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Company Background
IPO details
Issue opens
Issue closes
Issue size
Rs404-Rs411.5 crore
Offer size
Rs10
Issue to public
QIB portion
Non-institution portion
Retail portion
Price band
Rs880-896/share
Shareholding pattern
Shareholding pattern
Pre-issue (%)
No of shares
No of shares
1.75
80.5
1.48
66.5
Public
0.42
19.5
0.75
33.5
Total
2.18
100
2.23
100
Promoters
Registered Office: Sharekhan Limited, 10th Floor, Beta Building, Lodha iThink Techno Campus, Off. JVLR, Opp. Kanjurmarg Railway Station,
Kanjurmarg (East), Mumbai 400042, Maharashtra. Tel: 022 - 61150000. Sharekhan Ltd.: SEBI Regn. Nos.: BSE: INB/INF011073351 / BSE-CD ; NSE:
INB/INF/INE231073330 ; MSEI: INB/INF261073333 / INE261073330 ; DP: NSDL-IN-DP-NSDL-233-2003 ; CDSL-IN-DP-CDSL-271-2004 ; PMS-INP000000662;
Mutual Fund-ARN 20669; For any complaints email at igc@sharekhan.com ; Disclaimer: Client should read the Risk Disclosure Document issued by SEBI
Sharekhan
Julythe14,
& relevant exchanges and Dos & Donts
by MCX & NCDEX and
T &2016
C on www.sharekhan.com before investing.
Human Healthcare
& Nutrition
Bio-Processing
Animal Nutrition
Food Processing
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Key risks
Completely depended on subsidiaries for sales in
regions related to North America
Advanced Enzyme is significantly dependent on foreign
subsidiaries incorporated in North America for the sale
and marketing of most of the products in these regions.
Any disruption in operations of these foreign subsidiaries
could have an adverse impact on its business prospects,
financial condition and results. For FY2016, around 54.94%
of its total revenues were derived from USA, 3.84% from
Europe, 3.63% from Asia (ex-India) and 1.15% from other
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Valuation
At the upper end of the IPO price band, the stock is
valued at P/E ratio of 25.2x FY2016 earnings.
Financials (consolidated)
Profit & Loss account
Rs cr
Particulars
FY12
FY13
FY14
FY15
FY16
Revenue
171.7
220.4
239.5
223.1
293.8
Total expense
109.5
130.9
135.7
132.2
155.5
62.3
89.6
103.8
90.9
138.2
Other income
3.1
3.7
1.0
1.2
0.9
Depreciation
5.5
7.5
9.9
9.0
8.7
12.2
9.6
13.2
9.3
7.9
EBITDA
Interest
Exceptional items
0.0
0.0
54.0
0.0
0.0
PBT
47.7
76.2
27.8
73.7
122.5
Tax
14.0
25.9
6.4
22.8
43.2
33.7
50.3
21.4
50.9
79.3
Minority interest
0.3
1.1
1.3
0.8
0.9
Reported PAT
33.3
49.2
20.1
50.1
78.4
Adjusted PAT
33.7
50.3
75.4
50.9
79.3
6.6%
14.6%
61.1%
40.1%
32.9%
Balance sheet
Particulars
Rs cr
FY12
FY13
FY14
FY15
FY16
Share capital
20.7
21.8
21.8
21.8
21.8
75.2
140.2
144.6
188.3
257.0
Total Equity
96.0
162.0
166.4
210.0
278.7
1.6
2.4
3.6
4.5
5.4
139.3
116.7
87.5
54.0
38.8
5.7
13.3
12.8
14.8
17.4
0.0
0.0
0.0
0.0
0.2
36.0
33.7
39.1
23.6
29.6
Trade payables
18.2
16.9
10.4
11.6
12.3
44.2
42.6
59.6
82.3
58.5
8.0
8.7
28.9
17.2
10.8
Total Liabilities
349.0
396.3
408.3
418.1
451.7
Fixed assets
264.6
288.6
289.5
292.4
293.5
Investments
0.1
0.1
0.1
0.1
0.1
12.0
13.9
16.8
16.0
18.0
Minority Interest
Long term borrowings
0.1
0.3
9.0
6.0
0.3
Inventories
29.1
44.6
49.9
52.6
60.5
Trade receivables
32.7
39.1
32.4
37.0
41.8
5.3
3.7
2.6
4.3
26.3
4.1
5.5
7.2
8.8
4.5
1.2
0.6
0.7
0.8
6.6
349.0
396.3
408.3
418.1
451.7
Total Assets
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About industry
Industry size
The global enzyme market stood at $5.1 billion in
2012, of which industrial enzymes constituted $3.6
billion, or 71% of the total world demand. The balance
29% was contributed by specialty enzymes. Enzymes
are natural protein molecules produced by all living
organisms, functioning as highly specialised catalysts for
accelerating the pace of chemical reactions. They help
a chemical reaction to materialise quickly & efficiently,
without undergoing any change themselves. Enzymes
are responsible for many essential biochemical reactions
and metabolic processes in microorganisms, plants,
animals, and human beings. But, they are not alive.
Enzymes are highly efficient in increasing the reaction
rate of biochemical processes that otherwise proceed
very slowly, or in some cases, not at all, and are also
biodegradable. Moreover, with the positive environmental
Growth in enzymes
Going forward, the global enzyme demand is expected
to experience a broad-based growth, led by strong
demand across all enzyme types, with market growing
by 6.3% every year to $7.0 billion in 2017 from $5.1
billion in 2012. The market is further expected to grow
at a 5-year CAGR of 6.5% after 2017, reaching a size of
$9.5 billion by 2022. Through this period, the growth
in the global enzyme demand is expected to be led by
specialty enzymes, including diagnostic, research and
biotechnology enzymes, as well as biocatalysts and
increasing penetration of enzymes into their potential
applications in developing countries.
2002
2007
2012
2017
2022
570
940
1320
1865
2555
Cleaning products
530
740
920
1245
1690
Biofuel production
90
290
515
555
640
Animal feed
168
310
395
540
745
Other industrial
362
420
480
555
670
1720
2700
3630
4760
6300
380
543
815
1180
1720
Diagnostic
203
282
430
640
950
97
175
255
370
530
680
1000
1500
2190
3200
2400
3700
5130
6950
9500
Industrial Enzymes
Total
Specialty enzymes
Other specialty
Total
Grand total
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2002
2007
2012
2017
2022
North America
1065
1576
2130
2630
3310
Western Europe
645
910
1090
1390
1715
Asia-Pacific
395
683
1110
1745
2770
Other Regions:
295
531
800
1185
1705
112
203
321
470
665
Eastern Europe
105
175
245
350
490
78
153
234
365
550
2400
3700
5130
6950
9500
Africa/Middle East
World Enzyme Demand
The views expressed in this report are our views only and have been arrived at after analysis of the public offering details. This is not
a recommendation under our Stock Idea category. It may/may not be included in the Stock Idea by our analysts at a later date.
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