Medicamen Organics IPO: Issue oversubscribed by 600 times led by retail investors

Medicamen Organics Limited’s IPO witnessed a blockbuster response from investors, with the public issue being subscribed 598.34 times by the afternoon on the last day of bidding, Tuesday, June 25. By 2.40 pm, the public issue had attracted bids for over 122 crore shares, surpassing the 20,52,000 shares available.

The retail category showed an overwhelming subscription of 838.28 times, while the Qualified Institutional Buyer (QIB) category was oversubscribed by 79.17 times, and the Non-Institutional Investor (NII) category by 726.85 times.

In the QIB segment, bids were received for more than 4.62 crore shares against the available 5.84 lakh shares. In the NII category, bids were received for over 31.98 crore shares compared to the 4.4 lakh shares on offer. Retail investors showed the strongest interest with bids for a whopping 86.17 crore shares against the available 10.28 lakh shares.

Medicamen Organics IPO price and other details

The Medicamen Organics IPO is valued at ₹10.54 crore and consists entirely of a fresh issue of 31 lakh shares through a book-built process. This includes 1.72 lakh equity shares allocated to the market maker, Giriraj Stock Broking Pvt Ltd.

The price band for the Medicamen Organics IPO was set in the range of ₹32 to ₹34 per piece, with the minimum application lot size being 4,000 shares, requiring a minimum investment of ₹1.36 lakh for retail investors.

High Net Worth Individuals (HNIs) need to invest in a minimum of two lots, equivalent to 8,000 shares, amounting to ₹2.72 lakh. Investors can place bids starting from 4,000 shares and in multiples thereof.

Kfin Technologies Limited is the issue’s registrar and GYR Capital Advisors Private Limited is the book-running lead manager for Medicamen Organics IPO.

Medicamen Organics IPO key dates

The Medicamen Organics IPO opened for bidding on June 21. Following its closure on June 25, the basis of allotment will be finalised on Wednesday, June 26, with the initiation of refunds and the credit of shares to demat accounts scheduled for June 27.

The listing date for shares in Medicamen Organics IPO is slated for June 28, marking the company’s debut on the stock exchange. The issue is slated to be listed on the NSE SME platform.

Medicamen Organics IPO objectives

Medicamen Organics Limited aims to utilise the net proceeds from the IPO for several key objectives. This includes funding expenses for product registration in international markets, updating the plant and increasing production capacity, meeting the company’s working capital requirements and addressing general corporate purposes.

About Medicamen Organics Limited

Medicamen Organics Limited was incorporated in 1995. The company develops, manufactures, and distributes a range of pharmaceutical products, including generic tablets, capsules, oral liquids, ointments, gels, syrups, suspensions, and dry powders. It serves both government sectors (state and central) and private entities as a contract and third-party manufacturer.

The company’s products are marketed across India and internationally in African, CIS, and Southeast Asian countries, including Congo, Benin, Togo, Senegal, Burkina Faso, the Philippines, Myanmar, Mozambique, Burundi, Kyrgyzstan and Kenya, through third-party distributors.

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