Zenith Drugs IPO: Unlocking Opportunities in Pharma Outsourcing

Discover the promising investment opportunity with Zenith Drugs IPO. Learn about the IPO date, price band, lot size, and more. Dive into the financials and growth prospects of Zenith Drugs Limited in the pharmaceutical outsourcing sector.

Introduction

Zenith Drugs Limited is set to revolutionize the pharmaceutical outsourcing industry with its upcoming Initial Public Offering (IPO). This detailed guide provides insights into the IPO’s key details, financial performance, and the potential it holds for investors.

Key IPO Details

IPO Date

  • Start: February 19, 2024
  • End: February 22, 2024

Listing Date

  • Tentative: February 27, 2024

Price Band

  • ₹75 to ₹79 per share

Lot Size

  • 1600 Shares

Total Issue Size

  • 5,148,800 shares (₹40.68 Cr)

Issue Type

  • Book Built Issue IPO

Listing At

  • NSE SME

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Financial Overview

Pre and Post-IPO Shareholding

  • Pre-Issue: 100%
  • Post-Issue: 69.98%

Market Capitalization

  • ₹135.48 Cr

Key Performance Indicators

  • ROE: 35.13%
  • ROCE: 37.29%
  • Debt/Equity: 1.51
  • RoNW: 29.88%
  • P/BV: 5.5

Zenith Drugs IPO Objectives

The company plans to utilize the funds for:

  1. Purchase of Machinery & Equipments for Setting up New Unit
  2. Existing Manufacturing Block Upgradation
  3. Working Capital Requirements
  4. General Corporate Purposes

About Zenith Drugs Limited

Founded in 2000, Zenith Drugs specializes in manufacturing and trading high-quality, affordable medicines. With over 600 FDA-approved products, the company follows WHO-GMP guidelines and holds ISO 9001:2015 certification. The product portfolio includes ORS Powder, Liquid Orals, Ointments, Liquid Externals, and Capsules.

Zenith Drugs IPO: A Strategic Move

The IPO comes at a time when Zenith Drugs reports a 24.85% revenue increase and a 64.7% rise in profit after tax between March 31, 2022, and March 31, 2023. The market capitalization stands at ₹135.48 Cr, reflecting strong financial health.

Investment Insights

With a forward P/E ratio of approximately 8.78X, Zenith Drugs IPO offers an attractive proposition in the pharma outsourcing vertical. Investors can explore the potential of the stock in a dynamic market while considering the competitive landscape.

Key Dates to Remember

  • IPO Opening Date: February 19, 2024
  • IPO Closing Date: February 22, 2024
  • Listing Date: February 27, 2024

Conclusion

Zenith Drugs IPO presents an enticing opportunity for investors seeking exposure to the pharmaceutical outsourcing sector. Consider the robust financials, growth indicators, and the company’s strategic objectives before making an informed investment decision. Stay tuned for the latest updates on this exciting IPO.

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