Onyx Biotec Listing: Stock makes weak market debut, lists 11.5% below issue price

Onyx Biotec Listing: Onyx Biotec made a weak market debut on Friday, November 22 as its shares were listed at ₹54 each on NSE SME, an 11.50% discount to the issue price of ₹61. However, post-listing, the stock recovered a bit and jumped 5% to reach ₹56.75. 

The SME IPO, valued at ₹29.34 crore, was open for subscription from November 13 to November 18, 2024, with a price band of ₹58 to ₹61 apiece.

The issue saw a robust response from investors, being oversubscribed 198 times. Specifically, the non-institutional segment was oversubscribed 602 times, while the retail investor portion was oversubscribed 118 times. The QIB portion was booked 32.49 times, as per the exchange data.

The company intends to use the net proceeds from the IPO for several purposes, such as upgrading its existing Manufacturing Unit I to produce large-volume parenteral for intravenous use, establishing a high-speed carton packaging line at its existing Manufacturing Unit II for dry powder injections, prepaying or repaying part of its outstanding loans, and for general corporate purposes.

About Onyx Biotec

The company is a pharmaceutical company providing sterile water for injections. It currently manufactures sterile water for injections and serves as a pharmaceutical contract manufacturer, offering a comprehensive range of dry powder injections and dry syrups for both the Indian and overseas markets.

The company has two state-of-the-art manufacturing facilities located in Himachal Pradesh. Its manufacturing facility Unit I has a production capacity of 6,38,889 units of sterile water for injections per day, and Unit II has a capacity of 40,000 units of dry powder injection per day and 26,667 units of dry syrup per day in a single shift.

As of May 31, 2024, the company's key clients include Hetero Healthcare Limited, Mankind Pharma Limited, Sun Pharmaceutical Industries Limited, Aristo Pharmaceuticals Private Limited, Macleods Pharmaceuticals Limited, Mapra Laboratories Private Limited, Axa Parenterals Limited, FDC Limited, Zuventus Healthcare Limited, Akums Drugs and Pharmaceuticals Limited, and Reliance Life Sciences Limited, among others, as per the company's DRHP report.

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