Review By Dilip Davda on July 20, 2025
- The company is engaged in the manufacturing/marketing/ and supply of wide range of pharmaceutical products.
• The company posted growth in its top and bottom lines for the last two fiscals.
• Based on its recent financial data, the issue appears fully priced.
• The issue is at a discount of around 19.77%.
• Well-informed investors may park funds for medium to long term.
ABOUT COMPANY:
Kilitch Drugs India Ltd. (KDIL) is a growing pharmaceutical company engaged in the manufacturing, supply, and marketing of a wide range of pharmaceutical formulations across solid, liquid, and parenteral dosage forms. It currently operates a manufacturing facility located at C-301/2, MIDC TTC Industrial Area, Pawane Village, Navi Mumbai – 400705, Maharashtra, India. This facility supports the production of dry powder formulations, ophthalmic products, and small volume liquid ampoules and vials.
Over the years, the company has witnessed a consistent increase in demand for products across domestic and international markets. Its Navi Mumbai facility is presently operating at or near full capacity. To cater to this growing demand and enhance operational scalability, KDIL proposes to establish a new Greenfield manufacturing facility at Survey. No. 24/1 to 46, 48 to 56 & 58 to 71, Village – Maldev, Khopoli Pen Road, Khopoli: 410203, Maharashtra India.
Its new Greenfield Project is located at Survey No. 24/1 to 46, 48 to 56 & 58 to 71, Village Maldev, Khopoli Pen Road, Khopoli – 410203, Maharashtra, India (“said land”). The land was acquired through a registered sale deed dated February 28, 2022. The site is strategically located along the Pen National Highway (Zone ‘D’ Area), approximately 73 km from its Head Office at Deonar, Chembur, Mumbai – 400088. The land parcel measures 14.5 acres (58,600 square meters) and development is at an advanced stage. The facility has been designed to comply with all relevant statutory, regulatory, environmental, GMP, and safety requirements.
The new facility is intended to manufacture pharmaceutical products, i.e., Nutraceuticals, Oral Solid Dosage forms, Injectables (Vials, Ampoules), Ophthalmic formulations. This investment will enable the company to scale its production capacities, adhere to global GMP standards, and strengthen our long-term competitive position in both domestic and international markets. However, its business information page is missing from the offer document.
As of March 31, 2025, it had 187 employees on its payroll. The Offer document is silent on its dividend policy.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 1398463 equity shares of Rs. 10 each at a fixed price of Rs. 357 per share to mobilize Rs. 49.93 cr. The RI is opening for subscription on July 23, 2025, and will close on August 18, 2025. The company is offering RI in the ratio of 2 for 23 to its eligible stakeholders as of the record date of July 15, 2025.
The company is asking for full money on application for number of shares applied. Post allotment, shares will be listed on BSE and NSE. The company is spending Rs. 0.47 cr. for this RI process, and from the net proceeds, it will utilize Rs. 47.00 cr. for capex on greenfield project at Pen – Maharashtra, and Rs. 2.46 cr. for general corporate purposes.
The RI is solely lead managed by the company itself, and MUFG Intime India Pvt. Ltd. is the registrar to the issue.
Post RI, company’s current paid-up equity capital of Rs. 16.08 cr. will stand enhanced to Rs. 17.48 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 624.06 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total revenue/ net profit, of Rs. Rs. 154.35 cr. / Rs. 13.58 cr. (FY24), Rs. 198.32 cr. / Rs. 24.94 cr. (FY25). As of March 31, 2025, its NAV stood at Rs. 125.81 per share against Rs. 109.62 per share a year ago period
DIVIDEND POLICY:
The offer document is silent on its dividend policy. The company has not declared dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 524500 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 487.30 on July 14, 2025, and opened on an ex-right basis at Rs. 469.00 on July 15, 2025. Since then, it has marked a high/low of Rs. 490.00 / Rs. 444.95. The scrip last closed at Rs. 444.95 as of July 18, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 490.00 / Rs. 265.60. The counter is currently under ESM: Stage 2.
The promoters’ holding has been constant at 69.23% for the last three quarters ended with March 31, 2025. The counter is currently trading just above its RI price to tempt investors.
NOTE: Our family has token holding in this company and may consider for eligible Rights shares with permissible additional shares, if any.
Conclusion / Investment Strategy
KDIL is engaged in the manufacturing/marketing/ and supply of wide range of pharmaceutical products. The company posted growth in its top and bottom lines for the last two fiscals. Based on its recent financial data, the issue appears fully priced. Despite profits, it has skipped dividends for last two fiscals, that remains major concern. The issue is at a discount of around 19.77%. Well-informed investors may park funds for medium to long term.
Review By Dilip Davda on July 20, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
