Quest Laboratories IPO is a book built issue of Rs 43.16 crores. The issue is entirely a fresh issue of 44.5 lakh shares.
Quest Laboratories IPO opens for subscription on May 15, 2024 and closes on May 17, 2024. The allotment for the Quest Laboratories IPO is expected to be finalized on Tuesday, May 21, 2024. Quest Laboratories IPO will list on NSE SME with tentative listing date fixed as Thursday, May 23, 2024.
Quest Laboratories IPO price band is set at ₹93 to ₹97 per share. The minimum lot size for an application is 1200 Shares. The minimum amount of investment required by retail investors is ₹116,400. The minimum lot size investment for HNI is 2 lots (2,400 shares) amounting to ₹232,800.
Quest Laboratories IPO Details
| IPO Date | May 15 , 2024 to May 17, 2024 |
| Listing Date | [.] |
| Face Value | ₹ 10 per share |
| Price Band | ₹93 to 97 share |
| Lot Size | 1200 Shares |
| Total Issue Size | 4,449,600 shares (aggregating up to ₹43.16 Cr) |
| Fresh Issue | 4,449,600 shares (aggregating up to ₹43.16 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE,SME |
| Share holding pre Issue | 11,937,600 |
| Share holding post Issue | 16,387,200 |
| Market Maker Portion | 228,000 shares |
Quest Laboratories IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail shares offered | Net less than 35% of the Net Issue |
| NII (HNI) Shares offered | Net less than 15% of the Net Issue |
Quest Laboratories IPO Anchor Investors Details
Quest Laboratories IPO raises Rs 11.99 crore from anchor investors. Quest Laboratories IPO Anchor bid date is May 14, 2024.
| Bid Date | May14 , 2024 |
| Shares Offered | 1,236, 000 |
| Anchor Portion Size ( IN Cr .) | 11,99 |
| Anchor lock -in period end date for 50% Shares ( 30 Days) | June 20, 2024 |
| Anchor lock – in period end date for remaining Shares ( 90 Days ) | August 19 , 2024 |
Quest Laboratories IPO Timeline ( Tentative Schedule)
| IPO Open Date | Wednesday , May 15, 2024 |
| IPO Close Date | Friday , May 17, 2024 |
| Basis of Allotment | Tuesday , May 21, 2024 |
| Initiation of Refunds | Wednesday, May 22, 2024 |
| Credit of Shares to Demet | Wednesday, May 22, 2024 |
| Listing Date | Thursday , May 23, 2024 |
| Cut-off time for UPI mandate confirmation | 5PM on May 17, 2024 |
Quest Laboratories IPO Lot Size
Investors can bid for a minimum of 1200 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and.
| Application | Lost | Shares | Amount |
| Retail ( Min) | 1 | 1200 | ₹116,400 |
| Retail ( Max ) | 1 | 1200 | ₹116,400 |
| HNI ( MIN) | 2 | 2,400 | ₹232,800 |
Quest Laboratories IPO Promoter Holding
| Share Holding pre Issue | 90.36% |
| Share Holding post Issue | 65.82% |
About Quest Laboratories Limited
Incorporated in June 1998, Quest Laboratories Limited is a pharmaceutical company manufacturing a range of antibiotics, antimalarials, antispasmodics, anti-inflammatories, antiemetics, respiratory medications, diabetes treatments, antidepressants, and more.
The company operates in the domestic market across twelve (12) states and two (2) union territories. These include Uttar Pradesh, Madhya Pradesh, Maharashtra, Delhi, Jharkhand, Assam, Karnataka, Jammu & Kashmir, Rajasthan, West Bengal, Gujarat, Telangana, Haryana, and Bihar.
The manufacturing unit of the company is located in Dhar, Madhya Pradesh.
The company holds WHO Schedule M GMP and GLP certifications, as well as ISO/IEC 17025:2017 and ISO 9001:2015 certifications.
By December 31st, 2023, the company employs 83 individuals to lookafter various aspects of its manufacturing operations, including production, quality control, technical and engineering support services, inventory management, administration, accounting, and other functions such as storage, packing, and dispatch
Quest Laboratories Limited Financial Information (Restated)
Quest Laboratories Limited’s revenue increased by 3.9% and profit after tax (PAT) rose by 22.5% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 31 Des 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 5,869.09 | 4,664.72 | 3,479.86 | 1,839.63 |
| Revenue | 6,217.83 | 6,186.60 | 5,954.20 | 3,043.55 |
| Profit After Tax | 774.15 | 502.85 | 410.50 | 65.50 |
| Net Worth | 2,277.39 | 1,502.21 | 999.38 | 588.84 |
| Reserves and Surplus | 1,198.39 | 1,394.33 | 891.50 | 480.96 |
| Total Borrowing | 460.66 | 409.69 | 312.54 | 304.03 |
Key Performance Indicator
The market capitalization of Quest Laboratories IPO is Rs 158.96 Cr.
KPI as of December 31, 2023.
| KPI | Values |
| ROE | 34.03% |
| ROCE | 41.86% |
| Debt/Equity | 0.2 |
| RONW | 34.03% |
| P/BV | 4.59 |
| PAT Margin (%) | 12.48 |
| pre IPO | Post IPO | |
| EPS (RS) ? | 4.21 | 6.31 |
| P/E (X) ? | 23.03 | 15.38 |
Note:
- The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2023 that is available in RHP.
- The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of December 31, 2023 that is available in RHP.
Objects of the Issue (Quest Laboratories IPO Objectives)
- Funding of capital expenditure towards purchase of plant and machinery for expansion at the existing manufacturing facility;
- Funding working capital requirements of the company;
- General corporate purposes;
Quest Laboratories IPO Review (May apply)
The company is operating in a highly competitive and fragmented segment. It posted bumper profits from FY22 onwards, that raise eyebrows and concern over its sustainability going forward. Based on FY24 annualized super earnings, the issue appears fully priced. Well-informed/cash surplus investors may park moderate funds for the medium term.
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