Introduction about Zenith Drugs Limited SME IPO
Zenith Drugs Limited is a pharmaceutical company based in India, specializing in the manufacturing and marketing of generic formulations. They offer a wide range of affordable medicines across various therapeutic segments. The company has witnessed consistent growth in recent years, driven by increasing demand for generic drugs and expansion into new markets.
Zenith Drugs Limited IPO Details:
This is a fresh issue IPO of 51.49 lakh shares, amounting to ₹40.68 crore. The funds raised will be used for capacity expansion, working capital requirements, and brand building initiatives.
Zenith Drugs Limited IPO Subscription Dates: February 19, 2024 – February 22, 2024 Allotment Date: February 23, 2024 (tentative) Listing Date: February 27, 2024 (tentative) Exchange Listing: NSE SME
Issue Details:
- Face Value: ₹10 per share
- Price Band: ₹75 – ₹79 per share
- Market Lot: 1,600 shares
Zenith Drugs Limited Company Financials:
- Revenue Growth: 55% (past 3 years)
- Profit Growth: 70% (past 3 years)
- Profit Margin: 4.5% (latest year)
- Debt-to-Equity Ratio: 0.8 (latest year)
- P/E Ratio: N/A (not listed)
- EPS: N/A (not listed)
Zenith Drugs Limited SME IPO Risks and Concerns:
- The company operates in a highly competitive market with established players.
- Dependence on a limited number of products and therapeutic segments.
- Regulatory changes in the pharmaceutical industry could impact profitability.
Zenith Drugs Limited IPO GMP Analysis:
What is GMP? Grey Market Premium (GMP) is an unlisted indicator of the expected price of an upcoming IPO in the unofficial market.
Current GMP: ₹5 per share (as of February 20, 2024)
GMP Trend: Stable
Factors Influencing GMP: Market sentiment, demand for the IPO, company fundamentals, and overall economic conditions.
GMP Disclaimer: GMP is not an official indicator and may not reflect the actual listing price.
Overall Review:
Zenith Drugs Limited IPO appears to be a moderately attractive option for investors seeking exposure to the growing generic pharmaceuticals market in India. The company has witnessed strong financial performance and has a clear growth strategy. However, investors should consider the risks associated with the competitive landscape and regulatory environment before investing.
Please note: This information is for informational purposes only and should not be considered as investment advice. Please consult with a qualified financial advisor before making any investment decisions.