Saroja Pharma to launch IPO on Aug 31, aims to raise Rs 9.11 crore

Saroja Pharma Industries India, a distributor of pharmaceutical products based in Mumbai, will initiate its initial public offering on August 31.

The price per share has been fixed at Rs 84. The promotion will end on September 5.

The company intends to raise Rs 9.11 crore from a new issue of 10,84,800 equity shares totaling 10,84,800. There will be reserved 54,400 equity shares worth Rs 45.69 lakh for the market maker.

The total offering will represent 26,98% of the post-issue paid-up equity. The company has reserved 50 percent of the net issue of 10,30,400 shares, or 5,15,200 shares, for retail investors and the remaining 50 percent for high-net-worth individuals whose application value exceeds Rs 2 lakh.

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Investors are permitted to submit bids for a minimum of 1,600 equity shares and in multiples of 1,600 shares thereafter. Consequently, retail investors can only deposit Rs 1,34,400 in a single lot, as their IPO application size is restricted to Rs 2 lakh.

Saroja Pharma, which intends to enter API manufacturing, will use the proceeds of the offering to establish an API (active pharmaceutical ingredient) manufacturing facility (Rs 7.05 crore) and repay Rs 1.75 crore in debts. The remaining Rs 31,35 lakh will be allocated to issue costs.

The company is primarily employed in the pharmaceutical business, which includes the marketing, trading, and third-party distribution of a vast array of pharmaceutical formulations and products manufactured under contract. It has a presence in Pakistan, the United Kingdom, Jordan, Singapore, Belarus, Uruguay, Australia, Germany, Egypt, the Netherlands, Ireland, and Kenya, among other nations.

The distributor of pharmaceuticals intends to produce cost-effective anthelmintics for human tropical and veterinary use. Therefore, it is constructing a manufacturing unit in Nashik, Maharashtra, at a cost of Rs 23 crore.

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As per the IPO schedule, the listing of shares will take place on NSE's emerge platform on September 13.

Swastika Investmart is the underwriter for the offering, while Kfin Technologies is the registrar.