Zenith Drugs witnessed a robust market entry, debuting at a 39.2% premium to its IPO price on February 27. The stock opened at Rs 110 on the NSE SME platform, significantly higher than the issue price of Rs 79.
Prior to listing, the stock commanded a 44% premium in the grey market, an unofficial platform where shares trade before IPO allotment and until listing day. This metric is often monitored by investors to gauge the potential listing price.
The IPO received overwhelming response, being oversubscribed 179 times between February 19 and February 22. Notably, retail investors bid 139 times, non-institutional investors 368 times, and qualified institutional buyers 106 times the allotted quota. Zenith Drugs raised Rs 40.68 crore through a fresh issue of 51.48 lakh shares at a price band of Rs 75-79 per share.
Prior to the IPO, the company secured Rs 10.18 crore from six anchor investors, including Vikasa India EIF I Fund–Zodiac Global Opportunity Fund, Chanakya Opportunities Fund I, Moneywise Financial Services, Aries Opportunities Fund, Neomile Growth Fund- Series I, and Meru Investment Fund PCC – Cell 1.
The net proceeds from the IPO will be utilized for purchasing machinery and equipment for a new unit, upgrading existing manufacturing blocks, and meeting working capital requirements, with the remaining funds allocated for general corporate purposes.
Headquartered in Indore, Zenith Drugs is a pharmaceutical manufacturing and trading company with FDA approval for over 600 products from the Food and Drugs Administration.
