Hamps Bio IPO: Should You Invest in This Pharmaceutical Pioneer?

The Hamps Bio IPO is creating buzz as it opens for subscription from December 13, 2024, to December 17, 2024. With a fixed price of ₹51 per share, this SME IPO provides an opportunity for investors to gain exposure to a unique pharmaceutical and FMCG business. In this blog, we delve into the IPO details, company profile, financial performance, and key investment insights.

Hamps Bio IPO Details

Here’s a snapshot of the IPO details to help you make an informed decision:

  • IPO Opening Date: December 13, 2024
  • IPO Closing Date: December 17, 2024
  • Listing Date: December 20, 2024
  • Issue Price: ₹51 per share
  • Face Value: ₹10 per share
  • Lot Size: 2,000 shares
  • Issue Size: ₹6.22 Cr
  • Total Shares Issued: 1,220,000
  • Market Maker Portion: 62,000 shares
  • Issue Type: Fixed Price Issue IPO
  • Listing At: BSE SME

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Lot Size and Investment Details

The minimum investment for retail investors is ₹1,02,000, with the option to bid for multiples of 2,000 shares. Below is the investment structure:

Investor CategoryLotsSharesInvestment Amount
Retail (Min)12,000₹1,02,000
Retail (Max)12,000₹1,02,000
HNI (Min)24,000₹2,04,000

About Hamps Bio

Established in 2007, Hamps Bio Limited has carved a niche in the pharmaceutical and FMCG sectors. The company specializes in the marketing and distribution of pharmaceutical products, offering a wide array of products including:

  • Tablets, Syrups, Capsules, Injectables, Oils, Gels, and Powders
  • Freeze-Dried and Frozen Products such as fruits, vegetables, herbs, and flowers via its FMCG division

The dual focus on medicinal and nutritional supplements positions Hamps Bio as a key player in meeting diverse consumer needs.

Promoters and Shareholding

The promoters of Hamps Bio include:

  • Herrik Shah
  • Shrenik Shah
  • Pallavi Shah
  • Mitali Shah
  • Herrik Shah HUF
  • Shrenik Shah HUF
ShareholdingPre-IPOPost-IPO
Promoters100.00%71.99%

The IPO will dilute the promoters’ shareholding, providing a broader investor base and raising funds for business expansion.

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Hamps Bio Financial Performance

The financials of Hamps Bio showcase consistent growth across key metrics:

Revenue (in Rs. Cr)

  • 2022: ₹5.34
  • 2023: ₹5.58
  • 2024: ₹6.47

Profit (in Rs. Cr)

  • 2022: ₹0.12
  • 2023: ₹0.36
  • 2024: ₹0.50

Total Assets (in Rs. Cr)

  • 2022: ₹3.64
  • 2023: ₹3.96
  • 2024: ₹5.15

While the numbers indicate modest growth, the company’s ability to consistently improve revenue and profit showcases its operational efficiency and potential for scalability.

Key Performance Indicators (KPIs)

Here are some critical metrics to evaluate Hamps Bio’s financial health:

  • ROE (Return on Equity): 21.14%
  • ROCE (Return on Capital Employed): 18.31%
  • Debt/Equity Ratio: 0.31
  • RoNW (Return on Net Worth): 14.84%
  • P/BV (Price to Book Value): 2.96
  • PAT Margin: 7.73%

Hamps Bio boasts a strong ROE and ROCE, along with a low debt-to-equity ratio, which reflects prudent financial management.

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Strengths of Hamps Bio

  1. Diverse Product Portfolio: The company offers a wide range of pharmaceutical and FMCG products, ensuring a steady revenue stream.
  2. Steady Financial Growth: Hamps Bio has consistently increased its revenue and profitability over the last three years.
  3. Low Debt Levels: A debt-to-equity ratio of 0.31 indicates a solid financial foundation.
  4. Experienced Leadership: Under the guidance of Managing Director Herrik Shah, the company has scaled its operations and penetrated niche markets.

Concerns to Consider

  1. Modest Scale: With a market capitalization of ₹22.22 Cr, Hamps Bio is a small player in a highly competitive industry.
  2. Concentration Risk: The company’s growth is heavily reliant on its pharmaceutical and FMCG divisions, leaving little room for diversification.
  3. IPO Size: The IPO’s small size may limit its liquidity post-listing, which could affect its stock performance.

Hamps Bio IPO Registrar

Investors can address IPO-related queries to Bigshare Services Pvt Ltd:

Hamps Bio: Should You Apply for the IPO?

The Hamps Bio IPO offers a compelling investment opportunity for investors looking to diversify their portfolios with a pharmaceutical company showing steady growth. With a low entry price of ₹51 per share, strong financial ratios, and a well-rounded product portfolio, the IPO is worth considering for those with a medium- to long-term investment horizon.

However, the company’s modest scale and small IPO size could pose risks. As always, conduct thorough due diligence and align your investment decision with your financial goals and risk appetite.

FAQs on Hamps Bio IPO

What is the price for the Hamps Bio IPO?

The IPO price is ₹51 per share.

What is the minimum investment for the IPO?

The minimum investment is ₹1,02,000 for 2,000 shares.

3. When will Hamps Bio shares be listed?

The shares will be listed on December 20, 2024, on the BSE SME exchange.

What are the key strengths of Hamps Bio?

Diverse product offerings, steady financial growth, and low debt levels are among the key strengths.

Who are the promoters of Hamps Bio?

The promoters include Herrik Shah, Shrenik Shah, Pallavi Shah, Mitali Shah, and their respective HUFs.

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