NSE SME Zenith Drugs kicks off successfully

Shares of Zenith Drugs were quoting at Rs 104.50 on the NSE, a premium of 32.28% compared with the issue price of Rs 79.

The scrip was listed at Rs 110, a premium of 39.24% compared with the initial public offer (IPO) price. The stock is currently frozen at its lower limit of 5% over its listing price.

The counter hit a high of Rs 111 and a low of Rs 104.50. About 15.61 lakh shares of the company changed hands at the counter.

Zenith Drugs' IPO was subscribed 104.84 times. The issue opened for bidding on 19 February 2024 and it closed on 22 February 2024. The price band of the IPO was fixed at Rs 75 to 79 per share.

 

The IPO comprised fresh issue of 51,48,800 shares. The promoter and promoter shareholding diluted to 69.98% from 100% pre-IPO.

The company intends to utilise the fresh issue proceeds for purchase of machinery & equipments for setting up new unit, existing manufacturing block upgradation, working capital requirement and for general corporate purposes.

Ahead of the IPO, Zenith Drugs on 16 February 2024, raised Rs 10.17 crore from anchor investors. The board allotted 12.88 lakh shares at Rs 79 per share to 6 anchor investor.

Zenith Drugs is engaged in the business of manufacturing pharmaceutical products. Zenith Drugs is a pharmaceutical company specializing in manufacturing and trading high-quality, affordable medicines, including generic drugs. Zenith offers a wide range of formulations in various forms such as ORS powder, liquid orals, ointments, liquid externals, capsules. Zenith Drugs specializes in third-party manufacturing, also known as white label manufacturing, for companies such as Ajanta Pharma, Bio Medical Laboratories, and Zest Pharma, among others. As of 31 March 2023, company has 89 employees out of 61 on payroll and 28 on contract basis.

The company recorded revenue from operations of Rs 69.40 crore and net profit of Rs 5.39 crore for the period as on 30 September 2023.

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