What you must know about Zenith Drugs IPO?
by 5paisa Research Team
13 Feb 2024
Listing Details
- Listing Exchange NSE SME
- Listing Date 27-Feb-24
- IPO Price Range ₹ 75 to ₹ 79
- Listing Price ₹ 110
- Listing Change 39.2%
- Last Traded Price ₹ 61.85
- Current Change -21.7%
Zenith Drugs IPO Details
- Open Date 19-Feb-24
- Close Date 22-Feb-24
- Lot Size 1600
- IPO Size ₹ 40.68 Cr
- IPO Price Range ₹ 75 to ₹ 79
- Min Investment ₹ 120000
- Listing Exchange NSE SME
- Basis of Allotment 23-Feb-24
- Refunds 26-Feb-24
- Credit to Demat Account 26-Feb-24
- Listing Date 27-Feb-24
Zenith Drugs IPO Subscription Status
| Date | QIB | NII | Retail | TOTAL |
|---|---|---|---|---|
| 19-Feb-24 | 0.00 | 0.98 | 3.37 | 1.90 |
| 20-Feb-24 | 3.53 | 2.49 | 9.35 | 6.22 |
| 21-Feb-24 | 3.54 | 7.97 | 19.30 | 12.37 |
| 22-Feb-24 | 106.72 | 368.62 | 138.57 | 178.79 |
Zenith Drugs IPO Synopsis
Zenith Drugs Limited IPO is all set to open from 19th February to 22nd February 2024. The company is engaged in the business of manufacturing and trading pharmaceutical products. The IPO includes a fresh issue of 5,148,800 shares worth ₹40.68 cr. The share allotment date is 23rd February 2024, and the IPO will be listed on 27th February 2024 on the stock exchanges. The price band is ₹75 to ₹79 and the lot size is 1600 shares.
Gretex Corporate Services Limited is the book-running lead manager for this IPO, while Bigshare Services Private Limited is the registrar.
Objectives of Zenith Drugs IPO:
Zenith Drugs Limited plans to utilize the raised capital from the IPO to:
● To upgrade the current manufacturing block.
● To fund the purchase of machinery & equipment to set up a new unit.
● To meet working capital requirements.
● General corporate purposes.
About Zenith Drugs
Established in 2000, Zenith Drugs Limited is engaged in the business of manufacturing and trading pharmaceutical products. The company specializes in making high-quality and affordable Medicines. The company has received FDA approval for 600+ Products.
Zenith Drugs is WHO-GMP compliant, which means that the company follows stringent guidelines set by the World Health Organization. It also has an ISO 9001:2015 certification for quality. The company’s product formulations include ORS Powder, Liquid Orals, Ointments, Liquid Externals, and Capsules.
Zenith receives benefits under the MSME segment from the Government. The company has a presence in India as well as global markets.
Peer Comparison
● Sudarshan Pharma Industries Limited
● Sigachi Industries Limited
For More Information:
Webstory on Zenith Drugs IPO
Zenith Drugs Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 114.51 | 91.65 | 73.40 |
| EBITDA | 9.37 | 6.83 | 7.02 |
| PAT | 5.15 | 3.13 | 3.02 |
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Total Assets | 97.93 | 68.58 | 46.54 |
| Share Capital | 0.40 | 0.40 | 0.40 |
| Total Borrowings | 80.67 | 56.47 | 37.59 |
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | -4.40 | 5.15 | 0.75 |
| Net cash from / (used in) investing activities | 0.10 | -5.24 | -1.43 |
| Net cash flow from / (used in) financing activities | 4.90 | 1.24 | 2.08 |
| Net increase (decrease) in cash and cash equivalents | 0.60 | 1.15 | 1.41 |
Zenith Drugs IPO Key Points
-
Strengths
1. The company has a competitive advantage in terms of cost efficiency.
2. It has extensive F&D departments for formulation.
3. The company has a strong track record of regulatory compliance and quality assurance.
4. It has a well-established international presence.
5. The company has a diverse and well-balanced product portfolio with a well-managed supply chain and scalable business model.
6. It also has strong sales, marketing, and distribution capabilities.
7. Experienced Promoter and management team.
-
Risks
1. The company conducts business activities on a purchase-order basis and therefore doesn’t have long-term agreements.
2. Operates in a highly competitive industry.
3. The revenues are dependent on the demand from the pharmaceutical industry.
4. A significant portion of revenue is dependent on two products i.e., ORS Powder and Liquid Orals.
5. Any adverse publicity regarding products could negatively impact the business.
6. It has reported negative cash flows in the past.
Zenith Drugs
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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Zenith Drugs IPO FAQs
When does the Zenith Drugs IPO opens and closes?
Zenith Drugs IPO opens from 19th February to 22nd February 2024.
What is the size of the Zenith Drugs IPO?
The size of Zenith Drugs IPO is ₹40.68 cr.
How to apply for the Zenith Drugs IPO?
To apply for Zenith Drugs IPO, follow the steps given below:
● Login to your 5paisa account and select the issue in the current IPO section
● Enter the number of lots and the price at which you wish to apply for the Zenith Drugs IPO.
● Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange.
You will receive a mandate notification to block funds in your UPI app.
What is the price band of Zenith Drugs IPO?
The price band of Zenith Drugs IPO is fixed at ₹75 to ₹79 per share.
What is the minimum lot size and investment required for the Zenith Drugs IPO?
The minimum lot size of Zenith Drugs IPO is 1600 shares and the investment required is ₹1,20,000.
What is the allotment date of the Zenith Drugs IPO?
The share allotment date of Zenith Drugs IPO is 23rd February 2024.
What is the Zenith Drugs IPO listing date?
The Zenith Drugs IPO will be listed on 27th February 2024.
Who are the book runners for the Zenith Drugs IPO?
Gretex Corporate Services Limited is the book-running lead manager for Zenith Drugs IPO.
What is the objective of Zenith Drugs IPO?
Zenith Drugs Limited plans to utilize the raised capital from the IPO to:
1. To upgrade the current manufacturing block.
2. To fund the purchase of machinery & equipment to set up a new unit.
3. To meet working capital requirements.
4. General corporate purposes.
Contact Details of Zenith Drugs IPO
Contact Information
Zenith Drugs Limited
K. No. 72 / 5, Village Muradpura
NA Depalpur,
Indore-453001
Phone: +91 8435501867
Email: info@zenithdrugs.com
Website: https://zenithdrugs.com/
Zenith Drugs IPO Register
Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: https://ipo.bigshareonline.com/ipo_status.html
Zenith Drugs IPO Lead Manager
Gretex Corporate Services Limited
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