Hindustan Laboratories Limited IPO: Quick Take + IPO Corner Score
Hindustan Laboratories Limited, a pharma company that supplies generic medicines to government healthcare agencies (B2G model), has filed its DRHP with SEBI. Here’s the quick rundown.
About the company: Incorporated in 2017, led by MD Rajesh V. Doshi, who also holds ~99.99% of pre-offer equity. It makes tablets, capsules, syrups, ointments and powders, supplied to government institutions across 27 states and UTs.
The IPO: Fresh Issue of 50 lakh shares + OFS of 91 lakh shares (~1.41 Cr shares total). Price band TBA — our estimate: ₹185–215/share, implying a market cap of ~₹1,015–1,180 Cr.
Financials (₹ Cr):
| FY23 | FY24 | FY25 | |
|---|---|---|---|
| Revenue | 172.3 | 186.4 | 219.7 |
| PAT | 22.3 | 34.1 | 41.3 |
| Net Worth | 103.2 | 137.3 | 178.7 |
FY25 margins: EBITDA ~24.5%, PAT ~18.8%. ROE 26.1%, ROCE 33.1%.
Pros: Steady B2G demand, defensive sector, wide national reach, low-cost generics fit India’s public health push. Cons: Heavily tender-dependent, no retail presence, price band still pending, standard pharma regulatory risk.
Our IPO Score: 62.3/100
We score every IPO across 6 pillars — Use of Proceeds, Offer Structure, Management, Financial Health, Business Moat, and Valuation.
| Pillar | Score |
|---|---|
| Use of Proceeds | 2 / 20 |
| Offer Structure | 3 / 8 |
| Management & Promoters | 14 / 16 |
| Financial Health | 23 / 25 |
| Business Moat | 7 / 10 |
| Valuation* | 13.3 / 21 |
| Total | ~62.3 / 100 |
*Valuation updates once the price band is official.
Verdict: Risky, only if valuation is attractive (our 50–64 band). Financials and management are solid, but a heavy OFS and minimal growth-capex allocation mean most of the raise is a promoter exit, not company expansion — the key thing to watch before applying.
Not investment advice — verify all figures once the official price band is out.
