotec plans to allocate ₹12 crore from the IPO to reduce its debt, which stood at ₹29.09 crore as of May 2024. The remaining funds will cover general corporate needs.

Also read: NMDC Announces 2:1 Bonus Share Issue Amid 18% Q2 Profit Growth

Allocation Purpose

Amount (₹ crore)

Manufacturing Upgrade

6.08

Packaging Line Setup

1.24

Debt Repayment

12.00

General Corporate Purposes

Remaining Funds

Company Profile and Clientele

Onyx Biotec, based in Punjab, operates two manufacturing facilities in Himachal Pradesh and specialises in sterile water for injections. The company is also a contract manufacturer for pharmaceutical companies, providing dry powder injections and dry syrup. Onyx’s client list includes leading pharma firms such as Hetero Healthcare, Sun Pharma, Mankind Pharma, and Macleods Pharmaceuticals, highlighting its established industry relationships.

Also read: Alembic Pharma Gains USFDA Approval for Generic Hypertension Drug

Retail Investment Details

Retail investors can subscribe to a minimum of 2,000 shares, equivalent to ₹1.22 lakh, with a maximum investment cap of ₹2 lakh. The IPO anchor book opens on November 12, a day before the public offering. Horizon Management will act as the lead manager, and MAS Services will be the IPO’s registrar.

Onyx Biotec’s IPO aims to raise capital for facility upgrades, debt reduction, and increased production efficiency. With trading set to commence on November 22 on the NSE SME, the Onyx Biotec IPO presents an opportunity for investors in the rapidly expanding sterile products market.

Also read: SIP Inflows Cross ₹25,000 Crore Mark for First Time in October

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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