Curis Lifesciences IPO opens for subscription. Check GMP and other details before investing

Introduction

Curis Lifesciences, an Indian pharmaceutical company, launched its Rs 27.5 crore SME IPO for public subscription on November 7, 2023. This offers investors an opportunity to participate in India's expanding contract manufacturing and exports-led pharma sector. The IPO is a book-built issue entirely comprising a fresh issue of 21.5 lakh shares, with the issue price band set between Rs 120 and Rs 128 per share.

Key Takeaways

• Curis Lifesciences' SME IPO opened on November 7 and will close on November 11, with shares scheduled to list on the NSE SME platform on November 14.
• The IPO is priced at Rs 120-128 per share, requiring a minimum investment of Rs 2.56 lakh for 2,000 shares for Indian retail investors.
• The company operates in India's growing pharmaceutical contract manufacturing and exports segment, aligning with broader economic trends.
• Curis Lifesciences secured Rs 7.81 crore from anchor investors prior to the public subscription opening, indicating early institutional interest.

Company Overview

Curis Lifesciences is an Indian pharmaceutical company primarily engaged in the development, manufacturing, and marketing of a range of pharmaceutical products. The company caters to both domestic and international markets, leveraging India's position as a global pharmaceutical hub. A significant part of its operations is based on a contract manufacturing, or loan-licence, model, where it produces drugs for other companies. Additionally, Curis Lifesciences also develops and produces pharmaceutical products under its own proprietary brands, diversifying its revenue streams within the industry.

Market Analysis

The Curis Lifesciences IPO presents an entry point into India’s dynamic pharmaceutical sector, specifically focusing on the contract manufacturing and exports-led segments. India has emerged as a significant player in global pharmaceutical manufacturing, often referred to as the "pharmacy of the world." The contract manufacturing segment benefits from global pharmaceutical companies seeking cost-effective and high-quality production partners, while the exports segment capitalizes on the worldwide demand for affordable generic drugs and specialized formulations. This broader market context underpins the potential for companies operating within this space.

Further reading: Lenskart IPO final day update: Subscribed over 20 times – Check GMP and key details.

Valuation Analysis

The Curis Lifesciences IPO has a total issue size of Rs 27.5 crore. The shares are offered within a price band of Rs 120 to Rs 128 per share. Prior to the public subscription, anchor investors were allotted 6.1 lakh shares at the upper price band of Rs 128 per share, contributing Rs 7.81 crore to the issue. Specific traditional valuation metrics such as the Price-to-Earnings (P/E) ratio or Price-to-Book (P/B) ratio, which are commonly used for assessing a company's financial health and value, were not disclosed in the provided material. Similarly, key financial performance indicators like revenue, profit, or debt levels for Curis Lifesciences were not made public.

Risk Assessment

Investing in IPOs, particularly those on the SME platform, carries inherent risks. For Curis Lifesciences, a notable detail is the lock-in period for anchor investor shares. Half of these shares will be locked in until December 12, while the remaining half will be under a lock-in until February 10, 2026. This staggered lock-in period can influence trading dynamics post-listing as institutional investors gain the ability to liquidate their holdings. Beyond this, specific regulatory or execution risks pertinent to Curis Lifesciences were not detailed in the available information. Investors should also be aware that the Grey Market Premium (GMP), often considered by Indian retail traders as an indicator of pre-listing demand, was not discussed in the provided research.

Investment Perspective

The Curis Lifesciences IPO offers an opportunity for investors to participate in India's expanding pharmaceutical contract manufacturing and export market. This sector benefits from robust global demand and India's competitive manufacturing advantages. The strong backing from anchor investors, who committed to Rs 7.81 crore before the public launch, suggests a degree of institutional confidence in the issue. However, potential investors should carefully consider the nature of an SME platform listing, which may have different liquidity characteristics compared to mainboard listings, and the minimum investment requirement of Rs 2.56 lakh.

Further reading: Emmvee Photovoltaic Power to launch Rs 2,900 crore IPO on Nov 11. Check price band here.

Execution Guardrails

1. Market scanning: Continuously monitors regulatory filings, financial news, and sentiment to highlight actionable IPO events.
2. AI risk and potential returns analysis: Benchmarks fundamentals, valuations, and demand indicators to quantify upside versus risk.
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• PortoAI helps Indian retail investors identify and track new IPOs in the market through automated scanning.
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Sources

• Curis Lifesciences IPO opens for subscription. Check GMP and other details before investing (economictimes.indiatimes.com; date visible on page) — https://economictimes.indiatimes.com/markets/ipos/fpos/curis-lifesciences-ipo-opens-for-subscription-check-gmp-and-other-details-before-investing/articleshow/125148042.cms

Disclaimer: Educational content, not investment advice.