About the Company:
Quest Laboratories Limited is 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.
Company produces a variety of products, comprising generic drugs and overthe- counter drugs (OTC).
Company’s products are available in various forms such as tablets, liquid orals, oral dry powders, oral powders (ORS), ointments, and external liquids. This comprehensive approach allows company to address a wide range of medical needs and preferences among patients.
Company holds WHO Schedule M GMP, and GLP certifications, adhering to the stringent guidelines set by the World Health Organization.
Company also possesses Good Laboratory Practice (GLP) certificate issued by Food & Drug Administration, Bhopal, Madhya Pradesh, indicating its commitment to maintaining high standards of quality and compliance in laboratory operations, particularly within the pharmaceutical sector.
Company have been receiving sales orders from the private sector & government institutions on regular basis and has successfully bid for government tender contracts over the past few years, collaborating with major state and central government institutions and corporations.
Company’s Manufacturing Facility:
Company currently has manufacturing facility located at Plot No. 45, Sector III, Pithampur Industrial Area, Pithampur, Dhar – 454775, Madhya Pradesh, India. The total area of the facility is approximately 4,065 square meters.
Company’s manufacturing facilities are well equipped with the required facilities including machinery, other handling equipment’s to facilitate smooth manufacturing process and easy logistics.
Company Plans to Expand the Geographical Presence.
Company believes that the growth in the domestic market will result from the increasing demand for generic drugs, access to affordable, high-quality medicine, and new product opportunities.
Company has presence in twelve (12) states and two (2) union territories namely Uttar Pradesh, Madhya Pradesh, Maharashtra, Delhi, Jharkhand, Assam, Karnataka, Jammu & Kashmir, Rajasthan, West Bengal, Gujarat, Telangana, Haryana and Bihar based on sales made for the period ended March 31, 2023.
As a business strategy, Company intends to widen the reach by increasing our domestic presence and entering the international market.
To meet the escalating demand in the pharmaceutical industry, company intends to expand and upgrade the manufacturing capacities and we believe that our investment in these plants and machinery will augment our current installed capacity, thereby enabling us to address the demand in the pharmaceutical injectable sector, particularly in the field of oncology which will facilitate entry in the international market and establish our presence in global pharmaceutical market.
Breakup of Revenues from Government & Private Sector:(in lakhs)
Management Team:
- Mr. Anil Kumar Sabarwal (Designation: Chairman & Managing Director)
- Ms. Tejaswini Sabarwal (Designation: Whole Time Director)
Objectives of the Issue:
Fresh Issue: (Rs.43.16 cr)
- Funding of capital expenditure towards purchase of plant and machineries for expansion at the existing manufacturing facility.
- Funding working capital requirements of our company.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Funding of capital expenditure towards purchase of plant and machineries for expansion at the existing manufacturing facility | 26.0 cr |
| Funding Working Capital Requirements of our Company | 10 cr |
Positives for the Company:
Multi-product capability.
- Company has approvals to manufacture more than 600 formulations and routinely manufactures 250 to 300 types of formulations based on market demand and limited formulation lines. However, company has a versatile manufacturing facility by which it can produce multiple products using a combination of processes.
Revenue from Government institutions.
- Institutional and government business constitute a vital segment for the Company.
- Company participates in government tenders, forging collaborations with major state and central government institutions. The advantages of government business include bulk quantity orders, committed volumes, and favorable purchase prices due to high-volume transactions.
Wide Product Portfolio.
- A diverse and well-balanced product portfolio is another key competitive advantage for the Company.
- Company offers a comprehensive range of products, including generic drugs, branded pharmaceuticals, over-the-counter (OTC) products, and specialized medications. This diverse portfolio allows company to cater to various market segments and respond effectively to changing market demands.
Expansion and upgradation of our manufacturing facility.
- Company intends to expand and upgrade the manufacturing capacities for existing formulations and new formulations that are currently in development and commercialization stages.
- Company’s plan involves increasing production capacity by installing new plants and machinery at existing manufacturing facility. Company firmly believes that the investment in these plants and machineries will augment our current installed capacity, thereby enabling us to address the demand in the pharmaceutical injectable sector, particularly in the field of oncology.
- Company’s objective is to establish an injectable section comprising liquid vials and ampoules, as well as dry injections, including a lyophilizer line, to ensure efficient production processes. Company plans to fund capital expenditure towards purchase of plant and machineries for expansion and upgradation at the existing manufacturing facility from net proceeds of the issue.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 31st Dec 23 |
|---|---|---|---|---|
| Revenue | 30.43 | 59.54 | 61.86 | 62.17 |
| Net Profit | 0.65 | 4.10 | 5.02 | 7.74 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Quest Laboratories Ltd | 10 | 4.66 | 20.81 | 33.47% | 13.93 |
| Beta Drugs Ltd | 10 | 19.57 | 66.43 | 19.55% | 100.12 |
| Alpa Laboratories Ltd | 10 | 5.90 | 15.92 | 8.59% | 68.69 |
| Zenith Drugs Ltd | 10 | 4.29 | 14.69 | 29.88% | 14.37 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 15th May 2024 |
| Issue Closes on | 17th May 2024 |
| Issue Price | Rs.93 -97 |
| Face Value | Rs.10 |
| Minimum Lot | 1200 Shares |
| Minimum Investment | Rs.1,16,400 |
| Issue Constitutes | 27.15 % |
| Issue Size | Rs.43.16 cr |
| Market Cap | Rs. 158.9 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 44,49,600 (Rs.43.16 cr) |
| Equity Shares Prior to the Issue | 1,19,37,600 |
| Equity Shares after the Issue | 1,63,87,200 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 21st May 2024 |
| Initiation of Refunds | on or Before 22nd May 2024 |
| Credit of Equity Shares: | on or Before 22nd May 2024 |
| Listing Date: | on or Before 23rd May 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 4.66 | 20.81 | 33.47% | 13.93 | 0.27 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Quest Laboratories Limited is a prominent manufacturer of pharmaceutical formulations, offering a comprehensive range of products, including antibiotics, antimalarials, antispasmodics, anti-inflammatories, antiemetics, respiratory medications, diabetes treatments, and antidepressants. The company’s diverse portfolio features both generic and over-the-counter (OTC) drugs, catering to various medical needs. With plans to expand its geographical presence, Quest Laboratories is poised for growth.
The company consistently receives sales orders from private sectors and government institutions, underscoring its reliability and market demand. Investors seeking long-term opportunities may find this IPO attractive, given Quest Laboratories’ strong product lineup and strategic expansion plans. This positions the company well for sustained success in the competitive pharmaceutical industry. |
| Company Contact Info: |
|---|
| Quest Laboratories Limited Plot No. 45 Sector III Pithampur, Dhar – 454775, Madhya Pradesh, India. Tel No: 07292-292374 Email: investors@questlabltd.com Website: www.questlabltd.com |
| Registrar to the Issue: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED Office No. S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali CavesRoad, Andheri East, Mumbai – 400 093, Maharashtra, India Tel: 022 – 6263 8200 E-mail: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| SHRENI SHARES LIMITED No. 217, Hive 67 Icon, Poisar Gymkhana Road, Lokmanya Tilak Nagar Poisar, Near Raghuleela Mall, Kandivali West, Mumbai – 400067, Maharashtra, India. Telephone: 022 – 2089 7022 E-mail: shrenishares@gmail.com Website: www.shreni.in |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
| Find the List of Upcoming IPOs in India: |
|---|
Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
