Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Amanta Healthcare Ltd, ensuring that your investment choices are not only profitable but also ethical.
Table of Contents
Analyzing The Company
Company Name: Amanta Healthcare Ltd
Industry: Pharmaceuticals
Listing At: NSE & BSE (Mainboard)
Overview:
Amanta Healthcare, a company that began its journey in 1998 as a manufacturer of large volume parenterals and IV parenteral formulations, has undergone significant evolution to adapt to the changing landscape of the pharmaceutical industry. The company’s core philosophy, driven by the mantra of “Innovision,” emphasizes continuous innovation and change to gain a competitive edge.
This focus on evolution has enabled Amanta Healthcare to diversify its business interests. It has expanded its operations to include the production of irrigation solutions, as well as formulations in ophthalmic and respiratory care, and small volume injectables. This has established the company as a leading player with a broad portfolio of large and small volume sterile dosage forms.
As a mid-sized company with ambitious goals, Amanta Healthcare views evolution as its path to the future. It has become a trusted partner for leading pharmaceutical companies, who outsource their manufacturing to the firm. This trust is a testament to its capabilities as an efficient and versatile contract manufacturing partner, with the expertise to guide a product idea from its initial stages to market.
The company’s vision of Innovision is a dynamic principle that embraces change rather than rigidity. This principle allows the organization to re-engineer itself to remain relevant in a constantly evolving environment. Amanta Healthcare has successfully transitioned from a company that only manufactured and marketed IV fluids to one with robust formulation and development capabilities. Its production facility is now equipped to handle a wide range of products, from 0.5ml injectables to 1000ml irrigation solutions.
Shariah Status
The IPO is Non-Shariah Compliant, please see below image.
IPO Timeline (Tentative Schedule)
- IPO Open Date: Monday, September 1, 2025
- IPO Close Date: Wednesday, September 3, 2025
- Tentative Allotment: Thursday, September 4, 2025
- Initiation of Refunds: Monday, September 8, 2025
- Credit of Shares to Demat: Monday, September 8, 2025
- Tentative Listing Date: Tuesday, September 9, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on September 3, 2025
Lot Size
- Retail Investors:
- Minimum: Can apply for 1 lot, which consists of 119 shares, costing ₹14,994.
- Maximum: Can apply for 13 lots, which consists of 1,547 shares, costing ₹1,94,922.
- Small-HNI (S-HNI) Investors:
- Minimum: Can apply for 14 lots, which consists of 1,666 shares, costing ₹2,09,916.
- Maximum: Can apply for 66 lots, which consists of 7,854 shares, costing ₹9,89,604.
- Big-HNI (B-HNI) Investors:
- Minimum: Can apply for 67 lots, which consists of 7,973 shares, costing ₹10,04,598.
Financials
Based on the financial summary for Amanta Healthcare Ltd., here are the key points:
- Profit Growth: Profit after tax (PAT) surged by 189%, increasing from ₹3.63 crore in the financial year ending March 31, 2024, to ₹10.50 crore in the financial year ending March 31, 2025.
- Revenue Decline: Total income experienced a slight decrease of 2%, dropping from ₹281.61 crore to ₹276.09 crore over the same period.
- Improved Net Worth: The company’s net worth saw a significant rise, growing from ₹66.29 crore to ₹96.39 crore.
- Reduced Borrowing: Total borrowing decreased from ₹205.23 crore to ₹195.00 crore, indicating a reduction in debt.
- EBITDA Increase: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a modest increase, rising from ₹58.76 crore to ₹61.05 crore.
- Asset Growth: The company’s assets increased from ₹352.12 crore to ₹381.76 crore.
- Historical Context: The table also includes data from the financial year ending March 31, 2023, where the company recorded a loss of ₹2.11 crore, highlighting the turnaround in its financial performance in the subsequent years.
KPI
- ROE (Return on Equity): The company has a return on equity of 12.42%.
- ROCE (Return on Capital Employed): The return on capital employed is 13.72%.
- Debt/Equity: The debt-to-equity ratio is 2.02.
- RoNW (Return on Net Worth): The return on net worth is 10.89%.
- PAT (Profit After Tax) Margin: The company’s PAT margin is 3.86%.
- EBITDA Margin: The EBITDA margin is 22.11%.
- Price to Book Value: The price-to-book value is 3.77.
LINKS
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SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.