Aptus Pharma
- Aptus Pharma is coming out with an initial public offering (IPO) of 18,60,000 equity shares in a price band of Rs 65-70 per equity share.
- The issue will open on September 23, 2025 and will close on September 25, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 6.50 times of its face value on the lower side and 7.00 times on the higher side.
- Book running lead manager to the issue is Interactive Financial Services.
- Compliance Officer for the issue is Mohini Hardikbhai Gandhi.
Profile of the company
Aptus Pharma is engaged in the business of marketing, and distribution of finished pharmaceutical formulations. While the company does not own any manufacturing facilities, it operates through a contract manufacturing model. It does not own any manufacturing plants but has entered into contract manufacturing agreement with seven manufacturing units under various arrangements. Of these, it has formal loan and license agreements in place with two manufacturing units. The remaining production is carried out through informal arrangements with Other manufacturers, based on purchase orders (PO).
It provides a diverse range of pharmaceutical products catering to various therapeutic categories including anti-infectives, gastrointestinal, antacids, anti-allergic and respiratory, nutritional supplements, pain management, neuro-psychiatric, cardiovascular, anti-diabetic, lipid lowering, and general wellness products. These are offered across a variety of dosage forms, such as tablets, capsules, softgels, syrups, suspensions, injections, ointments, creams, balms, drops, lotions, vials, powders, gels, and sachets.
The company has established its presence across Two states in India - Gujarat and West Bengal. Gujarat remains its largest market in terms of revenue contribution and product penetration. It has initiated steps to expand into new domestic markets including Maharashtra, Goa, Rajasthan, Madhya Pradesh and Chhattisgarh over the next two financial years. In addition, the company has commenced groundwork to initiate exports and marketing in targeted foreign markets to capitalize on emerging opportunities.
Proceed is being used for:
- Capital expenditure for office premises with furniture and industrial Racks
- Working capital
- General corporate purpose
Industry Overview
Indian pharmaceutical market is estimated to touch $130 billion in value by the end of 2030 and $450 billion market by 2047. India ranks 3rd worldwide for pharmaceutical production by volume and 14th by value. The country has an established domestic pharmaceutical industry, with a strong network of 3,000 drug companies and 10,500 manufacturing units. India’s drugs and pharmaceuticals exports stood at $27.82 billion in FY24 (April- March) and stands at $14.42 billion in FY25 (April-September). According to Government data, the Indian pharmaceutical industry is worth approximately $50 billion with over $25 billion of the value coming from exports. About 20% of the global exports in generic drugs are met by India.
India has emerged as the medial tourism hub of the world providing cost-effective treatments with the latest technology enabled by several pathbreaking reforms and provisions in healthcare sector. The total market size of the Indian Pharma Industry is expected to reach $130 billion by 2030 and $450 billion market by 2047. The domestic pharmaceutical industry would likely reach $57 billion by FY25 and see an increase in operating margins of 100-150 basis points (bps). Indian pharmaceutical companies are projected to achieve a revenue growth of 9-11% in FY25. This growth is expected to be fueled by robust performances in key markets, including the United States, Europe, and emerging regions. India has the largest number of USFDA-compliant pharmaceutical plants outside the US and over 2,000 WHO-GMP approved facilities, serving demand from 150+ countries worldwide, with 10,500+ manufacturing facilities.
Indian pharmaceutical industry is known for its generic medicines and low-cost vaccines globally. Transformed over the years as a vibrant sector, presently Indian Pharma ranks third in pharmaceutical production by volume. Indian drugs are exported to more than 200 countries in the world, with the US as the key market. India’s drugs and pharmaceuticals exports stood at Rs. 2,43,119 crore ($27.82 billion) in FY24 and stands at Rs. 2,12,008 crore ($24.26 billion) in FY25 (April-January). About 20% of the global exports in generic drugs are met by India. India's pharmaceutical industry is projected to experience substantial growth, with exports expected to reach Rs. 30,76,500 crore ($350 billion) by 2047, a 10-15 times increase from current levels. The government has set ambitious target to elevate the medical devices industry in India from its current $11 billion valuation to $50 billion by 2030.
Pros and strengths
Diversified product portfolio: The company’s extensive and well-diversified product portfolio is a key driver of its market resilience and customer reach. The company offers a comprehensive range of over 194 pharmaceutical formulations across more than 11 therapeutic segments, effectively addressing the varied needs of patients and healthcare providers. The company’s therapeutic coverage spans Vital and many categories including anti-infectives, gastrointestinal, antacids, anti-allergic and respiratory care, nutritional supplements, pain management, neuropsychiatric, cardiovascular, anti-diabetic, lipid-lowering, and general wellness products. These wide therapeutic spread positions the company as a good solution provider in the pharmaceutical sector.
Robust and responsive distribution network: A well-integrated and agile distribution network stands as one of the company’s core operational strengths. At the heart of this network is its centrally located 17,721 sq. ft. warehouses in Ahmedabad, Gujarat, which serves as the primary logistics hub to facilitate uninterrupted product flow across all its target markets. To ensure availability and timely delivery, the company has strategically deployed clearing and forwarding agent, supported by logistics partnerships with trusted road transport and air cargo service providers. All shipments are handled with proper packaging standards, keeping in mind product safety and climatic sensitivities.
Competitive and cost-effective pricing: The company follows a well-calibrated pricing strategy that strikes an effective balance between affordability and profitability. By leveraging an asset-light business model, strategic sourcing arrangements, and efficient logistics, the company is able to minimize operational and overhead costs, thereby passing on the benefits to its customers without compromising on product quality. This approach allows the company to offer high-quality pharmaceutical formulations at competitive price points, enhancing accessibility for a wide patient base, particularly in semi-urban and rural regions. The company’s cost-efficient model has not only supported sustainable margins but also fostered trust and loyalty among healthcare professionals and channel partners, reinforcing its position as a value-driven pharmaceutical brand.
Risks and concerns
Does not have its own manufacturing facility for pharmaceutical product: The company operates as a pharmaceutical ethical marketing and distribution company, offering a diverse range of formulation products under its proprietary brand names. It gets its approved formulations manufacture through contract manufacturers. It relies on third-party manufacturers for manufacturing of its products. As on March 31, 2025, it has procured products from seven contract manufacturers. Of preceding three fiscal year ended March 31, 2025, March 31, 2024 and March 31, 2023 its top 5 contract manufacturer contributed 77.88%, 74.61% and 70.71% respectively of the total purchases. Any decrease in the quality or delays in delivery of these products by its contract manufacturers could impact its operations negatively.
Significant revenue comes from limited customers: The company has garnered 48.84%, 55.99% and 68.37% of its total revenue from top 10 customers in FY25, FY24 and FY23 respectively. The loss of one or more of these significant customers or a significant decrease in business from any such key customer, whether due to circumstances specific to such customer or adverse market conditions affecting the pharmaceutical industry or the economic environment generally, may materially and adversely affect its business, results of operations and financial condition.
Warehousing facilities are concentrated in one state only: The company’s warehousing facilities are currently concentrated in Gujarat only. Accordingly, any significant social, political or economic disruption, or natural calamities or civil disruptions in this region, or changes in the policies of the state or local governments of this region or the Government of India, change its business structure or strategy, which could have an adverse effect on its business, results of operations and financial condition. Any such adverse development affecting continuing operations at its warehousing facilities could result in significant loss of its ability to meet customer contracts and distribution schedules and could materially affect its business reputation within the industry.
Outlook
Aptus Pharma is engaged in the business of marketing, and distribution of finished pharmaceutical formulations. The company manufactures and distributors of a broad range of pharmaceutical formulations covering multiple therapeutic areas: antacids & PPIs, pain management, anti-inflammatories, antibiotics, cardiology & antidiabetics, neuropsychiatry, dental, injectable parenterals, syrups, nutraceuticals, sachets, and more. The company has Strategic manufacturing alliances across Gujarat, Uttarakhand and Himachal Pradesh. On the concern side, the company derives a significant part of its revenue from few customers. If one or more of such customers choose not to source their requirements from it or to terminate its contracts or purchase orders, its business, cash flows, financial condition and results of operations may be adversely affected. Moreover, the company does not have its own manufacturing facility for pharmaceutical products and it has to relies on third parties for contract manufacturing of the products sold by the company.
The company is coming out with a maiden IPO of 18,60,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 65-70 per equity share. The aggregate size of the offer is around Rs 12.09 crore to Rs 13.02 crore based on lower and upper price band respectively. On performance front, in the FY25, the company’s total revenue from operation was Rs 2455.77 lakh, which is increased by 37.52% in compare to total Revenue from operations of Rs 1785.70 lakh in FY24. Moreover, PAT is Rs 309.95 lakh for FY25 as compared to Rs 79.81 lakh in FY24, a surge of around four-fold.
The company employs a proactive and assertive marketing strategy designed to establish a strong presence in competitive markets. This approach ensures that the company’s products are strategically positioned and consistently visible to potential customers. The unwavering commitment of the company to product quality serves as a key differentiator, fostering trust and loyalty among healthcare professionals and patients alike. The company utilizes a comprehensive promotional mix to enhance brand visibility and drive product demand. By leveraging multiple channels and targeted campaigns, the company effectively raises brand awareness and cultivates a loyal customer base, ensuring sustained market growth and competitive advantage.
