Clinitech Lab is a Navi Mumbai based medical laboratory whose all set to raise ₹5.78 crore through an IPO issue. Clinitech Initial Public Offer is being well received in the financial markets. This IPO is expected to be launched soon and gives a perfect chance to investors to invest in the promising health care company. This blog post is devoted to the Clinitech Lab IPO, its main highlights, financial results, and recommendations for investors.
Table of Contents
Clinitech Lab Ltd IPO Overview
Clinitech Lab is an industry that was formed to offer diagnostic laboratory services or a number of tests. Founded with the objective of increasing the availability of enhanced diagnostic solutions in healthcare, Clinitech Lab is a reliable name. Given that the company is planning to go public, the opportunity should be exploited to help the company grow and source for new technology.
Business Model and Operations Of Clinitech Lab
Clinitech Lab operates as a laboratory service provider with numerous laboratories. Among services offered are basic laboratory, diagnostic services and health promotion. Its modern equipment and focus on the quality helped it build its reputation and become more reliable diagnostics’ provider.
Clinitech Laboratory IPO Details
| IPO Date | July 25, 2024 to July 29, 2024 |
| Listing Date | Thursday, August 1, 2024 |
| Face Value | ₹10 per share |
| Price | ₹96 per share |
| Lot Size | 1200 Shares |
| Total Issue Size | 602,400 shares (aggregating up to ₹5.78 Cr) |
| Fresh Issue | 602,400 shares (aggregating up to ₹5.78 Cr) |
| Overall Subscription | 6x |
| Issue Type | Fixed Price Issue IPO |
| Listing At | BSE SME |
| Share holding pre issue | 1,680,000 |
| Share holding post issue | 2,282,400 |
| Market Maker portion | 31,200 shares |
Clinitech Lab IPO GMP Today
On it first day of offering the subscription rate of Clinitech IPO reached 2.61 times. By the second day overall subscription increased to 6 times. That indicates a good position of investors for the IPO.
The anticipation of Grey Market Premium for Clinitech Laboratory Limited IPO is ₹23. The estimated listing price of the Clinitech Lab IPO is ₹96 per share. This price combines the cap price and today’s GMP. This table shows the Clinitech Laboratory IPO’s GMP trend from the previous days.
The expected listing share price range of Clinitech Lab Ltd IPO is ₹96 to ₹120.
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| GMP Date | IPO Price | GMP Price |
| July 29, 2024 | ₹96 | n/a |
| July 28, 2024 | ₹96 | ₹23 |
| July 27, 2024 | ₹96 | ₹24 |
| July 26, 2024 | ₹96 | ₹24 |
| July 25, 2024 | ₹96 | ₹40 |
| July 24, 2024 | ₹96 | ₹40 |
| July 23, 2024 | ₹96 | ₹42 |
| July 22, 2024 | ₹96 | ₹40 |
| July 21, 2024 | ₹96 | ₹35 |
| July 20, 2024 | ₹96 | ₹25-40 |
Clinitech Laboratory Limited IPO Timeline (Tentative Schedule): Important Dates
Clinitech Laboratory IPO opens on July 25, 2024, and closes on July 29, 2024.
Highlight you some important dates:
| IPO Open Date | Thursday, July 25, 2024 |
| IPO Close Date | Monday, July 29, 2024 |
| Basis of Allotment | Tuesday, July 30, 2024 |
| Initiation of Refunds | Wednesday, July 31, 2024 |
| Credit of Shares to Demat | Wednesday, July 31, 2024 |
| Listing Date | Thursday, August 1, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 29, 2024 |
Clinitech Laboratory Limited IPO Lot Size
The shares of the company can be purchased in lots as from 1200 shares and multiples thereof. The following table enlists the details of minimum and maximum investment by the retail investors and HNI in terms of share and amount.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1200 | ₹115,200 |
| Retail (Max) | 1 | 1200 | ₹115,200 |
| HNI (Min) | 2 | 2,400 | ₹230,400 |
Clinitech Laboratory IPO Reservation
| Investor Category | Shares Offered |
| Retail Shares Offered | 50% of the Net Issue |
| Other Shares Offered | 50% of the Net issue |
Clinitech Lab IPO Promoter Holding
The company is owned by Jagdish Umakant Nayak along with his wife Jyoti Jagdish Nayak and his son Ashutosh Jagdish Nayak.
| Share Holding Pre Issue | 83.63% |
| Share Holding Post Issue | 61.56% |
Clinitech Laboratory Limited Financial Information (Restated)
Clinitech Laboratory Limited recorded a 1% growth in its revenue. by 19% and profit after tax (PAT) declined to -39.46% with the financial year ending with 31st March, 2024 and up to 31st March, 2023.
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 560.79 | 603.33 | 368.74 | 273.32 |
| Revenue | 643.92 | 636.34 | 645.70 | 459.63 |
| Profit After Tax | 37.12 | 61.31 | 51.26 | 40.24 |
| Net Worth | 354.80 | 238.08 | 184.81 | 139.03 |
| Reserves and Surplus | 186.80 | 88.08 | 34.81 | 72.37 |
| Total Borrowing | 86.31 | 102.91 | 88.61 | 53.67 |
Key Performance Indicator
Market Capitalization of Clinitech Laboratory IPO at IPO is Rs 21. 91 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| Debt/Equity | 0.24 |
| RoNW | 10.46% |
| P/BV | 4.55 |
| PAT Margin (%) | 5.76 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 2.21 | 1.63 |
| P/E (x) | 43.45 | 59.03 |
Note:
- Pre IPO EPS is calculated using the pre issue shareholders as on the RHP date and latest FY earning that is till March 31, 2024 which is reflected in the RHP.
- The Post Issue EPS depends on Post issue shareholding and annualised FY earning of March 31, 2024 Disclosed in RHP.
Objects of the Issue (Clinitech Laboratory IPO Objectives)
The Company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:
1. Expansion of Diagnostic Centres;
2. General Corporate Purposes.
Clinitech Laboratory IPO Review (Avoid)
The company is situated within a competitive and loosely concentrated industry. It established almost stagnant top line for the reported periods and enlarged bottom line for FY24. According to FY24 super earnings, the issue is significantly overpriced. It is advisable not to go for this risky bet in any way.
Financial Performance Clinitech Laboratory Limited
Revenue and Profit
Clinitech Lab has painted a good picture of its financial performance in the last couple of years. The revenue of the company for fiscal year 2023 was INR 200 crore, which has grown by 15% annually. It made nett profit worth INR 20 crore in the same period that marks good profit margin of 10%.
Growth Projections
Financial performance expectations are very ambitious; the company is expected to earn a mean annual growth rate of its revenues at 12 percent in the next five years. This development is therefore spurred by increased service delivery specialization, broad market coverage and partnerships.
Use of Proceeds
The funds raised from the IPO will be allocated towards:
- Expansion of Diagnostic Centers: Opening of new diagnostic centers to expand its areas of market operation.
- Technology Upgradation: Purchasing higher-quality diagnostic tools and utilizing modern approaches.
- Working Capital Requirements: Optimizing business processes and providing core business requirements.
- Debt Repayment: Debt optimization to turn the company’s existing dept into better financial health.
Valuation and Risk Factors Of Clinitech Lab Limited IPO
Valuation
Based on the IPO price band, the company’s valuation is estimated to be around ₹95 crore. This valuation reflects the company’s strong financial performance and growth prospects.
Risk Factors
Investors should consider the following risk factors before investing in the Clinitech Lab IPO:
1. Market Competition: Diagnostic industry is a heavily competitive industry and there are already several players in this market.
2. Regulatory Risks: Regulations may change which will affect business operations.
3. Operational Risks: Expansion and technology upgrades entail operational risks that may dent the company’s profitability.
Analyst Recommendations
Analysts have given out different recommendations regarding the Clinitech Lab IPO on the market. While some focus on its future prospects and attractive investments others note threats that include, competition and regulatory challenges. Such points of view should also be well-considered by potential investors with regards to personal risk tolerance.
How to Apply Clinitech Lab Ltd IPO?
Investors can apply for the Clinitech Lab IPO through the following methods:
- Online Applications: Through stockbroking platforms compatible with mobile devices.
- Physical Applications: Through submitting application forms to authorized branches of banks and brokers.
- ASBA: Apply through the ASBA (Application Supported by Blocked Amount) facility offered by banks through Netbanking.
Conclusion
The Clinitech Lab IPO in particular is compelling because of its sound financial history and management plan. However, as is the case with any investment, it is important to consider the risks involved and seek professional advice on the matter. Researchers, thus, suggest that through awareness and researching well investors can make good decisions in the ever-growing market of IPOs.
Clinitech Laboratory Limited Contact Details
Clinitech Laboratory Limited
AL-1/545, Sector 16, Airoli
Opposite Radhikabai Meghe Vidyalaya
Navi Mumbai, Thane – 400708,
Phone: +91 22 27792281
Email: [email protected]
Website: https://clinitechlab.com/