Vadivarhe ( VSCL) was incorporated in 2009, is a globally active, Indian chemical producer, focused on organic chemicals and custom synthesis and primarily engaged in manufacturing of Specialty chemicals, Active Pharmaceutical ingredients, intermediate and personal care ingredients. VSCL is also ISO 9001:2015 certified company by Quality Systems Zurich and has also received WHO- GMP Certificate for their Manufacturing, Marketing & Supply of Active Pharma Ingredients i.e. API’s and intermediates. The manufacturing facility is located at Vadivarhe, Nashik which is about 20 Km from Nashik towards Mumbai and around 150 Km from Mumbai.
Fem Care Pharma Ltd was promoted by Mr. Sunil Haripant Pophale which was later taken over by Dabur India Ltd in the year 2009. Mr. Sunil Haripant Pophale sold his stake in Fem Care Pharma Ltd to Dabur India Ltd and as per the terms and condition of the Division Transfer Agreement dated May 07, 2009 the Speciality chemical division of Fem Care Pharma Limited was transferred to Vadivarhe Speciality Chemicals Limited. The IPO of Fem Care was at Rs.40/- in the year 1996 and the sale to Dabur was done at Rs.800/- per share.
Some of VSCL’s major clients are Glaxo Smithkline Pharmaceuticals Ltd, Fine Organics Ltd UK, Chem-Impex International INC, D C Fine Chemicals, USV Ltd, Lupin Ltd, Mankind Pharma Limited, Himedia Laboratories Pvt. Ltd., Hetero Labs Ltd & many others in the Domestic and International sector.
Shares of VSCL will be listed on NSE EMEGE platform on 2nd June after its successful IPO at Rs. 42/- which closed on 25th May and was oversubscribed by 40 times. The issue was for 34,44,000 shares out of which 27,55,000 shares was an offer for sale by the promoters. Post issue, the Equity capital will be Rs. 12.78 Crs and the promoters shareholding post issue would be 74%
For FY 17 VSCL has reported profit after tax of Rs.601 lakh which works out to an EPS of Rs. 4.70 on the expanded equity. The Return on Equity was a healthy 24.43% For FY 18 the company is confident to increase its turnover from Rs.35 crs to Rs.51 crs and have a PBT of Rs.14 crs and PAT of Rs.10 crs. The vision is to achieve a turnover of Rs.100 crs by 2021.
Present plant capacity is sufficient to support a turnover of around Rs.60 crores. With additional capex of Rs.5 crs additional capacity to achieve Rs.20 crs turnover is possible.
Looking at the growth prospects and March 18 eps of Rs. 7.75 and with companies in this sector commanding PEs between 20 times to 30 times earnings we have a potential multibagger over next 2-3 years.
Link of Prospectus: https://www.nseindia.com/emerge/corporates/content/VSCL_PROSP.pdf
VSCL MANUFACTURING FACILITY:
Disc: Applied in IPO and will add on listing