Veeda Clinic Overview and Key Details
**1. Business Overview**
Veeda Clinical Research Ltd., founded in 2004 and headquartered in Ahmedabad, is a leading independent Clinical Research Organization (CRO) in India. Veeda specializes in Bioequivalence (BE) and Bioavailability (BA) studies, clinical trials (Phase I-IV) across therapeutic areas, pharmacovigilance, and data management services, and regulatory consulting for global submissions (USFDA, EMA, ANVISA, etc.). The company operates six clinical research facilities across India with a cumulative capacity of 750+ beds and has a track record of over 4,500 clinical studies, serving clients from North America, Europe, and emerging markets.
**2. Investment Rationale**
The investment rationale for Veeda includes the rising outsourcing by global pharma companies post-COVID creating a Global CRO Opportunity; Veeda's strong regulatory track record with successful audits by USFDA, EMA, WHO, ANVISA, DCGI, and others; a diversified client base working with top 20 global generic and specialty pharma players; high margins business, as clinical research typically enjoys EBITDA margins of 25-30%; and an IPO pipeline, with a DRHP filed with SEBI in March 2024, with listing likely in FY25.
**3. Key Risks**
Key risks include Client Concentration Risk due to significant dependence on a few large pharma clients; Regulatory Risk with the stringent regulatory environment, where non-compliance can result in business disruptions; Currency Fluctuation, as majority revenues are USD-denominated, INR appreciation could impact profitability; and competition from global CROs (like Parexel, ICON, IQVIA) and Indian peers.
**4. IPO Timeline & Exit Options**
The IPO timeline includes a DRHP filed in March 2024 with SEBI. The IPO size is approximately ₹850 Cr., a mix of primary issuance and OFS. The use of funds is earmarked for repayment of debt, expansion of clinical facilities, and inorganic acquisitions. The target IPO timeline is expected in Q3 or Q4 FY25.
**5. UnlistedZone View**
Veeda Clinical Research is well-placed in India's fast-growing CRO sector. Strong regulatory credentials, global client relationships, and expansion plans make it a promising mid-cap pharma services story. Investors must be mindful of regulatory risks, but the sector tailwinds remain favorable. UnlistedZone assigns a "Strong Accumulate" rating and projects a target valuation post-IPO of ₹4,000 - ₹5,000 Cr.
**6. Financials (In Cr.)**
The financials are as follows: Revenue for FY21 was 196, FY22 was 288, FY23 was 409 and FY24 was 388. EBITDA for FY21 was 67, FY22 was 62, FY23 was 103 and FY24 was 53. PAT for FY21 was 63, FY22 was 50, FY23 was 42 and FY24 was -0.3. EPS for FY21 was 17.6, FY22 was 9.46, FY23 was 8 and FY24 was -0.04. Note that the FY24 figures are estimates based on available data.
**7. Shareholding Pattern**
The shareholding pattern is as follows: Others hold 39.65%, Basil Private Limited holds 35.52%, Bondway Investment Inc holds 20.45%, and Sabre Partners AIF Trust holds 4.38%.
**8. Valuation Metrics**
The last deal price was ₹480/share (28 Apr 2025), implied market cap is ₹3024 Cr., P/E Ratio is N/A, Book Value is 168.67, and P/B Ratio is 2.85x. Valuation metrics are based on available market data and may vary.
**9. Disclosures and Data Sources**
Source: SEBI DRHP filings, Company website, Market Reports, UnlistedZone internal research.
