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14 January 2024

Sunrest Lifescience IPO: Illuminating Healthcare Solutions

Introduction:

Sunrest Lifescience IPO, a fixed-price issue of Rs 10.85 crores, is creating ripples in the financial market. This exclusively fresh issue consists of 12.91 lakh shares, reflecting the company's commitment to expansion and innovation. The IPO bidding spanned from November 7, 2023, to November 9, 2023, with the allotment finalized on November 15, 2023. Subsequently, the shares debuted on NSE SME on November 20, 2023.

Financial Highlights:

Priced at ₹84 per share, the minimum lot size for retail investors was set at 1600 shares, requiring a minimum investment of ₹134,400. The total issue size comprised 1,291,200 shares.

Key IPO Metrics:

- IPO Duration: November 7, 2023, to November 9, 2023
- Listing Date: November 20, 2023
- Face Value: ₹10 per share
- Price: ₹84 per share
- Lot Size: 1600 Shares
- Total Issue Size: 1,291,200 shares, aggregating up to ₹10.85 Cr
- Fresh Issue: 1,291,200 shares, aggregating up to ₹10.85 Cr
- Issue Type: Fixed Price Issue IPO
- Listing At: SME, NSE

Equity Dynamics:

The pre-issue shareholding was 3,000,000, and post-issue stands at 4,291,200 shares. The market maker portion includes 65,600 shares managed by Svcm Securities.

Reservation Dynamics:

The IPO offers 1,291,200 shares, with allocations of 5.08% to Market Makers and 47.46% each to NII and RII.

IPO Timeline Highlights:

- IPO Open Date: Tuesday, November 7, 2023
- IPO Close Date: Thursday, November 9, 2023
- Basis of Allotment: Wednesday, November 15, 2023
- Initiation of Refunds: Thursday, November 16, 2023
- Credit of Shares to Demat: Friday, November 17, 2023
- Listing Date: Monday, November 20, 2023
- Cut-off time for UPI mandate confirmation: 5 PM on November 9, 2023

Lot Size Landscape:

Investors had the flexibility to bid for a minimum of 1600 shares and in multiples thereof. The table below outlines the investment parameters for retail investors and HNIs:

Application	Lots	Shares	Amount
Retail (Min)	1	1600	₹134,400
Retail (Max)	1	1600	₹134,400
S-HNI (Min)	2	3200	₹268,800

About Sunrest Lifescience Limited:

Incorporated in 2017, Sunrest Lifescience Limited specializes in offering a diverse range of healthcare and personal care products. Their product range includes Capsules, Tablets, Syrup, Ointment, Gel, mouthwash, Solution, Suspension, Dry Powders, and Toothpaste. The company collaborates with third-party pharma product manufacturers, including Trilend Pharmaceuticals Private Limited.

Financial Performance Snapshot:

As of June 30, 2023:

- Assets: ₹1,706.28 Lakhs
- Revenue: ₹563.58 Lakhs
- Profit After Tax: ₹75.08 Lakhs
- Net Worth: ₹386.60 Lakhs
- Reserves and Surplus: ₹86.60 Lakhs

Key Financial Indicators:

- ROE: 53%
- ROCE: 98%
- Debt/Equity: 0.64
- RoNW: 65.59%
- EPS (Rs): 6.81
- P/E (x): 12

Objects of the Issue:

The proceeds from the fresh issue will be utilized for:
1. Meeting Working Capital Requirements 2. General Corporate Purposes 3. Meeting Public Issue Expenses

Expert Analysis:

The issue seems fully priced based on annualized FY24 super earnings. The small equity post-IPO suggests a longer duration for migration to the mainboard. Informed/cash surplus investors may consider long-term investment for potential rewards.

IPO Subscription Status:

As of November 9, 2023, the Sunrest Lifescience IPO was subscribed 48.54 times. The retail category was subscribed 65.74 times, QIB category data is not provided, and NII category was subscribed 29.17 times.

Note: All financial figures are in INR (Indian Rupees), and market-related data is as of November 9, 2023.

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