Infinion Biopharma Limited IPO Review

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Infinion Biopharma Limited is a life sciences corporation that blends various biological science. The company’s objective is to combine biophysics and engineering with classical pharmacology and biochemistry. It helps them to develop high-value, unique medications in a variety of therapeutic domains. In this article, we take a closer look at the Infinion Biopharma Limited IPO Review and its possible future prospects.

The company has built a global scientific ecosystem, and the ecosystem has many renowned and great scientists from a variety of fields. The team of scientists is from biophysics, biochemistry, pharmacology, and biotechnology. The company and the team aim to develop novel solutions to manage and treat various conditions. Their secondary goal is to bring innovative treatment options to India while being accessible to the common people. 

The company is engaged in the pharmaceutical industry, innovative pharmaceuticals intermediates, licensing and commercializing high-value products in various therapeutic areas.

The business operation of the company is divided in:

  • Formulation Technology for superior skincare and female health products. They have a licensed technology venture with Ansella Therapeutics Inc. of the USA for the skincare segment.
  • Biotechnology to provide better diagnostic and therapy options. The main focus in biotechnology is on the treatment of neurological diseases. The company has an association with Aurum Biosciences of the United Kingdom for this key area.
  • Process Technology to enable better procedures for manufacturing biological pharmaceuticals. It is a major business operation of Infinion Biopharma. The company has collaborated with Mobius Biomedical Inc of the USA for growth opportunities in this sector.

OBJECTS OF THE IPO ISSUE:

  • Prepayment of all or significant part of the loan on the company on a consolidated basis.
  • To accomplish corporate targets.

BASIS OF THE OFFER:

The IPO Issue Price is based on several qualitative characteristics and strengths of the company, which include:

  • Promoters with years of expertise and extensive domain knowledge.
  • Patented and Licensed Technology from Around the World.
  • Collaborations with well-known manufacturers.
  • The benefit to the first mover.
  • Their track record of successful execution.

STRENGTHS AND GROWTH ASPECTS OF INFINION BIOPHARMA LIMITED IPO:

  • The company is engaged in various sub-segments of the pharmaceutical industry. It is an innovation-driven life sciences company that combines biophysics and engineering with traditional pharmacology and biochemistry to produce high-value, innovative products across a range of therapeutics.
  • The company plans to invest Rs 100 crore towards developing innovative technologies in healthcare. It plans to set up a manufacturing and research facility in India.
  • The company is looking to develop innovative technologies for key therapeutic areas of diabetes, women’s healthcare, drug delivery in pain, and infection. Their other primary focus is on developing new, economical, and proprietary treatment options and technologies. 
  • The company is developing a range of economical and proprietary treatment options for various indications, including cancer, inflammatory disorders, and diabetes. 
  • Infinion Biopharma intends to patent the processes and products and plans to license them out to drug makers. 
  • The company also plans to enter the consumer segment by launching products.
  • The company is also developing localized, biodegradable drug-delivery technologies. 
  • Over the years, Infinion Biopharma has made a strategic investment in different biotechnology companies. 
  • The company has strong ties with its associated companies. They have obtained both license rights and purchasing ownership in the businesses.
  • The company has strong ties to one of India’s major direct selling distribution networks, Vestige Marketing Pvt. Ltd. It enables them to have exposure to a large distribution network in India.
  • Infinion Biopharma Limited has also invested in early-stage pharmaceutical research and technology development firms. The company also has a long-term stakeholder value creation strategy.
  • With the reduced time in research and development, Infinion Biopharma can now focus on expanding its sales and distribution network to reach more customers.
  • With the PLI scheme Atmanirbhar Campaign, the company is expected to gain higher expenses in the future.
  • The high brand value drives a high customer base.
  • Focused framework and customer experience.
  • The other aspect of high growth is due to the presence of COVID-19. There are immense potential outcomes of expansion in income and revenue. 

WEAKNESS AND THREATS OF INFINION BIOPHARMA LIMITED IPO:

  • The company had a history of net losses in recent financial years. 
  • For the operation of the product development and continued manufacturing of their licensed items, the company is primarily reliant on third-party contract manufacturers.
  • The company’s business may be considerably and negatively affected if their strategies in formulating their strategic and business operations are incorrect.
  • The company doesn’t have a land bank. 
  • Their product development may not be as fruitful as they had hoped. It can lead to a potential product failure.
  • One of the directors of the company is currently involved in a lawsuit.
  • Any negative change in regulatory regulations regulating the items they intend to market could hurt their business.
  • The disruption or shutdown of their contract manufacturers and manufacturing facilities could hurt the business.
  • Infinion Biopharma Limited is a still-growing company. The company’s market cap is in the small-cap category; they need to execute their plans correctly as many new and well-established companies are continuously expanding the business operation in the core segment of Infinion Biopharma Limited.
  • Any product recall or product not satisfying FDA and Medical Standards could hurt their business.
  • The COVID-19 pandemic, or any broad public health emergency, might significantly and negatively influence their industry.

INFINION BIOPHARMA LIMITED IPO DETAILS:

Infinion Biopharma limited, an Ahmedabad-based company, submitted its DRHP to SEBI for approval to float its IPO. The IPO of the company is of 45,00,000 equity shares. The IPO is a [pure OFS based IPO. The Offer doesn’t include any fresh issue and an OFS up to 45,00,000 equity shares of the face value of Rs.10/ Equity Share. The promoters of the company bring the OFS of the company. Infinion Biopharma limited will also consider a pre-IPO allotment of 7,00,000 equity shares.

The funds from the IPO will be used for sales, marketing, and distribution expenses to set up the company’s geographical reach and general corporate purposes. The Proceeds from the IPO will be used towards investment in Mobius Biomedical Inc, acquisition of licenses for product development of skincare and women’s health products, and working capital requirements.

IPO Opening DateNovember 2021
IPO Closing DateNovember 2021
Issue TypeBook Building Type
Face ValueRs. 10/ Equity share
IPO Price 
Market Lot 
Min Order Quantity 
Listing AtBSE, NSE
Issue Size45,00,000 Equity shares
Fresh IssueNIL
Offer for Sale45,00,000 Equity shares
Basis of Allotment DateNovember 2021
Initiation of RefundsNovember 2021
The Credit of Shares to Demat AccountNovember 2021
IPO Listing DateNovember 2021
Basis of the Allotment% Of Allotment of IPO Offer
Qualified Institutional Buyer75
Non-Institutional Investor15
Retail10

PROMOTERS:

The promoters of the company are:

  • Gautam Bali
  • Vishal Jain
  • Govind Singh Chavada

Promoter Holding

Pre-Issue Share Holding54.78%
Post Issue Share Holding
PARAMETERSFY 21FY20YoY GROWTH%
 Total Reserves (In Crores)6.56-1.73478.39
 Operating Profit (In Crores)6.43-1.37570.52
 Profit After Tax (In Crores)6.42-1.37569.87
 ROA (%)47.61-16.80383.30
 ROE (%)50.85-17.71387.15
 ROCE (%)50.28-16.97396.34
 Core EBITDA Growth (%)570.53-281.13302.94
 EBIT Growth (%)570.13-281.40302.60
 PAT Growth (%)569.86-280.22303.36
 EPS Growth (%)548.35-187.77392.03
Financial PeriodBasic EPS (in INR)Diluted EPS (in INR)
Financial Year 20216.246.24
Financial Year 20201.711.71
Financial Year 20190.660.66

 CONTACT DETAILS:

Infinion Biopharma Limited

 407, Silver Radiance, Pakwan Char Rasta,

 Sindhu Bhavan Road, Bodakdev,

 Ahmedabad – 380054

 Tel: +91 – 7948495060

 Email: info@infinionbiopharma.com

 Website: www.infinionbiopharma.com

REGISTRAR:

BIGSHARE SERVICES PRIVATE LIMITED

 1st Floor, Bharat Tin Works Building, Makwana Road,

 Marol, Andheri East, Mumbai – 400 059

 Tel: +91 – 22 – 6263 8200;

 Email: ipo@bigshareonline.com;

 Website: www.bigshareonline.com

LEAD MANAGER(S):

Aryaman financial services limited

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