Survival Technologies Ltd. works with customers throughout the product lifecycle, including in-house research and development, commercial-scale process development, and commercial manufacturing of specialty items. It synthesized 677 products between April 1, 2007 and March 31, 2022, including 500 commercially manufactured for the export market.
The company is a market leader in contract research and manufacturing services (CRAMS) for specialty chemicals. It primarily produces import substitution chemicals, such as complex chemicals derived from heterocyclic and fluorochemical compounds, which are primarily imported from China. The company’s specialty chemicals are sold to a variety of businesses in the United States. Survival Technologies Ltd. has filed a DRHP seeking Rs. 1000 crore in funding from investors. The IPO contains new equities worth
Rs. 200 crore as well as an offer to sell equities worth Rs. 800 crore from the existing promoters.
Survival Technologies Ltd. IPO Objective
The company proposes to utilize the net proceeds received from the fresh issues in the following areas.
- Funding working capital requirements
- General corporate purposes
Should you invest in Survival Technologies Ltd.?
You may like to consider the following reasons before investing in the Survival Technologies Ltd. IPO:
- The company provides a diverse product range that is supported by robust R&D.
- In FY22, it will be one of the major Indian CRAMS firms in the production of certain specialized chemicals.
- The nature of the industry in which the company works precludes significant restrictions due to a high entrance barrier.
Survival Technologies IPO Financials
| Particulars | Year ending on March 31, 2022 | Year ending on March 31, 2021 | Year ending on March 31, 2020 |
|---|---|---|---|
| Revenue from Operations | 3,117.8 | 2,747.9 | 1,991.5 |
| Profit After Tax (PAT) | 734.6 | 563.2 | 190.2 |
| PAT Margin | 23.56% | 20.50% | 9.57% |
| EBITDA | 919.0 | 696.5 | 349.1 |
| EBITDA Margin | 29.48% | 25.35% | 17.53% |
| ROE | 32.6% | 37.0% | 19.8% |
Survival Technologies Ltd. Noteworthy highlights
- CRAMS activities generate more than half of the company’s revenue. The remainder is generated by the custom production of specialized chemicals.
- Survival Technologies has recorded a 25.1% CAGR in revenue from FY20 to FY22.
- The company’s gross profit increased by 39% from Rs. 831 million to Rs. 1,616 million.
Know Us before investing
Strengths
- The company undertakes CRAMS projects for research and development and manufactures products for export and domestic markets.
- It has the deep industry knowledge to handle complex chemistry with a proven track record.
- It’s one of the most profitable specialty chemical manufacturing companies in India during Fiscal 2022.
Risks
- Any deterioration in customer relationships can adversely impact financial and operational performance.
- The company must obtain and renew its license periodically to continue business operations.
- The investors must appraise themselves of the valuation risk of the company before buying the IPO.
Survival Technologies IPO FAQs:
Q1. What is Survival Technologies Ltd. IPO?
Ans. Survival Technologies Ltd. Ltd. IPO worth Rs.1000 crore comprises Rs. 200 crore in fresh issues and Rs. 800 crore offer for sale (OFS) equities from existing promoters.
Q2. When will Survival Technologies Ltd. IPO allotment available?
Ans. Will be updated soon.
Q3. What will be the Survival Technologies Ltd. IPO lot size?
Ans. Will be updated soon.
Q4. When will Survival Technologies Ltd. IPO open for subscription?
Ans. Will be updated soon.
Q5. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can apply for a minimum of one lot.
Q6. When will Survival Technologies Ltd. list on exchanges?
Ans. Will be updated soon.
Q7. What would be the listing gains on the Survival Technologies Ltd. IPO?
Ans. Listing gains cannot be calculated before the listing of the IPO on the stock exchange.
Q8. I have finished the application process for Survival Technologies Ltd. IPO, but the funds are not yet debited. What is the reason?
Ans. At the first step, the bank only blocks the amount in your account. The money will be debited when the shares are allotted or unblock the amount after the UPI mandate expiry date.
Q9. How to approve the UPI mandate request for Survival Technologies Ltd. IPO?
Ans. Login to your UPI handle to approve the payment mandate and complete the IPO application process.
Q10. Can I submit more than one application for the public issue of Survival Technologies Ltd. using one PAN?
Ans. You are allowed to submit only one application using one PAN card.
Q11. What is the minimum order quantity for Survival Technologies Ltd. IPO?
Ans. Will be updated soon.
