Promoter group of Lincoln Pharmaceuticals Ltd, one of India’s leading healthcare companies is gradually increasing their holding in the company. During the FY 2020-21, the promoter group has bought 9.8 lakh shares from the secondary market – at an average price of Rs. 225.6 per share. With this, promoter holding in the company has increased to 37.25% – rise of 4.9% (490 bps) from 32.35% as of 31 March 2020. Rating agency ICRA has recently upgraded the company’s long-term and short-term bank facilities to A and A1 respectively.
The Securities and Exchange Board of India under creeping acquisition allows promoters of a listed company to enhance promoter group holding by 5% in a financial year. Share price of Lincoln Pharmaceuticals Ltd was Rs. 222.6 per share on 30 March 2021. Share price of the company have risen 160% from March 2020 low of Rs. 85 per share and also made a high of Rs. 283 per share.
“We are committed and plan to gradually up the promoter holding ideally to a majority mark over the next 3-5 years. Our company is growing from strength to strength and delivering robust operational and financial performance while maintaining healthy growth in revenue, margins and profitability and expects to continue the growth momentum in the coming years. Our strategic growth initiatives, product and geographical expansion, EU approval and operational efficiency are likely to maximise value for all stakeholders in the near to medium term. The recent upgrade by ICRA for the company’s long-term and short-term ratings further testifies the strong foundation of the group,” said Mr. Mahendra Patel, Managing Director, Lincoln Pharmaceuticals Limited.
Rating agency in its report has stated that the upgrade in ratings takes into account the improvement in the group’s financial risk profile in FY2020 and 9MFY2021, backed by steady growth in scale and margins. The report further states that, Healthy profitability and limited capex outgo have improved the coverage indicators and liquidity, resulting in healthy built up of free cash/liquid investments.
During FY20, the company has become a zero net-debt company. Company has received EU approval and plans to enter the EU markets very soon with its dermatology, gastro and pain management products. Company currently exports to more than 60 countries and plans to expand to 90 plus countries.
For the nine months ended December 2020, the company has posted a net profit of Rs. 48.6 crore as against net profit of Rs. 40.3 crore, growth of 20.7%. Net revenue also grew by 10% Y-o-Y to Rs. 339.8 crore in nine months ended December 2020.