Subscribe to Claris Lifesciences IPO: Nirmal Bang

MUMBAI: Nirmal Bang has recommended investors to ‘Subscribe’ to the initial public offering of Claris Lifesciences. The company has entered the primary markets by offering shares in the price band of Rs 278-293 per share.

“We believe that the company has selected a niche opportunity for itself and has proven its credentials in it. It has 1100 global registrations and is one of the leading players in injectables segment in emerging markets. It is trying to foray in regulated markets which hold 90% of global injectable market.

We believe that despite some hiccups (USFDA regulatory issue) Claris Lifesciences holds a promising future. Further deal with Pfizer boosts the confidence in company’s strong product pipeline. Given the high growth market, high margin-low competition scenario and company’s focus on profitability than scale, we are positive on the company’s outlook,” the report said.

The company plans to use the proceeds to set-up new plant comprising small volume parentals line, a PVC bag line, a non-PVC bag line, and a fat emulsion line, a new manufacturing line for propofol and other fat emulsion products at existing plant, construction of R&D unit and repayment of loan.