Eris Lifesciences makes modest BSE debut, rises 1.5% over issue price

NEW DELHI: Eris Lifesciences on Thursday made a modest debut on BSE, with the stock listing at Rs 612, a 1.49 per cent premium to its issue price of Rs 603.

The IPO, which was sold in Rs 600-603 band during June 16-20, was subscribed 3.29 times.

Analysts noted that at a PE of 36.9 times FY17, Eris’ valuation at the upper band was at a premium to peers but believe Eris may prove good investment opportunity for long-term investors, given the potential, the company has, to deliver higher growth than the industry.

The drug maker develops and manufactures branded pharmaceutical products in select therapeutic areas with higher focus on fast growing chronic portfolio. About 66 per cent of the company's revenue comes from the chronic segment, while 34 per cent is generated by the acute segment. Eris Lifesciences has a formulations facility located in Guwahati.

The company reported a revenue growth of 21 per centr annually over FY13-17, which was better than its peers. EBITDA and PAT during the same period rose 35 per cent and 43 per cent , respectively, on account of lower input costs and operational leverage.