Vijaypd Ceutical
- Vijaypd Ceutical is coming out with an initial public offering (IPO) of 55,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 35 per equity share.
- The issue will open on September 29, 2025 and will close on October 1, 2025.
- The shares will be listed on SME Platform of NSE.
- The share is priced at 3.5 times higher to its face value of Rs 10.
- Book running lead manager to the issue is Smart Horizon Capital Advisors.
- Compliance Officer for the issue is Madhuri Ganesh Batwa.
Profile of the company
The company is engaged in the business of distribution and supply within the pharmaceutical and consumer goods sectors, offering a comprehensive range of services. Its roles include being representatives, dealers, agents, stockists, suppliers, traders, and packers. It offers a wide range of products serving both the pharmaceutical and wellness industries, as well as the fastmoving consumer goods (FMCG) market. Its pharmaceutical and wellness product range includes medicines such as injections, tablets, capsules, ointments, suppositories, ophthalmic preparations, and liquid oral formulations. It also supplies vitamins, hormones, enzymes, wellness tonics, serums, and diagnostic test kits. In the FMCG segment, it provides personal care and toiletry products, including soaps, sanitizers, and baby care items. Additionally, it deals in ayurvedic products, cosmetics, food products, dental products, and crude drugs.
The company as a distributor of pharmaceutical products, known for leveraging advanced technology to deliver comprehensive healthcare solutions to pharmacies, nursing homes, and clinics across Western Suburban Mumbai, South Mumbai, Ratnagiri, Aurangabad and Akola. It operates three distribution warehouses located across Mumbai, ensuring timely and efficient deliveries. It provides quality products from trusted manufacturers and suppliers. Its diverse portfolio allows it to cater to a broad range of needs across the healthcare, wellness, and consumer goods sectors. It adds value to healthcare product manufacturers by providing them with greater reach and accessibility to pharmacies, hospitals, and clinics. Its robust last mile delivery infrastructure and good relationships with healthcare providers enable manufacturers to make their products available to a wide range of customers, pharmacies, hospitals, and clinics through its distribution infrastructures.
The company offers a comprehensive suite of services designed to ensure the effective and efficient delivery of pharmaceutical products. It manages the timely and safe distribution of medications to pharmacies, nursing homes, clinics, and other healthcare providers, supported by efficient inventory management systems that prevent shortages. Its logistics and supply chain management include coordinating the transportation of products under controlled conditions and providing secure, temperature-controlled warehousing for sensitive items. It handles all aspects of order fulfilment, from processing and packaging to delivery of product, while adhering to strict regulatory standards. Its commitment to regulatory compliance is reflected in its meticulous documentation and adherence to industry regulations.
Proceed is being used for:
- Funding of capital expenditure requirements of the company towards the construction of Pharmaceutical API/ Intermediates and Chemicals manufacturing plant and purchase of machineries in MIDC - Shrirampur, Ahmednagar, Maharashtra
- Repayment/prepayment of all or certain of its borrowings availed of by the Company
- General corporate purposes
Industry Overview
The Indian pharmaceutical industry stands as one of the largest globally, recognized for offering high-quality products at competitive prices. Ensuring that these medicines reach every corner of the country is critical, and this is where a strong distribution network becomes essential. Pharmaceutical distributors play a pivotal role in this network by purchasing products from manufacturers and selling them to hospitals, clinics, retailers, and local chemists, thereby providing vital support to India’s healthcare sector. The pharmaceutical distribution system is crucial for ensuring public access to these high-quality medicines. India also excels in producing bulk drugs, supplying them to the global market.
In the vast and complex pharmaceutical industry, drug distributors serve as the backbone of the supply chain, ensuring that life-saving medications reach patients worldwide. Acting as essential intermediaries, these entities bridge the gap between manufacturers and healthcare providers, such as pharmacies and hospitals. They play a pivotal role in maintaining an efficient, reliable, and secure flow of pharmaceutical products, enabling manufacturers to focus on production while ensuring the timely availability of medicines in diverse regions. Particularly in India, a global pharmaceutical manufacturing hub, the collaboration between manufacturers and distributors has been critical in expanding the accessibility of Indian-made pharmaceuticals globally.
India is the leading exporter of generic formulations in the world, supplying low-cost pharmaceutical formulations to nearly 200 countries across the globe. These include highly regulated markets like US, EU and Japan as well semi-regulated markets across Asia, Africa, South America, Middle East and Africa. Generic drug formulation dominates the pharmaceutical exports from India, while those of biologics, and biosimilars are picking up (but still remain low). The export of API / bulk drugs from India is low, as domestic manufacturing volume well below demand.
Pros and strengths
Comprehensive product portfolio: The pharmaceutical distribution network serves a wide range of healthcare needs, from generic medications to branded drugs, acute therapy drugs, wellness products, OTC products, baby products and food products. This includes medicines for chronic diseases, antibiotics, and nutraceuticals. The distribution also includes a growing range of specialized medicines for chronic medicine, psychiatric medicine, immunology, ophthalmic medicine, cardiology, and endocrinology, among other specialties. This diverse portfolio enables it to cater to a wide variety of healthcare and customised needs of customers. Its technology for inventory management and an efficient order placement system helps it serves customers better. Additionally, its economies of scale, competitive pricing, and logistics network are key to its ongoing success.
Streamlined supply chain management: The company maintains an efficient and well-managed supply chain. This efficiency results in reduced lead times, minimized inventory costs, and improved overall responsiveness to market changes. Such streamlined supply chain operations provide a significant competitive advantage in the pharmaceutical distribution industry, where timeliness and efficiency are crucial factors. By leveraging these competitive advantages, the company continues to thrive in competitive pharmaceutical market, delivering quality products, improve customer relationship and satisfying customer needs. In the pharmaceutical industry, where precision, timeliness, and compliance are critical, an optimized supply chain can indeed provide a substantial competitive advantage.
Strengthen market position by increasing the long-term relationship with clients: One of the pharmaceutical distributors, based in the Western Mumbai Suburban, benefits from its strategic location. The company enjoys easy access to a vast network of pharmaceutical manufacturers, wholesalers, pharmacies, clinics, and nursing homes. This geographical advantage allows for quick distribution across the city and surrounding areas, ensuring efficient delivery and enhancing the company’s ability to meet market demands. For pharmacies, nursing homes, and clinics, it offers a comprehensive procurement solution, with a diverse range of healthcare products, including pharmaceutical products, wellness consumables, over-the-counter medicines and other healthcare products. It also enhances the retail experience through technology-based solutions, such as direct B2B applications and web platforms.
Risks and concerns
Do not have long term agreements with customers: The lack of long-term agreements with its customers significantly heightens the risk to its business, as it exposes it to the possibility of losing customers without any prior notice or commitment. Its customers, including pharmacies, clinics, and nursing homes, are not bound by long-term contracts, which means they can terminate or reduce their business relationships with it at any time, without any obligation. This leaves it vulnerable to sudden and unpredictable changes in its revenue streams, as customers are free to cancel, delay, or reduce their orders at their discretion. Its dependence on customers pricing sensitivity, satisfaction levels, demand changes, and inventory decisions further amplifies the risks it faces. The ability of customers to easily switch suppliers, reduce orders, or seek alternative sources at any time creates a material risk to its business continuity and growth prospects.
Dependent on third-party transportation: It is dependent on third-party transportation for the delivery of its products, and the absence of long-term agreements with such service providers, along with any disruption in their operations or decline in service quality, could adversely affect its reputation and results of operations. It is largely dependent on third-party transportation providers to facilitate the delivery of its products from its warehouses to pharmacies, nursing homes, and clinics. As a result, there is no assurance that these providers will continue to provide services to it on commercially reasonable terms, or at all, in the future.
Do not have long-term agreements with manufacturer: Its business is highly dependent on the availability, cost, and quality of pharmaceutical products, which it primarily procures from domestic suppliers. However, it does not have long-term agreements with manufacturer of pharmaceutical products and an increase in the cost of, or a shortfall in the availability or quality of such pharmaceutical products could have an adverse effect on its business, financial condition and results of operations. The absence of long-term supply contracts means it does not have guaranteed pricing or supply stability. As a result, it is vulnerable to fluctuations in the prices of pharmaceutical products, which can be influenced by factors beyond its control, such as changes in economic conditions, competition, production levels, transportation costs, and import duties.
Outlook
The company is engaged in the business of wholesale Distribution of Pharmceutical products. It has served as a stockist for 150 plus pharmaceutical companies, including the top 60 in the industry. Its roles include being representatives, dealers, agents, stockists, suppliers, traders, and packers. It offers a wide range of products serving both the pharmaceutical and wellness industries, as well as the fastmoving consumer goods (FMCG) market. On the concern side, it derives a significant portion of its revenue from customers located in Maharashtra, while it also procures a significant portion of its raw materials from suppliers based in the State of Maharashtra. Any adverse developments in the region could adversely affect its business, results of operations, cash flows and financial condition.
The company is coming out with an IPO of 55,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 35 per equity share to mobilize Rs 19.25 crore. On performance front, the revenue from operations increased by 96.60%, rising from Rs 5,432.81 lakh in fiscal 2024 to Rs 10,681.01 lakh in fiscal 2025. The company reported a net profit of Rs 479.55 lakh in Fiscal 2025, compared to Rs 165.02 lakh in Fiscal 2024.
The company aims to significantly increase its revenues by diversifying into the manufacturing of Active Pharmaceutical Ingredients (APIs) and excipients. APIs serve as the essential raw materials for pharmaceutical formulations, including various Finished Dosage Forms (FDF) such as tablets, capsules, ointments, syrups, and more. These APIs are integral to the effectiveness of the final pharmaceutical products. In addition, the company plans to manufacture excipients non-active ingredients used in drug formulations alongside APIs. Although excipients do not have direct therapeutic effects, they play a critical role in the pharmaceutical industry by improving the stability, bioavailability, and absorption of the drug. Excipients are essential for the proper formulation of pharmaceuticals, ensuring the drug’s effectiveness and safety.
