Claris Lifesciences - IPO Note (Keynote Capitals)

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 IPO of Claris Lifesciences Ltd.

Issue Highlights

Price Band                                           : Rs 278 – 293 per share                                                          

Minimum Bid Lot Size                         : 22 Equity Share

IPO open during                                  : November 24 – 26, 2010

Book Running Lead Manager               : Enam Securities, Edelweiss Capital, JM Financial, ICICI Securities

To list on                                             : NSE & BSE

IPO Grading                                         : 3 / 5 (Fitch)

PE                                                        : 11.4x (based on base price)*

                                                            : 12.0x (based on cap price)*

Market Cap post-listing                        : Rs1799.7Cr or $397.3mn (based on the cap price)

Market Cap of Free Float                      : Rs509.5Cr or $112.5mn (based on the cap price)

* based on FY10 EPS.

IPO of 10.24mn equity shares of Rs10 each, aggregating to Rs300Cr or $66.23mn (at the cap price).

Executive Summery

•     Claris Lifesciences Ltd. (Claris Lifescience) is one of the largest Indian sterile injectables pharmaceutical companies with a presence in 76 countries worldwide.

•     The products offered by the company comprise 128 products across multiple markets and therapeutic areas and all of its products are off-patent products, a significant majority of which are capable of being directly injected into the body and are predominantly used in the treatment of critical illnesses.

•     The products range across various therapeutic segments, including anaesthesia, critical care, anti-infectives, renal care, infusion therapy, enteral nutrition, parenteral nutrition and oncology. It offer injectables in various delivery systems, such as glass and plastic bottles, vials, ampoules, pre-filled syringes and non-PVC and PVC bags.

•     The manufacturing facilities of Claris Lifescience are located in Ahmedabad (Clarion I-IV). One of its facilities, Clarion V, is currently under construction and the management expects it to be operational by the third quarter of 2011.

•     Claris Lifescience has a differentiated business model among Indian pharmaceutical companies due to its focus on a range of complex injectable products. It has established a portfolio of injectable products across various therapeutic segments, technologies and delivery systems and is one of the largest amongst Indian pharmaceutical companies.

•     Claris Lifescience has entered into business arrangements with the Pfizer group as well as with other local companies in regulated markets to grow its distribution network and to strengthen its sales and marketing presence across 76 countries.

•     Claris Lifescience has the R&D capability and experience to develop, manufacture and register products across various delivery systems to increase the efficiency of drug delivery and make its products better suited to market requirements.