Zenith Drugs IPO sees strong investor interest: Subscription reaches nearly 105 times on final day, key details inside

The Zenith Drugs IPO subscription closed on Thursday, February 22, with a strong demand from the investors. The total subscription for the public issue reached nearly 105 times on the final day. The investors paced bids for a total of 53,98,14,400 shares compared to 51,48,800 shares on offer.

The ₹40.68-crore book-built issue was open for subscription between February 19 and February 22.

According to the NSE data, the qualified institutional buyers (QIBs) submitted bids for a total of 9,16,97,600 shares against 8,59,200 shares on offer, resulting in a subscription of 106 times. The non-institutional investors (NIIs) segment received the highest bids as the portion was subscribed 369 times with demand for 23,85,39,200 shares compared to 6,44,800 shares on offer. The retail investors segment subscribed 138.5 times with biddings for a total of 20,84,04,800 shares compared to 1,504,000 shares on offer.

The company had reserved 35% of shares for the retail investors and 15% for the non-institutional investors while 50% of the total issue size of Zenith Drugs IPO was reserved for the qualified institutional buyers (QIBs).

The company has appointed Bigshare Services as the registrar of the issue while Gretex Corporate Services is the book-running lead manager of the Zenith Drugs IPO.

Zenith Drugs IPO allotment status

After the subscription closed on February 22, the company is expected to finalise the IPO share allotment status on Friday, February 23. The successful bidders are expected to get the shares transferred to their demat account by Monday, February 26. The refunds for remaining investors may also be initiated the same day. Zenith Drugs shares are expected to be listed on the NSE Emerge platform on Tuesday, February 27.

Zenith Drugs IPO price band, lot size and other details

The Zenith Drugs IPO price band was fixed at ₹75 to ₹79 per equity share. The public issue comprised 51.48 lakh equity shares of face value of ₹10 each. The retail investors were allowed to bid for a minimum lot size of 1,600 shares amounting to ₹1.26 lakh. High net worth investors (HNIs) were eligible to bid for a total of 2 lots, or 3,200 shares, aggregating to a minimum investment of ₹2.52 lakh.

About the company

Indore-based pharmaceutical manufacturing and trading company, Zenith Drugs, specialises in the manufacturing of high-quality and affordable medicines to support patients. The company is also into cost-effective generic medicines.