Quest Laboratories
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 May 2024 – 17 May 2024
- Listing date
- 23 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹97 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹43.16 Cr
- Market cap at offer price
- ₹159 Cr
- Promoter holding
- 90.36% → 65.82% pre-issue → post-issue
- ISIN
- INE0TNW01017
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- Plot No.45, Sector III, Pithampur Industrial Area, Pithampur, Madhya Pradesh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 12,36,000 | — | — |
| Market maker | 2,28,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹97
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,16,400 |
| S-HNI (min) | 2 | 2,400 | ₹2,32,800 |
| S-HNI (max) | 8 | 9,600 | ₹9,31,200 |
| B-HNI (min) | 9 | 10,800 | ₹10,47,600 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.21 | 6.31 |
| P/E (×) | 23.04 | 15.37 |
| Price to book (×) | 4.59 | — |
| Market cap | — | ₹159 Cr |
Key performance indicators
- Return on net worth
- 34.03%
- ROCE
- 41.86%
- Debt / equity
- 0.20
- PAT margin
- 12.48%
- NAV per share
- ₹21.11
- Price to book
- 4.59
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Quest Laboratories
Quest Laboratories Limited is an Indian pharmaceutical manufacturing company incorporated on June 1, 1998, and converted to a public limited company on January 23, 2024. The company is engaged in the business of manufacturing pharmaceutical formulations across a broad spectrum, including antibiotics, antimalarials, antispasmodics, anti-inflammatories, antiemetics, respiratory medications, diabetes treatments, antidepressants, and more. These formulations are available in various forms such as tablets, liquid orals, oral dry powders, oral powders (ORS), ointments, and external liquids. The company's products fall under the trademark 'Quest Laboratories Limited' and are classified into ethical drugs, generic drugs, and over-the-counter drugs (OTC). The company has a manufacturing facility situated at Pithampur, Indore, Madhya Pradesh, and is looking to expand by establishing a new oncology section for injectable formulations.
Company Analysis
from RHPQuest Laboratories Limited manufactures pharmaceutical formulations including antibiotics, antimalarials, antispasmodics, anti-inflammatories, antiemetics, respiratory medications, diabetes treatments, and antidepressants in ethical, generic, and over-the-counter formats across multiple dosage forms.
Quest Laboratories Limited is an Indian pharmaceutical manufacturing company incorporated on June 1, 1998, and converted to a public limited company on January 23, 2024. The company is engaged in the business of manufacturing pharmaceutical formulations across a broad spectrum, including antibiotics, antimalarials, antispasmodics, anti-inflammatories, antiemetics, respiratory medications, diabetes treatments, antidepressants, and more. These formulations are available in various forms such as tablets, liquid orals, oral dry powders, oral powders (ORS), ointments, and external liquids. The company's products fall under the trademark 'Quest Laboratories Limited' and are classified into ethical drugs, generic drugs, and over-the-counter drugs (OTC). The company has a manufacturing facility situated at Pithampur, Indore, Madhya Pradesh, and is looking to expand by establishing a new oncology section for injectable formulations.
Objects of the Issue
- Funding of capital expenditure towards purchase of plant and machineries for expansion at the existing manufacturing facility ₹2,600.00 Lakhs p.86
- Funding Working Capital Requirements of our Company ₹1,000.00 Lakhs p.86
- General corporate purposes [●] (not exceeding 25% of Net Proceeds) p.86
Issue Structure
- Total Issue
- Up to 44,49,600 Equity Shares aggregating up to [●] Lakhs
- Fresh Issue
- Up to 44,49,600 Equity Shares aggregating up to [●] Lakhs
- Offer for Sale
- N.A
- Price Band
- ₹ [●] to ₹ [●] per Equity Share
- Lot Size
- [●] Equity Shares
- Face Value
- ₹10/- each
Business Model
The company manufactures pharmaceutical formulations on a purchase order basis for customers, primarily government institutions and traders. Revenue is earned from the sale of pharmaceutical products in multiple dosage forms. The company generates a significant portion of revenue from government institutions (77.91% as of December 31, 2023), though it also serves private customers. The company does not have long-term agreements with most customers except government contracts and typically sources raw materials from multiple suppliers without long-term contracts.
Business Segments
SWOT Analysis
- • Established pharmaceutical manufacturing with multi-product capability(p.21)
- • Significant revenue concentration from government institutions(p.38)
- • Consistent revenue and profit growth trajectory(p.62)
- • Improved operational efficiency with rising EBITDA margins(p.97)
- • Promoter conviction in manufacturing quality standards compromised(p.30)
- • High concentration of revenue from top 10 customers creates dependency risk(p.39)
- • Lack of long-term contracts with customers(p.39)
- • Single manufacturing facility concentration(p.37)
- • Dependence on limited suppliers for raw materials(p.38)
- • Negative cash flows from investing and financing activities(p.40)
- • Past litigation on product quality standards(p.35)
- • Leased manufacturing facility without ownership(p.40)
- • Expansion into injectable pharmaceuticals and oncology segment(p.88)
- • Growing Indian pharmaceutical market with expanding domestic consumption(p.122)
- • Strong global demand for Indian generics and affordable medicines(p.121)
- • Government support through production-linked incentive schemes(p.109)
- • Rising healthcare demand from increasing government procurement(p.38)
- • Regulatory scrutiny on pharmaceutical quality and manufacturing standards(p.36)
- • Intense price competition in generic pharmaceutical market(p.39)
- • Potential supply chain disruptions and raw material price volatility(p.38)
- • Government price controls on pharmaceutical products(p.47)
- • Regulatory uncertainty and compliance requirements for new manufacturing standards(p.47)
- • Customer concentration risk from government procurement delays(p.91)
- • Slowdown in Indian economic growth affecting pharmaceutical demand(p.55)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Anil Kumar Sabarwal | Promoter | 85.17% | 62.04% |
| Ms. Tejaswini Sabarwal | Promoter | 3.41% | 2.48% |
| Mr. Vinayak Sabarwal | Promoter Group | 1.78% | 1.30% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.