Zenith Drugs IPO: Rs 40.68 Crore Issue Opens on February 19
Zenith Drugs IPO
Zenith Drugs IPO: Exploring the Pharmaceutical Horizon
In a significant move within the pharmaceutical sector, Zenith Drugs Limited, headquartered in Indore, Madhya Pradesh, is gearing up to launch its Initial Public Offering (IPO).
The subscription window for this IPO is set to open on February 19, 2024, providing investors with an opportunity to delve into the promising prospects of this pharmaceutical venture.
The IPO, valued at ₹40.68 crore, is scheduled to conclude on February 22, 2024, with a price band fixed at Rs 75-79 per share.
Overview of Zenith Drugs Limited:
Zenith Drugs Limited has carved a niche for itself in the pharmaceutical landscape, with a diverse product portfolio that includes ORS Powder, Liquid Orals, Ointment, Liquid Externals, and Capsules.
Noteworthy is the company’s engagement in third-party manufacturing, catering to esteemed entities like Ajanta Pharma, Biomedical Laboratories, and Zest Pharma.
The leadership of Zenith Drugs Limited is steered by prominent figures in the industry, namely Sandeep Bhardwaj, Bhupesh Soni, and Ajay Singh Dasundi, who collectively bring their expertise to guide the company towards growth and success.
IPO Details and Financial Snapshot:
The Zenith Drugs IPO comprises the issuance of 51.49 lakh new shares, with no offer for sale from existing investors.
The listing of shares is anticipated on NSE SME, set to take place on February 27, 2024. Investors interested in participating in the IPO can bid in lots of 1600 shares.
Greatex Corporate Services Ltd has been appointed as the book running lead manager for the IPO, overseeing the process with diligence.
The registrar for the IPO is BigShare Services Pvt Ltd, and Greatex Share Broking has been designated as the market maker.
Allocation details reveal a thoughtful distribution, with 50 percent of shares reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
This strategic allocation aims to attract a diverse set of investors, ensuring a well-rounded participation in the IPO.
Delving into the financial performance of Zenith Drugs Limited, as of September 30, 2023, the company reported a robust revenue of Rs 69.48 crore.
The net profit stood at Rs 5.39 crore during the same period. Impressively, in the financial year 2022-23, Zenith Drugs demonstrated substantial growth, with a remarkable 24.85 percent increase in revenue and an impressive 64.7 percent rise in net profit.
These financial indicators reflect the company’s resilience and strategic approach, providing a positive outlook for potential investors.
Company Background and Promoters:
Founded in Indore, Madhya Pradesh, Zenith Drugs Limited has steadily evolved to become a noteworthy player in the pharmaceutical sector.
The company’s commitment to quality and innovation has propelled its growth, earning the trust of clients through its diverse product offerings.
The trio of Sandeep Bhardwaj, Bhupesh Soni, and Ajay Singh Dasundi spearheads Zenith Drugs Limited as its promoters.
Their collective vision and strategic leadership have been instrumental in steering the company toward its current standing.
The promoters bring a wealth of experience and industry insight, further solidifying Zenith Drugs as a reliable and visionary pharmaceutical entity.
Product Portfolio and Third-Party Manufacturing:
Zenith Drugs Limited boasts a comprehensive product portfolio, catering to various medical needs. From ORS Powder to Liquid Orals, Ointments, Liquid Externals, and Capsules, the company addresses a wide spectrum of pharmaceutical requirements.
This diversified product range not only contributes to the company’s revenue streams but also positions it as a versatile player in the market.
Furthermore, Zenith Drugs is actively involved in third-party manufacturing, providing services to pharmaceutical giants such as Ajanta Pharma, Biomedical Laboratories, and Zest Pharma.
This strategic collaboration not only enhances the company’s revenue but also establishes it as a reliable partner in the pharmaceutical manufacturing ecosystem.
IPO Logistics and Lot Size:
Investors eyeing participation in the Zenith Drugs IPO should take note of the lot size, set at 1600 shares per bid. This allows for flexibility in investment choices, accommodating both institutional and retail investors.
The meticulous orchestration of the IPO is evident in the choice of Greatex Corporate Services Ltd as the book running lead manager.
Their expertise and market understanding make them pivotal in ensuring a seamless and successful IPO process. BigShare Services Pvt Ltd, as the registrar, plays a crucial role in the administrative aspects, ensuring accurate record-keeping and investor communication.
Greatex Share Broking, the appointed market maker, contributes to the liquidity and stability of the market, further enhancing the attractiveness of Zenith Drugs IPO to potential investors.
Allocation Strategy:
The allocation strategy for the Zenith Drugs IPO reflects a thoughtful distribution aimed at creating a balanced investor base.
The reservation of 50 percent of shares for qualified institutional buyers speaks to the company’s desire to attract institutional investment, bringing in the support and confidence of seasoned players in the market.
The allocation of 35 percent for retail investors acknowledges the importance of individual participation, providing an avenue for small investors to be part of the growth story.
The remaining 15 percent earmarked for non-institutional investors adds a layer of diversity to the investor base, fostering a well-rounded and inclusive IPO.
Financial Performance and Growth Trajectory:
A crucial aspect for potential investors to consider is the financial performance and growth trajectory of Zenith Drugs Limited. As of September 30, 2023, the company reported a robust revenue of Rs 69.48 crore, indicating a steady and substantial income stream.
The net profit during the same period stood at Rs 5.39 crore, highlighting the company’s ability to convert revenue into profit effectively.
The financial year 2022-23 witnessed an impressive growth trajectory for Zenith Drugs. The revenue increased by 24.85 percent, showcasing the company’s ability to expand its market presence and capture new opportunities.
Equally noteworthy is the substantial 64.7 percent rise in net profit, underscoring the company’s operational efficiency and financial acumen.
These financial indicators paint a positive picture for Zenith Drugs Limited, signaling its resilience and strategic positioning in a competitive market.
Investors keen on participating in the IPO may find these growth metrics compelling, adding to the overall attractiveness of Zenith Drugs as an investment opportunity.
Final Remarks:
In conclusion, the Zenith Drugs IPO presents a compelling investment opportunity within the pharmaceutical sector.
Backed by a diversified product portfolio, third-party manufacturing partnerships with industry leaders, and a robust financial performance, Zenith Drugs Limited stands poised for growth.
The IPO details, including the price band, lot size, and allocation strategy, reflect a well-thought-out approach to attract a diverse set of investors.
The leadership of Sandeep Bhardwaj, Bhupesh Soni, and Ajay Singh Dasundi adds credibility and strategic vision to the company.
Investors looking to participate in the Zenith Drugs IPO have an opportunity to align with a company that not only demonstrates financial strength but also plays a vital role in the pharmaceutical ecosystem.
As the subscription window opens on February 19, 2024, market participants can assess the prospectus and make informed decisions regarding their participation in this significant IPO within the pharmaceutical domain.
