Zenith Drugs IPO will open for subscription from 19 February 2024. The company aims for an issue size of ₹40.68 Cr through this IPO.
Company Overview
| Full name | Zenith Drugs Limited |
| Sector | Healthcare |
| Industry | Pharmaceutical & Drugs |
| Company Website | https://www.zenithdrugs.com/ |
About Company
Founded in 2000, Zenith Drugs operates as a pharmaceutical manufacturing and trading entity situated in Indore. With a focus on producing superior-quality and cost-effective medicines, the company specializes in both branded and generic pharmaceuticals. The company is WHO-GMP compliant and holds ISO 9001:2015 certification from a respected EuroUK body, showcasing its commitment to quality. Presently, the company holds FDA approval for over 600 products from the Food and Drug Administration. Among these, 325 products are manufactured regularly.
Zenith provides a diverse range of formulations available in various forms, including:
- ORS Powder
- Liquid Orals
- Ointments
- Liquid Externals
- Capsules
The company distributes its products to various countries, including Costa Rica in Central America, the Caribbean and Pacific regions, Malawi, Mauritius, Mozambique, Sudan, Tanzania, Bhutan, Cambodia in Southeast Asia, Tajikistan in the CIS region, Liberia, Sierra Leone, and Conakry in FWA. Zenith participates in third-party manufacturing, commonly referred to as white-label manufacturing, for reputable pharmaceutical companies like Ajanta Pharma, Bio-Medical Laboratories, Zest Pharma, and many others. As of 31 March 2023, the company employs a total of 89 individuals, with 61 on a payroll basis and 28 employees on a contract basis.
The Objectives of the Issue
- Purchase of Machinery & Equipments for Setting up New Unit
- Existing Manufacturing Block Upgradation
- Working Capital Requirements
- General Corporate Purposes.
Zenith Drugs IPO Timetable
| IPO Opening date | 19 February 2024 |
| IPO Closing | 22 February 2024 |
| Basis of Allotment | 23 February 2024 |
| Initiation Refund | 26 February 2024 |
| Credit to Demat Account | 26 February 2024 |
| Listing Date | 27 February 2024 |
Zenith Drugs IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹40.68 Cr – 5,148,800 shares |
| Fresh Issue | ₹40.68 Cr – 5,148,800 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹75 to ₹79 per share |
| Lot size | 1600 Shares |
| Market Maker portion | 852,800 shares |
| Shareholding pre-issue | 12,000,000 |
| Shareholding post-issue | 17,148,800 |
| Listing Exchange | NSE SME |
Zenith Drugs IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1600 | ₹126,400 |
| Retail (Max) | 1 | 1600 | ₹126,400 |
| HNI (Min) | 2 | 3,200 | ₹252,800 |
Zenith Drugs IPO Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Zenith Drugs Financial Performance
| FY 2021** | FY 2022 | FY 2023 | H1 FY 2024 | |
| Revenue | 73.40 | 91.66 | 114.52 | 69.41 |
| Expenses | 68.91 | 88.26 | 108.49 | 61.87 |
| Net income | 3.03 | 3.13 | 5.15 | 5.39 |
Zenith Drugs Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 2.52 | 2.62 | 4.29 |
| PE ratio | – | – | 17.48 – 18.41 |
| RONW (%) | 33.84 | 25.96 | 29.88 |
| NAV | 7.46 | 10.08 | 14.37 |
| ROCE (%) | 36.52 | 30.08 | 37.29 |
| EBITDA (%) | 9.57 | 7.45 | 8.45 |
| Debt/Equity | 1.73 | 1.56 | 1.51 |
Company Promoters
- Mr. Sandeep Bhardwaj
- Mr. Bhupesh Soni
- Mr. Ajay Singh Dassundi
Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | 69.98% |
Zenith Drugs IPO Lead Manager(s)
GRETEX CORPORATE SERVICES LIMITED
Office No. 13, 1st Floor,
New Bansilal Building, Raja Bahadur Mansion,
9-15, Homi Modi Street, Fort, Mumbai– 400001
Phone: +91 96532 49863
Email: info@gretexgroup.com
Website: www.gretexcorporate.com
Zenith Drugs Registrar
BIGSHARE SERVICES PRIVATE LIMITED
S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali
Caves Road, Andheri East, Mumbai – 400 093
Phone: +91 22 6263 8200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com
Zenith Drugs Contact Details
ZENITH DRUGS LIMITED
K. No. 72 / 5, Village Muradpura, NA,
Depalpur, Indore-453001, Madhya Pradesh
Phone: +91 8435501867
E-mail: info@zenithdrugs.com
Website: www.zenithdrugs.com
Zenith Drugs IPO Allotment Status
Zenith Drugs IPO allotment status will be available on Bigshare Services’ website. Click on this link to get allotment status.
Final thoughts
Zenith Drugs IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
