NSE SME IPO of Quest Laboratories subscribed 79%

The offer received bids for 35.55 lakh shares as against 44.49 lakh shares on offer.

The initial public offer (IPO) of Quest Laboratories received bids for 35,55,600 shares as against 44,49,600 shares on offer, as per NSE data as of 17:00 hours on Wednesday (15 May 2024). The issue was subscribed 0.79 times.

The issue opened for bidding on Wednesday (15 May 2024) and it will close on Friday (17 May 2024). The price band of the IPO is fixed between Rs 93 to Rs 97 per share. The minimum order quantity is 1,200 equity shares. The equity shares will list on NSEs SME platform.

The IPO comprises fresh issue of 44,49,600 equity shares. The promoter and promoter group shareholding will dilute to 65.82% from 90.36% Pre-IPO.

About 2,28,000 equity shares will be reserved for subscription by market maker to the issue. The net issue comprises of 42,21,600 equity shares. The issue and the net issue will constitute 27.15% and 25.76% respectively of the post offer paid up equity share capital of the company.

The company intends to utilize the net proceeds to meet working capital requirements of the company, for funding of capital expenditure towards purchase of plant and machineries for expansion at the existing manufacturing facility situated at Dhar, Madhya Pradesh and general corporate purposes.

Ahead of the IPO, Quest Laboratories on Tuesday, 14 May 2024, raised Rs 11.98 crore from anchor investors. The board allotted 12.36 lakh shares at Rs 97 per share to 4 anchor investors.

Quest Laboratories engaged in the business of manufacturing of pharmaceutical formulations across a broad spectrum, including antibiotics, antimalarials, antispasmodics, anti-inflammatories, antiemetics, respiratory medications, diabetes treatments, antidepressants, and more. These formulations fall under the trademark Quest Laboratories. The company produces a variety of products, comprising ethical drugs, generic drugs, and over the-counter drugs (OTC). These products are available in various forms such as tablets, liquid orals, oral dry powders, oral powders (ORS), ointments, and external liquids. As of 31 December 2023, the company has 83 employees.

The company recorded revenue from operations of Rs 62.07 crore and net profit of Rs 7.74 crore for the period as on 31 December 2023.

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