Cian Healthcare IPO Closing 9th May: Should you invest?

The 400 lakhs Cian healthcare IPO of has already hit the market on Thursday. On the block, there is a fresh issue of 6,21,6000 shares of the face value Rs 10.

The promoters of the company include Suraj Zanwar and Kavita Zanwar. The lead manager of the issue includes Fedex Securities Private Limited and the registrar to this issue is Big Share Services Private Limited.

Cian Healthcare Ltd – Profile

Cian Healthcare Limited company is engaged in manufacturing a wide array of Pharmaceutical, Nutraceutical, Ayurvedic, sexual wellness and food supplement products. The company has its own F&D center and it has its own regulatory department. The company develops, manufactures, and commercializes pharmaceutical products including sales, marketing, quality assurance, distribution under 12 different categories like Gynecology, Pediatrics, Diabetes, Pain Management and Dermatology.

Should you Invest?

In the year 2015-16 to FY 2017-18, as per the financial statements the company has registered total revenue as mentioned in FY 2018, 2017, 2016 was Rs 5959.34 lakhs, Rs. 5185.36 lakhs and Rs. 4715. 62 lakhs, respectively. The net worth as recorded on September 30, 2018 was Rs 2226.84 lakhs and Rs. 1716.81 lakhs as of Mar 31, 2018 as per the consolidated financial statement. The net asset value per equity share as on March 30,2018 is Rs 122.63. The company has recorded net profit after tax in FY 2018, 2017 and 2016 was Rs 387.35 lakhs, Rs. 231.28 lakhs and Rs. 154.71 lakhs.

(in INR & lakhs)
Particulars	30-Sept-18	31-Mar-18	31-Mar-17	31-Mar-16
Total Assets	8,112.21	7,762.47	6,127.82	5,681.81
Total Revenue	3,301.45	5,959.34	5,185.36	4,715.62
Total Expense	2,780.56	5,446.33	4,877.47	4,499.60
Profit After Tax	520.89	513.01	307.89	216.02

Earnings per Equity Share (in millions)	30-Sept-18	31-Mar-18	31-Mar-17	31-Mar-16
Basic	28.44	27.67	16.52	15.45
Diluted	7.93	27.67	16.52	15.45

Cian Healthcare IPO Details

The face value of the share is Rs 10, and the price band of the IPO is in between Rs 61-65, The initial public offering is of 62,16,000 shares of face value of Rs 10 aggregating to Rs 400 lakhs. O

Issue Open	May 2 – May 9, 2019
Issue Price	Rs 61 – Rs 65 per Equity Share
Market Lot	2000 Shares
Issue Size	6,216,000 Eq Shares of Rs 10 (up to Rs 40.00 Cr)
Face Value	Rs 10 per Equity Share
Listing At	BSE SME

The objectives of the issue are

• To fund the working capital requirements of the company
• To expand its manufacturing operations by installing factory at Roorkee and Uttarakhand
• To upgrade the existing plant and to spend money on brand building activities
• For further acquisitions and strategic initiatives.

Should you invest?

There are several reasons that make this IPO worth investing is it has diversified business portfolio, strong financial records, strong management team, a wide array of products, strong formulation and development capabilities.