Zenith Drugs
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 19 Feb 2024 – 22 Feb 2024
- Listing date
- 27 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹79 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹40.68 Cr
- Market cap at offer price
- ₹135 Cr
- Promoter holding
- 100.00% → 69.98% pre-issue → post-issue
- ISIN
- INE0QWN01013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Gretex Corporate Services Ltd.
- Registered office
- K.No.72 / 5, Village Muradpura, NA Depalpur, 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 | 12,88,000 | — | — |
| Market maker | 8,52,800 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹79
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,26,400 |
| S-HNI (min) | 2 | 3,200 | ₹2,52,800 |
| S-HNI (max) | 7 | 11,200 | ₹8,84,800 |
| B-HNI (min) | 8 | 12,800 | ₹10,11,200 |
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 (₹) | 4.29 | 6.29 |
| P/E (×) | 18.41 | 12.56 |
| Price to book (×) | 5.50 | — |
| Market cap | — | ₹135 Cr |
Key performance indicators
- Return on net worth
- 29.88%
- ROCE
- 37.29%
- Debt / equity
- 1.51
- PAT margin
- 4.50%
- NAV per share
- ₹431.10
- Price to book
- 5.50
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Zenith Drugs
Zenith Drugs Limited (formerly Zenith Drugs Private Limited) was incorporated on November 15, 2000 in Indore, Madhya Pradesh by Late Shri Ramniklal Soni and Mr. Mukesh Jain, and was converted into a public limited company on September 13, 2023. It operates a WHO-GMP certified, ISO 9001:2015-certified manufacturing facility at Village Muradpura, Depalpur, Indore, producing oral rehydration salts (ORS) powder, liquid orals, ointments, liquid externals and capsules; it holds FDA approvals for more than 600 products, of which 325 are manufactured regularly. Key milestones include becoming a Schedule M GMP-compliant unit in 2004 (liquid orals and ointments), adding ORS powder manufacturing in 2007, commissioning its present WHO-GMP facility in 2016, and adding liquid externals and capsules in 2019. The company monetises through multiple channels: own-brand generics sold via a pan-India distributor network (21.54% of FY 2022-23 sales), white-label/third-party manufacturing for companies such as Ajanta Pharma, Bio Medical Laboratories and Zest Pharma (25.50%), government and institutional tender supply to bodies like Madhya Pradesh Public Health Services Corporation, Rajasthan Medical Services Corporation, Telangana State Medical Services, ESIC and Odisha State Medical Corporation (43.36%), trading (6.80%) and exports through the third-party route to markets including Costa Rica, Malawi, Mauritius, Mozambique, Sudan, Tanzania, Bhutan, Cambodia, Tajikistan, Liberia, Sierra Leone and Conakry (2.50%). For FY 2022-23 it reported revenue from operations of ₹11,451.91 lakhs and PAT of ₹515.33 lakhs, and for the period ended September 30, 2023 revenue of ₹6,948.43 lakhs and PAT of ₹540.55 lakhs. It is setting up a new factory on adjacent land at Village Muradpura to add tablet and liquid oral capacity, and has received a ₹170.04 lakhs industrial development grant under the Madhya Pradesh MSME Promotion Scheme, 2019.
Company Analysis
from RHPZenith Drugs Limited is an Indore-based, WHO-GMP compliant pharmaceutical manufacturing and trading company that produces ORS Powder, Liquid Orals, Ointments, Liquid Externals and Capsules for own-brand distribution, white-label contract manufacturing, government/institutional tenders, trading and exports.
Zenith Drugs Limited (formerly Zenith Drugs Private Limited) was incorporated on November 15, 2000 in Indore, Madhya Pradesh by Late Shri Ramniklal Soni and Mr. Mukesh Jain, and was converted into a public limited company on September 13, 2023. It operates a WHO-GMP certified, ISO 9001:2015-certified manufacturing facility at Village Muradpura, Depalpur, Indore, producing oral rehydration salts (ORS) powder, liquid orals, ointments, liquid externals and capsules; it holds FDA approvals for more than 600 products, of which 325 are manufactured regularly. Key milestones include becoming a Schedule M GMP-compliant unit in 2004 (liquid orals and ointments), adding ORS powder manufacturing in 2007, commissioning its present WHO-GMP facility in 2016, and adding liquid externals and capsules in 2019. The company monetises through multiple channels: own-brand generics sold via a pan-India distributor network (21.54% of FY 2022-23 sales), white-label/third-party manufacturing for companies such as Ajanta Pharma, Bio Medical Laboratories and Zest Pharma (25.50%), government and institutional tender supply to bodies like Madhya Pradesh Public Health Services Corporation, Rajasthan Medical Services Corporation, Telangana State Medical Services, ESIC and Odisha State Medical Corporation (43.36%), trading (6.80%) and exports through the third-party route to markets including Costa Rica, Malawi, Mauritius, Mozambique, Sudan, Tanzania, Bhutan, Cambodia, Tajikistan, Liberia, Sierra Leone and Conakry (2.50%). For FY 2022-23 it reported revenue from operations of ₹11,451.91 lakhs and PAT of ₹515.33 lakhs, and for the period ended September 30, 2023 revenue of ₹6,948.43 lakhs and PAT of ₹540.55 lakhs. It is setting up a new factory on adjacent land at Village Muradpura to add tablet and liquid oral capacity, and has received a ₹170.04 lakhs industrial development grant under the Madhya Pradesh MSME Promotion Scheme, 2019.
Objects of the Issue
- Purchase of Machinery & Equipments for Setting up New Unit (new Tablet Manufacturing Unit and Liquid Oral Segment on adjacent land at Village Muradpura, Depalpur, Indore) ₹ 1,060.99 Lakhs p.81
- Existing Manufacturing Block Upgradation (purchase of additional parts and equipment to enhance quality and production capacity of the existing plant) ₹ 210.59 Lakhs p.84
- Working Capital Requirements ₹ 1,200.00 Lakhs p.85
- General Corporate Purposes p.86
Issue Structure
- Total Issue
- Upto 51,48,800 Equity Shares of face value ₹ 10.00 each aggregating ₹ [●] Lakhs (constituting 30.02% of post-issue paid-up capital)
- Fresh Issue
- Upto 51,48,800 Equity Shares amounting to ₹[●] Lakhs (entire issue is a fresh issue)
- Offer for Sale
- Nil
- Price Band
- ₹ 75.00 to ₹ 79.00 per Equity Share
- Lot Size
- Minimum of 1,600 Equity Shares and in multiples of 1,600 Equity Shares thereafter
- Face Value
- ₹ 10.00 each
Business Model
Zenith earns revenue by manufacturing and selling pharmaceutical formulations across several streams: (1) marketing branded generic drugs through a nationwide network of state-wise C&F/super distributors, district-wise stockists and retailers; (2) white-label/third-party job-work manufacturing for pharma companies such as Ajanta Pharma, Bio Medical Laboratories and Zest Pharma; (3) government and institutional tender supplies (e.g., MP Public Health Services Corporation, Rajasthan Medical Services Corporation, Telangana State Medical Services, ESIC, Odisha State Medical Corporation); (4) trading of pharmaceutical products; and (5) exports via the third-party route, where overseas merchants register Zenith as the manufacturer and place orders. Per the Segment Wise Sales table, in FY 2022-2023 these contributed 21.54% (own brand), 25.50% (white label), 43.36% (government), 6.80% (trading) and 2.50% (exports through third party route) of sales respectively.
Business Segments
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Sandeep Bhardwaj | Promoter | 30.56% | 21.38% |
| Mr. Bhupesh Soni | Promoter | 28.84% | 20.18% |
| Mr. Ajay Singh Dassundi | Promoter | 32.18% | 22.52% |
| Jaywanti Soni | Promoter Group | 4.20% | 2.94% |
| Saroj Soni | Promoter Group | 0.29% | 0.20% |
| Anjali Dassundi | Promoter Group | 1.15% | 0.80% |
| Priyanka Bharadwaj | Promoter Group | 2.78% | 1.94% |
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.