Mumbai-based Influx Healthtech files draft papers for SME IPO

Mumbai-based Influx Healthtech Ltd has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO) in NSE Emerge. The company is a Contract Development and Manufacturing Organisation (CDMO) founded in 2020 by Munir Abdul Ganee Chandniwala.

This IPO comprises a fresh issue of up to 50,00,400 equity shares and an offer for sale of up to 11,00,400 equity shares by the founder. Notably, there is a reservation for market makers to ensure liquidity.

The initial share sale is structured as a book-building process, with allocations set to a diverse range of investors: up to 50% for qualified institutional buyers, 15% for non-institutional bidders, and 35% for retail individual bidders. The face value of each equity share is Rs 10. Proceeds from the fresh issuance will predominantly fund new manufacturing facilities.

Influx Healthtech plans to utilise Rs 13.23 crore for the Nutraceutical Division, Rs 4.10 crore for the Veterinary Food Division, and Rs 2.75 crore for the Homecare and Cosmetic Division. The primary aim is to enhance its production capacity across these sectors, reflecting the company's focus on growth and diversification.

Established just five years ago, Influx Healthtech has rapidly become a key player in the CDMO sector, especially in dietary supplements, cosmetics, and veterinary feed supplements. The company operates from Thane, Maharashtra and serves a broad client base, including Bling Brands Private Limited and Evoq Business Ventures LLP.

Financially, the company has shown strong growth. Its revenue from operations rose by 31.44% from Rs 76.05 crore in FY 2023 to Rs 99.97 crore in FY 2024. Profit after tax also increased from Rs 7.20 crore to Rs 11.22 crore over the same period. For the seven months ending November 30, 2024, revenue was Rs 62.75 crore, with a profit after tax of Rs 8.04 crore.

Rarever Financial Advisors Private Limited is managing the issue as the sole lead manager, with Maashitla Securities Private Limited as the registrar. These entities are instrumental in guiding the company through the IPO process.

The competitive landscape for Influx Healthtech involves a range of products, including APIs and finished dosage forms such as tablets and injectables. The company’s efforts to expand its manufacturing capabilities align with industry trends towards increased demand for health-related products.