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30 April 2024

Zenith Drugs Limited IPO

Zenith Drugs Ltd is specialised in manufacturing high quality and affordable medicines to support the patients in need. Zenith offers a wide range of formulations in various forms such as ORS Powder, Liquid Oral, Ointments, Creams, Gels and Liquid Externals, Capsules, Tablets. Zenith is enjoying respectable market share through its 100% owned subsidiaries Biozen Healthcare and Biogenesis Corporation in India. Zenith has gained expertise in manufacturing oral rehydration salt and presently one of the largest manufacturers of ORS sachets in central India. The quality of their product has been trusted by Ajanta Pharma, Micro Labs, May & Bakers, Troikaa etc. and recognized by more than 10 states of the Indian government as consistent suppliers.

Zenith Drugs IPO is a book-built issue of Rs 40.68 crores. The issue is entirely a fresh issue of 51.49 lakh shares.Zenith Drugs IPO price band is set at ₹75 to ₹79 per share. The minimum lot size for an application is 1600 Shares. Gretex Corporate Services Limited is the book running lead manager of the Zenith Drugs IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for Zenith Drugs IPO is Gretex Share Broking.

Zenith Drugs IPO Overview

Detail	Description
IPO Date	February 19, 2024 to February 22, 2024
Listing Date	February 27, 2024
Face Value	₹10 per share
Price Band	₹75 to ₹79 per share
Lot Size	1600 Shares
Total 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 Gretex Share Broking

Zenith Drugs IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Monday, February 19, 2024
IPO Close Date	Thursday, February 22, 2024
Basis of Allotment	Friday, February 23, 2024
Initiation of Refunds	Monday, February 26, 2024
Credit of Shares to Demat	Monday, February 26, 2024
Listing Date	Tuesday, February 27, 2024
Cut-off time for UPI mandate confirmation	5 PM on February 22, 2024

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

Investor Category	Shares Offered
Anchor Investor Shares Offered	1,288,000 (25.02%)
Market Maker Shares Offered	852,800 (16.56%)
QIB Shares Offered	859,200 (16.69%)
NII (HNI) Shares Offered	644,800 (12.52%)
Retail Shares Offered	1,504,000 (29.21%)
Total Shares Offered	5,148,800 (100%)

Zenith Drugs IPO Promoter Holding

Share Holding Pre Issue	100.00%
Share Holding Post Issue	69.98%

Zenith Drugs IPO Anchor Investors Details

Bid Date	February 16, 2024
Shares Offered	1,288,000
Anchor Portion Size (In Cr.)	10.18
Anchor lock-in period end date for 50% shares (30 Days)	March 24, 2024
Anchor lock-in period end date for remaining shares (90 Days)	May 23, 2024

Company & Financials

The company was incorporated in 2000, Zenith Drugs Limited is a pharmaceutical company specialising in manufacturing and trading high-quality, affordable medicines, including generic drugs. Since its inception the company has focused on building a strong foundation and laying the groundwork for its future growth and success. With dedication and strategic planning, it managed to establish a reputable presence in the pharmaceutical industry. With a passion to set high standards of services, the company has always taken all measures to scale up as and when required only to deliver the best. It works diligently and has a wide range of products to cater to every need and to reach the client sensitivity and centricity. Currently, the Company is having FDA approval of more than 600 Products from the Food & Drugs Administration. Out of which, 325 products are being Manufactured Regularly.

Zenith Drugs Limited Financial Information

Period Ended	30 Sep 2023	31 Mar 2023	31 Mar 2022
Assets	11,249.04	9,793.83	6,858.47
Revenue	6,948.43	11,569.65	9,266.63
Profit After Tax	539.38	515.29	312.86
Net Worth	2,264.96	1,724.42	1,209.09
Reserves and Surplus	1,064.96	1,684.42	1,169.09
Total Borrowing	2,902.81	2,605.03	1,880.86
Amount in ₹ Lakhs

Key Performance Indicator

KPI	Values
ROE	35.13%
ROCE	37.29%
Debt/Equity	1.51
RoNW	29.88%
P/BV	5.5

	Post IPO	Pre IPO
EPS (Rs)	4.29	6.29
P/E (x)	18.4	12.56

Objectives of Zenith Drugs IPO

The Company intends to utilise the Net Fresh Issue Proceeds for the following Objectives:

● Purchase of Machinery & Equipment for Setting up a New Unit.
● Existing Manufacturing Block Upgradation.
● Working Capital Requirements.
● General Corporate Purposes.

Zenith Drugs Limited IPO Review

The company is in the pharma business with manufacturing and trading activities. It posted growth in its top lines for the reported periods, but sudden boost in its bottom lines from FY23 onwards raised eyebrows and concern over its sustainability. Based on FY24 annualised super earnings, the issue appears fully priced. Well-informed investors may park moderate funds for the medium term rewards.

FAQs for Zenith Drugs IPO

What is Zenith Drugs Limited IPO 2024?

Zenith Drugs Limited IPO 2024 is a book-built issue of Rs 40.68 crores. The issue is entirely a fresh issue of 51.49 lakh equity shares. The price band is decided at Rs 75 to Rs 79 per share. The minimum amount of investment required for retail category investors is Rs 1, 26,400.
When will Zenith Drugs Ltd IPO open for subscription?

The IPO subscription window is from February 19, 2024, to February 22, 2024.
What Is The Allotment Date Of The Zenith Drugs IPO?

The allotment date of Zenith Drugs IPO is February 23, 2024.
When will Zenith Drugs Ltd list on exchanges?

Zenith Drugs Ltd will be listed on the NSE Emerge on Tuesday, February 27, 2024.
What minimum lot size can retail investors subscribe to?

The lot size for the IPO will be 1,600 shares per lot.