Zenith Drugs Limited IPO

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Zenith Drugs Limited, based in Indore, India, is a pharmaceutical manufacturing and trading company that has established itself as a significant player in the pharmaceutical industry. The company’s journey began in 2000, focusing on manufacturing high-quality and affordable medicines. Over the years, Zenith has evolved to specialize in both generic medicines, known for their cost-effectiveness, and a broad range of formulations, including ORS powder, liquid orals, ointments, liquid externals, and capsules. Their commitment to quality is evident in their WHO-GMP compliance and ISO 9001:2015 certification, underscoring their adherence to international standards in pharmaceutical manufacturing.

Zenith’s journey of growth is marked by strategic expansions and continuous improvement in their manufacturing capabilities. The transition to a Schedule M GMP compliant unit in 2004, the addition of ORS Powder manufacturing in 2007, and the establishment of a WHO GMP certified state-of-the-art manufacturing facility in 2016 are testament to their dedication to excellence. These milestones have enabled Zenith to significantly enhance its product portfolio and manufacturing quality, positioning the company for future success.

A key aspect of Zenith’s business model is its integrated approach to manufacturing and marketing. This strategy allows for streamlined operations, stringent quality control, and speed to market, providing Zenith with a competitive edge. By maintaining control over the entire product lifecycle, Zenith ensures the delivery of high-quality pharmaceutical products, fostering trust with customers and distinguishing itself from competitors.

Zenith’s global presence spans several continents, including Central America and the Caribbean, Pacific regions, Africa, Southeast Asia, the CIS region, and FWA. The company’s international operations are supported by third-party distribution networks and direct export initiatives, such as the recent move to establish direct export distribution in Liberia. This global footprint not only demonstrates Zenith’s commitment to expanding access to quality healthcare worldwide but also highlights its strategic approach to capturing international market opportunities.

The company’s history of innovation and quality is supported by a robust in-house department of formulation development, quality control, and product stability studies. This department is responsible for continuous innovation in product formulations and ensuring that all products meet the stringent standards required for commercial launch.

Zenith Drugs Limited’s journey from its inception to becoming a public limited company in 2023 illustrates its commitment to growth, quality, and serving the healthcare needs of people worldwide. The founders’ vision, coupled with the company’s strategic expansions, adherence to quality standards, and global market presence, positions Zenith Drugs Limited as a leading pharmaceutical company with a bright future ahead.

Objects of the Zenith Drugs Limited IPO:

The Company intends to utilize the Net Fresh Issue Proceeds for the following Objects: - i. Purchase of Machinery & Equipments for Setting up New Unit ii. Existing Manufacturing Block Upgradation iii. Working Capital Requirements iv. General Corporate Purposes.
DRHP of Zenith Drugs Limited IPO
RHP of Zenith Drugs Limited IPO

Zenith Drugs Limited IPO Details:

Open Date: Feb 19 2024
Close Date: Feb 22 2024
Total Shares: 5,148,800
Face Value: ₹ 10 Per Equity Share
Issue Size: 40.68 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 75 - 79 Per Equity Share
Listing At: NSE Emerge
Listing Date: Feb 27 2024

Promoters And Management:

Mr. Sandeep Bhardwaj, aged 45 years, is the Promoter and Managing Director of the Company. He was appointed as Director w.e.f. October 31, 2003. Further, he was appointed as Managing Director of the Company w.e.f. September 16, 2023 for a period of 5 years. He has completed his degree of Bachelor in Pharmacy from Shri G. S. Institute of Technology and Science, Indore in the year 2000. He has more than 19 years of experience. He is a visionary entrepreneur and has played a pivotal role in setting up business of the Company. He leads and oversees all aspect of pharmaceutical operations including manufacturing, quality control, supply chain, regulatory compliance. He developed and implement plans to increase production capacity while maintaining its product quality. He primarily looks after the overall business operations of the Company. Mr. Bhupesh Soni, aged 44 years, is the Promoter and Executive Director of the Company. He was appointed as Executive Director w.e.f. March 15, 2001. He has completed his degree of Bachelor in Pharmacy from Shri G. S. Institute of Technology and Science, Indore in the year 2003. He is a dynamic and result oriented professional with a 23 years’ experience in the Pharmaceutical Industry with a leadership role as a Director. He has fostered strong relationship with suppliers and assists them in improving their performance to meet quality and compliance standards. He leads the market research and competitive analysis to identify market trends and opportunities. He implemented the projects of ‘Zenith Manufacturing Unit – I, Capsule Block Addition and commissioned the project of Premier Products. Mr. Ajay Singh Dassundi, aged 44 Years, is the Promoter and Executive Director of the Company. He was Appointed as Executive Director of the Company w.e.f. October 31 2003 and further re-appointed as Executive Director of the Company w.e.f. June 25, 2015. He has completed his Bachelors of Pharmacy from the Shri G. S. Institute of Technology and Science, Indore in the year 2000. He is dynamic and result driven sales and marketing professional with 23 years of experience in the Pharmaceutical Industry starting his career as medical representative with a Multinational Company and later established his own company i.e. Zenith Drugs Limited. Over the period of time, he has developed key relations with health care professionals, dealers, distributors and other stakeholders of the industry. His business skills and PR expertise has always been beneficial for the company and his vision has guided the company to achieve the business objectives.

Financials of Zenith Drugs Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 7,340 9,166 11,452 6,941
Other Income 11 101 118 8
Total Revenue 7,352 9,267 11,570 6,948
Cost of Materials Consumed 5,185 7,553 8,572 4,430
Change in Inventories 16 -293 -54 140
Employees Benefit Expenses 345 371 473 343
Other Expenses 1,092 851 1,494 1,066
EBITDA 714 784 1,085 969
Depreciation & Amortisation 122 133 130 63
Finance cost 132 211 234 146
EBIT 593 652 955 907
OPM (%) 9.72% 8.46% 9.38% 13.95%
PBT 460 441 721 759
Tax 157 128 206 220
PAT 303 313 515 539
NPM (%) 4.12% 3.38% 4.45% 7.76%
No.of Shares 171.48 171.48 171.48 171.48
EPS 1.76 1.82 3.00 3.14

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Zenith Drugs Limited 115 5 3.00 26.3 79 135
Sudarshan Pharma Industries Limited 461 7 2.93 18.8 66 159
Sigachi Industries Limited 302 44 1.42 47.7 76.7 2,359
* All the data is as per FY23.

Lead Manager of Zenith Drugs Limited IPO:

  1. Gretex Corporate Services Private Limited

Registrar of Zenith Drugs Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Zenith Drugs Limited K. No. 72 / 5, Village Muradpura NA Depalpur, Indore-453001 Phone: +91 8435501867 Email: info@zenithdrugs.com Website: https://zenithdrugs.com/

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