Zenith Drugs (NSE SME)

Feb 19, 2024 - Feb 22, 2024

Price ₹75 - ₹79
Premium ₹35
Lot size 1600
Allotment Feb 23, 2024
Listing Feb 27, 2024

Category Lot(s) Qty Amount Reserved
Retail 1 1600 126400 940
HNI 2 3200 252800 403

Last updated on 22-Feb-2024 17:00:03

CategoryOfferedAppliedTimes
QIB85920091697600106.72
NIB644800238539200369.94
RETAIL1504000208404800138.57
Total3008000538641600179.07
Retail Apps130253© IPO Premium
HNI Interest Cost per share (7 Days)
@7%
₹39.23
@8%
₹44.84
@9%
₹50.44
@10%
₹56.05
@11%
₹61.65
@12%
₹67.26
About

ANCHOR INVESTORS

Name of the Anchor Investor No. of Equity Shares allocated % of Anchor Amount Allocated (in Crores)
Vikasa India EIF I Fund – Zodiac Global Opportunity Fund 2,11,200 16.40% 1.672
Chanakya Opportunities Fund I 1,28,000 9.94% 1.011
Moneywise Financial Services Pvt. Ltd 1,28,000 9.94% 1.011
Aries Opportunities Fund Limited 2,52,800 19.63% 1.994
Neomile Growth Fund – Series I 1,90,400 14.78% 1.506
Meru Investment Fund PCC – Cell 1 3,77,600 29.32% 2.989

Established in 2000, Zenith Drugs Limited stands as a distinguished pharmaceutical enterprise, dedicated to the production and distribution of top-tier, cost-effective medications, notably generic drugs.

 

Operating in strict accordance with WHO-GMP standards, the company has earned recognition for its unwavering dedication to quality, exemplified by its attainment of the ISO 9001:2015 certification from a reputable EuroUK certification authority.

Zenith Drugs Limited offers a diverse product line encompassing:

 

  1. ORS Powder
  2. Liquid Orals
  3. Ointments

Zenith Drugs IPO Details

Issue Size 5,148,800 shares
(aggregating up to ₹40.68 Cr)
Fresh Issue 5,148,800 shares
(aggregating up to ₹40.68 Cr)
Issue Type Book Built Issue IPO
Listing At NSE SME
Share holding pre issue 12,000,000
Share holding post issue 17,148,800
Market Maker portion 852,800 shares (YES 852800)
Gretex Share Broking

Zenith Drugs IPO Reservation

Investor Category Shares Offered
QIB Shares Offered Not more than 16.69% of the Net Issue
Retail Shares Offered Not less than 29.21% of the Net Issue
NII (HNI) Shares Offered Not less than 12.52% of the Net Issue

Zenith Drugs IPO Lead Manager(s)

  • Gretex Corporate Services Limited

Key Performance Indicator

 

KPI

2023

2022

2021

ROE

35.13%

29.83%

40.73%

ROCE

37.29%

30.08%

36.52%

D/E Ratio

1.51

1.56

1.73

RONW

29.88%

25.96%

33.84%

Basic & Diluted EPS

4.29

2.62

2.52

P/E Ratio

18.4

-

-

P/BV Ratio

5.5

-

-

 

Strength Factors

Experienced Promoters and Management Team: The company benefits from seasoned promoters and a skilled management team, providing strong leadership and strategic direction.

Cost Efficiency: Emphasis on cost efficiency ensures optimal resource utilization, enhancing profitability and competitiveness.

Formulation & Development: Capabilities in formulation and development enable the company to innovate and adapt to changing market needs, fostering product differentiation and growth.

Regulatory Compliance: Adherence to regulatory requirements ensures legal and operational compliance, mitigating risks and enhancing reputation.

Global Reach: The company's global reach expands market opportunities and diversified revenue streams, reducing dependency on specific regions..

 

Risk Factors

Restrictive Financing Conditions: The company operates under restrictive conditions imposed by lenders, necessitating prior written consent for capital structure changes, amalgamation schemes, and borrowing arrangements. This could potentially limit the company's financial flexibility and operational agility from an external viewpoint.

Dependency on Raw Materials and Suppliers: Heavy reliance on major raw materials and a select group of suppliers, without long-term agreements, poses a risk. Inability to secure adequate raw materials at competitive prices may adversely affect the company's business operations and financial health, observed from an external standpoint.

Manufacturing and Quality Control Risks: Any lapses in manufacturing or quality control processes could disrupt operations, tarnish the company's reputation for excellence, and expose it to potential legal liabilities. This could have a detrimental impact on the company's business prospects, cash flows, and financial condition from an external observer's perspective.

Increased Competition: Inadequate response to heightened competition may result in loss of market share and declining profitability. This could negatively affect the company's business performance, operational outcomes, and financial standing as viewed externally.

Delays and Defaults in Customer Payments: Delays or defaults in customer payments could strain working capital and diminish profits, impacting the company's operational efficiency and financial stability from a third-party viewpoint.

 

Company Financials

Zenith Drugs Limited Financial Information (Restated Consolidated)

Zenith Drugs Limited's revenue increased by 24.85% and profit after tax (PAT) rose by 64.7% between the financial year ending with March 31, 2023 and March 31, 2022.

 
Period 30 Sep 2023 Mar 2023 Mar 2022
Assets 11,249.04 9,793.83 6,858.47
Revenue 6,948.43 11,569.65 9,266.63
Profit 539.38 515.29 312.86
Net Worth 2,264.96 1,724.42 1,209.09
Reserves 1,064.96 1,684.42 1,169.09
Borrowing 2,902.81 2,605.03 1,880.86
Amount in ₹ Lakhs

 

Lead Manager(s)

Zenith Drugs IPO Lead Manager(s)

  • Gretex Corporate Services Limited

Zenith Drug IPO Anchor List

Strength
Weakness
Registrar

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