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Zenith Drugs, a pharmaceutical company established in the year 2000, has marked a significant milestone with its IPO listing on the NSE SME platform.
The company specializes in the manufacturing of a diverse range of pharmaceutical products, including ORS Powder, Liquid Orals, Ointments, Liquid Externals, and Capsules.
The IPO, which opened for subscription from February 19-22, witnessed overwhelming demand from investors, resulting in a subscription rate exceeding 179 times.
The IPO, with a total size of Rs 40.68 crore, saw a strong response across various investor categories.
Qualified Institutional Buyers (QIB) subscribed 106.72 times, Non-Institutional Investors (NII) subscribed 368.77 times, and retail investors subscribed 139.28 times.
The issue comprised 51,48,800 new shares with a face value of Rs 10 each.
The proceeds from the IPO will be utilized for the purchase of machinery and equipment for new units, upgrading existing manufacturing blocks, meeting working capital requirements, and general corporate purposes.
Investors who participated in the IPO were offered shares at a price of Rs 79. The stock made a remarkable debut on the NSE SME platform, opening at Rs 110, translating to a listing gain of 39 percent for IPO investors.
However, the shares experienced a decline post-listing, reaching the lower circuit at Rs 104.50.
The closing price settled at this level, resulting in IPO investors still enjoying a 32 percent profit.
Zenith Drugs, with the approval of more than 600 products by the Food and Drug Administration (FDA), has a diversified product portfolio.
Out of these, 325 products are currently under production. The company’s products are not only popular domestically but also have a presence in international markets.
In the financial year 2023, Zenith Drugs demonstrated robust financial performance, with its net profit increasing from Rs 3.13 crore to Rs 5.15 crore on an annual basis.
Similarly, its revenue witnessed growth from Rs 92.67 crore to Rs 115.70 crore.
As of the first half of the current financial year 2023-24 (April-September 2023), Zenith Drugs continued its positive trajectory, achieving a net profit of Rs 5.39 crore and generating revenue amounting to Rs 69.48 crore.
This strong financial performance reflects the company’s resilience and growth potential in the pharmaceutical sector.
Investors and stakeholders are closely watching Zenith Drugs as it navigates the dynamic landscape of the pharmaceutical industry.
Source:
Zenith Drugs IPO Listing: Stock list at 39% Premium over IPO price
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