ZHCL plans to offer the shares at a premium to the face value with hopes to make the IPO valuation around Rs 58 crore.
Surat based Pharmaceutical Company Zota Health Care Limited (ZHCL), will launch its initial public offering (IPO)on 27th April.
The company announced pricing of its initial offering of 46,80,000 equity shares with a face value of Rs 10 per share at a price band of Rs.121 to 125. The offer consists of fresh issue of 31,80,000 equity shares and offer for sale of 15,00,000 equity shares.
A national level visibility is envisaged for the proposed IPO with the Draft Red Herring Prospectus (DRHP) of ZHCL being floated on the EMERGE platform of the National Stock Exchange, helpingthe company gain a solid footing in the industry. Pantomath Capital Advisors Private Limited & Indian Overseas Bank is the lead manager to the Proposed Issue.
Over the years, the company has built a steady position with a consistent growth of revenue in domestic operations from Rs 32 crore in 2012 to Rs65 crore in 2016.
The company plans to offer the shares at a premium to the face value with hopes to make the IPO valuation around Rs 58 crore.
Himanshu Zota, Director, Zota Healthcare Ltd, said, "Our company is going public mainly to raise funds for company’s expansion plans in the Indian and Foreign Markets. Currently in the growth stage, this listing will also add to our branding and increase our acceptability among dealers.
While our products are approved by the regulator, the IPO will strengthen the customer confidence. In addition to operational benefits, the IPO will also bring in advantages like tax benefits, talent retention and increased corporate governance. We believe that for a firm of our size the IPO is a perfect platform to raise capital in a cost effective manner."
ZHCL has currently applied for patent for 19 unique formulations from which it has been granted approvals for 6 formulations.
The company is actively expanding its presence in the digital space with the launch of its mobile application for its Nutravedic division. Additionally, it has acquired marketing rights of Astra-Idl Ltd, for three years to strengthen its position in the generic market segment.
Zota said, "We have done considerably well in expanding our business operations. With this IPO, we look forward to create shareholder wealth for all investor classes including HNIs, institutional and retail investors with long term investment perspective.
Additionally, with our increasing international presence and approvals granted for our export businesses, the investor wealth is geared togrow in tandem with the growth of the company."