Influx Healthtech Ltd. IPO: Key Details

Influx Healthtech

• Influx Healthtech is coming out with an initial public offering (IPO) of 61,00,800 equity shares in a price band Rs 91-96 per equity share.
• The issue will open on June 18, 2025 and will close on June 20, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 9.10 times of its face value on the lower side and 9.60 times on the higher side.
• Book running lead manager to the issue is Rarever Financial Advisors.
• Compliance Officer for the issue is Atul Kumar Ashok Kumar Shukla.

Profile of the company

Influx Healthtech is a Mumbai-based, healthcare focused company specialising in contract manufacturing. Since its inception in 2020, the company has established itself as a reliable Contract Development and Manufacturing Organization (CDMO), offering specialized services to a wide range of clients across various industries.

The company operates manufacturing facilities located in Thane, Maharashtra, covering a total area of around 9,676 square feet, 13,000 square feet, and 14,000 square feet, respectively. These facilities are certified to international quality standards, including GMP (Good Manufacturing Practice), HACCP (Hazard Analysis & Critical Control Points), ISO 22000, and Halal certifications, ensuring adherence to the highest standards of safety, quality and regulatory compliance.

These certifications reflect its adherence to stringent safety, quality, and regulatory compliance standards. Equipped with advanced machinery, a dedicated quality control department, and a skilled workforce, its facilities are designed to meet diverse customer needs efficiently and effectively. Its expertise spans the production of Dietary and Nutritional Supplements, Cosmetics, Ayurvedic/Herbal Products, Veterinary Feed Supplements, Homecare Products, Active Pharmaceutical Ingredients (APIs), and finished dosage forms, including tablets, capsules, and injectables.

Proceed is being used for:

• Funding capital expenditure requirements for setting up of manufacturing facility for nutraceutical division
• Funding capital expenditure requirements for setting up of manufacturing facility for veterinary food division
• Purchase of machineries for homecare and cosmetic division
• General corporate purposes

Industry Overview

The global nutraceutical market is currently estimated at around $400 billion, blending the fields of food, pharmaceuticals, and biotechnology. India stands out as a key player, supported by its rich heritage of traditional knowledge, especially in Ayurveda, and a unique ecosystem that fosters growth in this sector. However, India's share remains under 2% globally, primarily due to a lack of defined industry classification within Indian ministries, limiting targeted sector support. India has also prioritized infrastructure support, with nutraceutical incubation hubs and centers of excellence. NIFTEM-Kundli, Centurion University, and AIC-CSIR-CCMB have developed hubs fostering innovation, while the Kerala government inaugurated the first government-backed Nutraceutical Centre of Excellence in 2024. Through the Department of Commerce, India has showcased its nutraceutical strengths at global trade fairs, enhancing visibility and forging connections with international stakeholders. The collaboration between the Task Force and the Central Board of Indirect Taxes and Customs (CBIC) is working toward a unique HSN code to streamline exports and simplify customs procedures.

India's nutraceutical market is prepped to be a global leader at $4-5 billion. It is expected to grow approximately $18 billion by 2025. The dietary supplements market in India is valued at $3924.44 million in 2020 and reports say that it will reach $10,198.57 million by 2026 that is 22% growth rate year on year. The ongoing pandemic and the rising importance about preventive healthcare has led to the exponential growth of this sector. Indian population has begun to believe in immunity-boosting supplements and has led to a significant shift in buying patterns and market behaviour. Vitamin capsules, chewable tablets and gummies are examples of the open-minded buying behaviour of consumers of healthcare products.

Preventive healthcare has become an important line of defence during the pandemic proving the nutraceuticals sector to be a strong economic partner to the people. Even after the pandemic severity has minimized, nutraceuticals purchases are soaring. The second wave proved that the nutraceutical sector has built and will continue to grow its presence in the market. The global market for nutraceuticals is huge at approximately $117 billion, the Indian nutraceutical industry can step up to combat health issues in India amidst ongoing pandemic and significantly contribute to India’s Gross Domestic Product (GDP). 

Pros and strengths

Diversified product portfolio: The company specializes in contract manufacturing a wide and diverse range of products, designed to cater to a broad spectrum of customer needs and preferences. Its comprehensive product portfolio includes multi-nutritional tablets, dietary supplements, various Ayurvedic products, oral dispersible films, gummy candies, ice sticks, and numerous other innovative items. This wide variety not only demonstrates its commitment to meeting diverse consumer demands but also highlights its ability to adapt and innovate across various market segments.

Formulation development department: The company specializes in contract manufacturing for nutraceuticals, cosmetics, Ayurvedic products, and veterinary formulations. Its Formulation development department is a key driver in creating innovative, market-ready solutions for third-party clients. The team plays a pivotal role in developing a wide range of formulations, ensuring they meet both consumer needs and regulatory standards.

Stringent quality assurance/quality control: The company is committed to maintaining the highest quality across its product offerings. It ensures the excellence of its products through a rigorous quality control mechanism at every stage of the manufacturing process. This approach is crucial to guarantee that its finished products meet the exact requirements of its customers and pass all necessary validations and quality checks. Quality assurance (QA) and quality control (QC) are fundamental to its operations. QC involves rigorous testing to ensure products meet predefined quality standards, while QA focuses on implementing systems and processes to maintain these standards throughout development and manufacturing. This dual focus fosters client trusts and ensures the delivery of high-quality products.

Risks and concerns

Maximum revenue comes from few customers: The company’s top 10 customers contribute 47.89%, 50.10% and 46.29% of its revenue from operation for the financial year ended as on March 31, 2025, March 31, 2024, and March 31, 2023 respectively. Its business operations are highly dependent on its customers and the loss of any of its customers may adversely affect its sales and consequently on its business and results of operations. While it typically has long term relationships with its customers, it has not entered into long term agreements with its customers and the success of its business is accordingly significantly dependent on it maintaining good relationships with its customers and suppliers. The actual sales by the company may differ from the estimates of its management due to the absence of long-term agreements. The loss of one or more of these significant or key customers or a reduction in the amount of business it obtains from them could have an adverse effect on its business, results of operations, financial condition and cash flows.

Geographical constrain: The company’s manufacturing unit, located in Palghar, Thane, Maharashtra, exposes it to risks of geographical concentration. Its success relies on its ability to efficiently manufacture and deliver products that meet customer demand. While it has not encountered significant operational disruptions in the past, its manufacturing facility is vulnerable to various risks, including human error, power outages, equipment breakdowns, supply chain interruptions, inefficiencies in production, obsolescence, loss of services from external contractors, and unforeseen events such as terrorist attacks, acts of war, break-ins, natural disasters, and industrial accidents. If it is forced to shut down its manufacturing unit for an extended period, it would negatively impact its earnings, operational performance, and overall financial position.

High working capital requirements: The company’s business requires significant working capital including in connection with its processing operations, financing its inventory and purchase of raw materials and its development of new products which may be adversely affected by changes in terms of credit and payment. It is required to maintain a high level of working capital because its business activities are characterized by long product development periods and production cycles. Delays in payment under on-going contracts or reduction of advance payments due to lower order intake or inventory and work in progress increases and/or accelerated payments to suppliers, could adversely affect its working capital, lower its cash flows and materially increase the amount of working capital to be funded through external debt financings.

Outlook

Influx Healthtech is a healthcare-focused company specialising in contract manufacturing. The company is a reliable CDMO, providing specialized services to clients in multiple industries. The company has diversified product portfolio. On the concern side, the company is dependent on few numbers of customers for sales and loss of any of this large customer may affect its revenues and profitability. Moreover, the company’s existing manufacturing facility are concentrated in a single region i.e., Palghar, Thane, Maharashtra 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.

The company is coming out with a maiden IPO of 61,00,800 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 91-96 per equity share. The aggregate size of the offer is around Rs 55.52 crore to Rs 58.57 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased by 31.44% from Rs 9,996.51 lakh in the financial year ended March 31, 2024 to Rs 10,485.36 lakh in the financial year ended March 31, 2025 on account of an increase in revenue from Nutraceuticals by 0.61% and other segments by 66.43%. Moreover, the company has reported 20.11% rise in its net profit at Rs 1,336.60 lakh in FY25 as compared to Rs 1,112.80 lakh in FY24.

The company’s growth strategy is focused on expanding its brand presence and enhancing its capabilities within its Nutraceutical, Homecare, Cosmetic, and Veterinary Food Divisions. It aims to drive growth through key initiatives that include expanding its manufacturing facilities and acquiring advanced machinery to cater to the growing demand in these sectors. The Revenues from nutraceuticals Segment for FY 2022-23 was Rs 71.61 crore, which increased to Rs 93.47 crore in FY 2023-24 and further increased to Rs 94.04 crore in FY25 resulting into an increase by 30.52% and 0.61% respectively. These statistics and upward trend have provided justifiable basis to the management to come to conclusion that expanding and new machinery / production lines will help the company to cater larger orders from existing clients and also increase its product portfolio.