Hamps Bio Limited IPO

The IPO opens on 13 Dec 2024 & closes on 17 Dec 2024.

Hamps Bio Limited was originally incorporated under the name 'Hamps Bio Private Limited' at ROC, Gujarat, Dadra and Nagar Haveli on January 02, 2007. Subsequently, the Company status changed to Public Limited and the name of the Company was changed to 'Hamps Bio Limited'. The fresh Certificate of Incorporation was issued on July 12, 2023 by the Registrar of Companies, Ahmedabad. The Company is engaged in the ethical marketing and distribution of pharma formulation products across wide range of dosage including tablets, syrups, capsules, injectables, oil, gel and powder used as medicine and nutrition supplements as well as manufacturing of freeze dried and frozen products in the FMCG industry such as fruits, vegetables, herbs and flowers. The Company is recognized in pharma industry under the brand name 'Hamps' and in freeze-dried and frozen food division through own brand 'FzyEzy'. The Company sell products through more than 50 distributor's network as on March 31, 2024 and E-commerce platform, including Amazon.com, Amazon.ca, Amazon.eu, Flipkart, Jio Mart, Etc. It sell pharma products primarily in 8 States and Union territories and FDFP products primarily in 4 countries and 22 States and Union territories. In year 2007, the Company commenced operating as an ethical pharmaceutical marketing firm, with the network of its distributors in Gujarat region for distribution of pharmaceutical formulation products across therapeutic area's as well as consumer health care product. Further, it procure products with various contract manufacturers who has WHO GMP approved manufacturing plant facility. In 2017, the Company started new business segment of Freeze dried and frozen products in FMCG industry. Company issued and allotted 12,20,000 equity shares of Rs 10 each and raised Rs 6.22 crores by way of its IPO in December 2024. The commercial production at the new freeze drying factory at Bhatpore, Surat became operational from April 2025. The Company commissioned a 350 kVA groundmounted solar power plant for the Ankleshwar unit during the year 2025.

Hamps Bio Limited IPO will close on 17 Dec 2024.

<ul><li>Expert Leadership and Industry Experience driving Strategic Business Growth.</li><li>Distribution Network with Expansive E-Retailing Presence.</li><li>Wide and diversified range of products.</li><li>Diversified, global customer base with long standing relationships.</li><li>Wide Geographical Presence.</li><li>Brand Identity.</li><li>Quality Assurance.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Herrik Shah</td> <td>1355384</td> <td>43.22</td> <td>1355384</td> <td>31.12</td> </tr> <tr> <td>2</td> <td>Shrenik Shah</td> <td>1026341</td> <td>32.73</td> <td>1026341</td> <td>23.56</td> </tr> <tr> <td>3</td> <td>Pallavi Shah</td> <td>147357</td> <td>4.7</td> <td>147357</td> <td>3.38</td> </tr> <tr> <td>4</td> <td>Mitali Shah</td> <td>32000</td> <td>1.02</td> <td>32000</td> <td>0.73</td> </tr> <tr> <td>5</td> <td>Herrik Shah HUF</td> <td>229454</td> <td>7.32</td> <td>229454</td> <td>5.27</td> </tr> <tr> <td>6</td> <td>Shrenik Shah HUF</td> <td>128120</td> <td>4.09</td> <td>128120</td> <td>2.94</td> </tr> <tr> <td>7</td> <td>Alkaben Shah</td> <td>4424</td> <td>0.14</td> <td>4424</td> <td>0.1</td> </tr> <tr> <td>8</td> <td>Mountbaton Shah HUF</td> <td>148920</td> <td>4.75</td> <td>148920</td> <td>3.42</td> </tr> <tr> <td>9</td> <td>Bhavya Shah</td> <td>64000</td> <td>2.04</td> <td>64000</td> <td>1.47</td> </tr> </tbody> </table>

<ul><li>The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.</li><li>The company does not have its own manufacturing facility for pharmaceutical products and the company has to relies on third parties for procuring pharmaceutical products sold by the Company.</li><li>Its existing manufacturing facility for freeze dried and frozen products is concentrated in a single region i.e., Ankelshwar, Gujarat and the inability to operate and grow its business in this particular region may have an adverse effect on its business, financial condition, results of operations, cash flows and future business prospects.</li><li>The company operates in a highly regulated and controlled industry environment. The Company operates under several statutory and regulatory permits, licenses and approvals. The company failures to obtain and/or renew any approvals or licenses in future may have an adverse impact on its business operations.</li><li>The company failures to comply with applicable quality standards may result in product liability claims, which could adversely affect its business, financial condition, cash flows and results of operations.</li><li>The availability of counterfeit drugs, such as those passed off by others as its products, and the introduction of alternative pharmaceutical products due to changes in technology or consumer needs, could adversely affect its goodwill, results of operations, financial results, and business prospects.</li><li>Any disruptions to the supply, or increases in the pricing, of the raw materials and finished products that the company outsource, may adversely affect the supply and pricing of its products and, in turn, adversely affect the company business, cash flows, financial condition and results of operations.</li><li>Its Group Companies has incurred losses in past financial years.</li><li>The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business. </li><li>The company is dependent upon few suppliers for the material requirements of its Freeze dried and Frozen Products business. Further, the company does not have definitive agreements or fixed terms of trade with most of its suppliers. Failures to successfully leverage the company relationships with existing suppliers or to identify new suppliers could adversely affect its business operations. </li><li>The company depends on the success of its relationships with its customers in the company FMCG segment. The company derives a significant part of its revenue from the company top 10 customers and the company does not have long term contracts with these customers. If one or more of such customers choose not to source their requirements from it, the company's business, financial condition and results of operations may be adversely affected.</li><li>Its inability to accurately forecast demand for the company products and manage its inventory may have an adverse effect on the company business, financial condition, results of operations and cash flows.</li><li>Its expansion into new product categories and business verticals and a substantial increase in the number of products offered may expose it to new challenges and more risks.</li><li>The company may have made inaccurate statutory form filings with the RoC in the past and are delayed in filing of other statutory forms with the RoC. Consequently, its may be subject to adverse regulatory actions and penalties for any past or future non-compliance and the company's business, financial condition and reputation may be adversely affected.</li><li>Its insurance coverage may not adequately protect the company against all material hazards, which may adversely affect its business, results of operations and financial condition. </li><li>The company inability to expand or effectively manage its growing distributor network for its pharma business or any disruptions in the company supply infrastructure may have an adverse effect on its business, financial condition and results of operations. If the company fails to retain its relationships with the company distributors, its business, financial condition, cash flows and operations will be adversely affected. </li><li>The Company is dependent on third party transportation providers for the delivery of raw materials and its products. Accordingly, continuing increases in transportation costs or unavailability of transportation services for its products, as well the extent and reliability of Indian infrastructure may have an adverse effect on the Company's reputation, business, financial condition, results of operations and prospects.</li><li>Any shortage, disruption or non-availability of power and water may adversely affect operations and have an adverse impact on its business, results of operations and financial condition.</li><li>A significant portion of its revenues are derived from a few geographical regions and any adverse developments affecting such regions could have an adverse effect on its business, cash flows, results of operation and financial condition.</li><li>Delay/ default in payment of statutory dues and filing of statutory returns by the Company in the past.</li><li>Failures to deal effectively with fraudulent activities on its websites and e-commerce platform would increase the company fraud losses and harm its business and could severely diminish seller and consumer confidence in and use of its services.</li><li>The orders placed by customers may be delayed, modified or cancelled, which may have an adverse effect on its business, financial condition and results of operations.</li><li>Its sales and profitability could be harmed if the company is unable to maintain or improve its brand image. Further any negative publicity with respect to its products could adversely affect the company brand, business, financial condition and results of operations.</li><li>The Company has entered into related party transactions in the past and may continue to enter into related party transactions in the future, which may potentially involve conflicts of interest with the equity shareholders. </li><li>Its success largely depends upon the knowledge and experience of the company Promoters, Directors, its Key Managerial Personnel and Senior Management as well as the company ability to attract and retain personnel with technical expertise. Any loss of its Promoter, Directors, Key Managerial Personnel, Senior Management or the company ability to attract and retain them and other personnel with technical expertise could adversely affect its business, financial condition and results of operations.</li><li>The company depends on skilled personnel and if its unable to recruit and retain skilled personnel, the company ability to operates or grow its business could be affected.</li><li>The company revenues and profitability vary across its business segments, thereby making the company future financial results less predictable.</li><li>The industry in which the company operates is labour intensive and its manufacturing operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.</li><li>Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 76 of this Prospectus, the Company's management will have flexibility in applying the proceeds of the Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.</li><li>The company intend to utilise Rs. 359.00 Lakhs from the Net Proceeds for funding its capital expenditure requirements towards purchase of new machinery, for which the company has not placed any orders or entered into any definitive agreements.</li><li>Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company business, financial condition, results of operations and cash flows.</li><li>Its business also depends on the growth of online commerce industry in India and the company ability to effectively respond to changing user behaviour on digital platforms.</li><li>If the company cannot respond adequately to the increased competition its expect to face, the company will lose market share and its profits will decline, which will adversely affect the company's business, results of operations and financial condition.</li><li>Any increase in interest rates would have an adverse effect on its results of operations and will expose the Company to interest rate risks.</li><li>The Company has allotted Equity Shares during the preceding one year from the date of the Draft Red Herring Prospectus which are lower than the Issue Price.</li><li>The company has taken guarantees from its Promoters/ Promoter Group in relation to debt facilities provided to the company.</li><li>Its Manufacturing Facility and Corporate Office are not owned by it.</li><li>The company inability to manage its growth may disrupt its business and reduce the company profitability.</li><li>If the company fails to acquire new consumers or fails to do so in a cost-effective manner, its may not be able to increase revenue or maintain profitability.</li><li>There may be potential conflicts of interest if its Promoters or Directors get involved in any business activities that compete with or are in the same line of activity as its business operations.</li><li>The Company is subject to foreign exchange control regulations which can pose a risk of currency fluctuations.</li><li>Failures or disruption of the company IT, manufacturing automation systems may adversely affect its business, financial condition and results of operations.</li><li>Its ability to pay dividends will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and other factors.</li><li>Its Promoter and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.</li><li>Employee misconduct including misuse of confidential data and failures to maintain confidentiality of information could harm it and is difficult to detect and deter.</li><li>Industry information included in this Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.</li><li>If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.</li><li>Its Directors, Key Managerial Personnel and Senior Management may have interests other than reimbursement of expenses incurred and normal remuneration or benefits in the Company.</li><li>Information relating to the installed manufacturing capacity, actual production and capacity utilization of its manufacturing facilities included in this Red Herring Prospectus are based on various assumptions and estimates and future production and capacity may vary.</li><li>The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company. </li><li>An investment in the Equity Shares is subject to general risk related to investments in Indian Companies.</li><li>The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price. </li><li>Its Equity Shares have never been publicly traded, and may experience price and volume fluctuations following the completion of the Issue. Further, its Equity Shares may not result in an active or liquid market and the price of the company Equity Shares may be volatile and you may be unable to resell your Equity Shares at or above the Issue Price or at all.</li><li>There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the BSE SME in a timely manner or at all.</li><li>Any future issuance of Equity Shares may dilute your shareholding and sale of its Equity Shares by the company Promoter or other shareholders may adversely affect the trading price of the Equity Shares.</li><li>There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder's ability to sell for the price at which it can sell, equity shares at a particular point in time.</li><li>Investors may be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.</li><li>Significant differences exist between Indian GAAP and other accounting principles, such as US GAAP and IFRS, which may be material to investor's assessments of the Company's financial condition. The company failures to successfully adopt IFRS may have an adverse effect on the price of its Equity Shares. The proposed adoption of IFRS could result in the company financial condition and results of operations appearing materially different than under Indian GAAP.</li><li>Foreign investors are subject to foreign investment restrictions under Indian law that limits its ability to attract foreign investors, which may adversely impact the market price of the Equity Shares.</li></ul>

The Issue type of Hamps Bio Limited is Fixed Price - SME.

The minimum application for shares of Hamps Bio Limited is 2000.

The total shares issue of Hamps Bio Limited is 1220000.

Initial public issue of 12,20,000 equity shares of face value of Rs. 10/- each ("Equity Shares") of Hamps Bio Limited ("The Company" or "The Issuer Company") for cash at a price Rs. 51.00/- per equity share (including a share premium of Rs. 41.00/- per equity share) ("Issue Price") aggregating to Rs. 6.22 crores "(The Issue"), out of which 62,000 equity shares of face value of Rs. 10/- each for a cash price of Rs. 51.00/- per equity share, aggregating to Rs. 0.32 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. issue of 11,58,000 equity shares of face value of Rs. 10/- each at an issue price of Rs. 51.00/- per equity share aggregating to Rs. 5.90 crores (is hereinafter referred to as the "Net Issue"). The issue and the net issue will constitute 28.01 % and 26.58 % respectively of the post issue paid up equity share capital of the company. The face value of the equity shares is Rs. 10/- each and the issue price is 5.10 times of the face value.