Zenith Drugs IPO is open for subscription: Check price band, issue size and other key details
Upstox
3 min read • Updated: February 19, 2024, 6:07 PM
Summary
The Zenith Drugs IPO price band has been fixed at ₹75-79 apiece. The lot size is 1,600 shares, and Zenith Drugs IPO minimum investment amount is ₹1.26 lakh.
Another small and medium enterprise (SME), Zenith Drugs Ltd is set to tap the primary markets this week as it launches its ₹40.68-crore public issue on Monday.
The Zenith Drugs IPO opened for subscription on February 19 and will close on February 22.
If you are planning to subscribe to the IPO, here are some important details that you should know:
Zenith Drugs Ltd IPO price band and issue size
The Zenith Drugs IPO is a book-built offer that comprises fresh equity issuance of 5.14 million shares of face value of ₹10 each. There is no offer-for-sale (OFS) component in the issue. Shares of the company will list on the NSE SME platform.
The price band of the Zenith Drugs IPO has been fixed at ₹75-79 apiece. The lot size is 1,600 shares. Retail investors need to bid for a minimum of 1,600 shares, aggregating to an application amount of ₹1.26 lakh.
High net worth investors (HNIs), meanwhile, need to bid for a minimum of 2 lots, or 3,200 shares. This translates into an application amount of ₹2.52 lakh.
Zenith Drugs Ltd IPO quota
Zenith Drugs Ltd's IPO share allocation for qualified institutional buyers (QIBs) stands at 50%. In comparison, 35% has been set aside for retail investors. The remaining 15% is reserved for non-institutional investors (NIIs).
Zenith Drugs IPO important dates
The anchor bid date for the Zenith Drugs IPO was Friday, February 16. Bidding of shares for the remaining categories of investors would happen during the IPO subscription period from February 19 to February 22.
The Zenith Drugs IPO share allotment status is likely to be finalised on Friday, February 23. The successful bidders can expect the shares to be credited to their demat accounts on Monday, February 26, with the remaining bidders receiving refunds on the same day.
The Zenith Drugs stock is expected to be listed on Tuesday, February 27, on the NSE Emerge Platform.
Zenith Drugs Ltd IPO purpose and issue managers
According to Zenith Drugs Ltd, the proceeds from the IPO will be primarily used to purchase machinery, set up a new plant, and upgrade the existing manufacturing block. Funds would also be used for working capital requirements and general corporate purposes.
Gretex Corporate Services has been appointed as the book-running lead manager of the Zenith Drugs IPO, whereas Bigshare Services is the registrar of the issue.
About Zenith Drugs and Financials
Incorporated in 2000, Zenith Drugs is an Indore-based pharmaceutical company engaged in the manufacturing and marketing of medicines in various formulations such as ORS powder, liquid oral, ointments, creams, gels and liquid externals, capsules and tablets.
Zenith Drugs manufactures more than 250 molecules and 780 dosage forms in its manufacturing facility in Indore which is designed as per the latest WHO-good manufacturing practices norms.
The company's promoters are Sandeep Bhardwaj, Bhupesh Soni and Ajay Singh Dassundi.
The company’s revenue during 2022-23 grew nearly 25% to ₹115.70 crore compared with ₹92.67 crore in the previous financial year. Profit after tax (PAT) stood at ₹5.15 crore in FY23, up 64.5% from ₹3.13 crore in FY22.
In the current financial year 2023-24, the company’s revenue during the six months ended September 2023 stood at ₹69.48 crore, with a PAT of ₹5.39 crore.
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