Synopsis
Shares of Bio Medica Laboratories are expected to be listed on the NSE SME platform amid weak gray market sentiment, with the IPO currently trading at a discount. The Rs 52 crore IPO, which saw an overall subscription of 2.26 times, aims to fund loan repayment and manufacturing expansion. Despite selective institutional interest, investor caution prevails due to broader market volatility.
ETMarkets.comShares of Bio Medica Laboratories are expected to be listed today on the SME NSE platform. Actions of Bio Médica Laboratories are about to make their debut on the NSE SME Platform Friday, amid weak gray market sentiment, with the IPO currently driving a negative premium in the unofficial market. The company’s shares were trading at a discount on the gray market before listing, indicating the possibility of a soft start to the market.
The Rs 52 crore IPO had been open for subscription between May 21 and 25, while the allotment was finalized on May 26. The issue was a combination of a fresh issue of 33.95 lakh shares worth around Rs 47.19 crore and an offer for sale of 3.77 lakh shares totaling Rs 5.24 crore.
Bio Medica Laboratories had set the price range at Rs 132-139 per share and finalized the issue price at Rs 139 each. The IPO received an aggregate subscription of 2.26 times during the bidding process.
The portion of qualified institutional buyers was subscribed 15.94 times, while the retail investor category was subscribed 2.92 times. The non-institutional investor segment was subscribed 1.3 times.
Narnolia Financial Services was the underwriter of the offering, while Skyline Financial Services acted as registrar. Prabhat Financial Services was the market maker.
Founded in 2015, Laboratoires Bio Medica is dedicated to the manufacturing of parenteral pharmaceutical formulations. The Company manufactures ethical medicines, generic medicines and over-the-counter products in liquid injectable and injectable dry powder form for the human and veterinary healthcare segments.
Its product portfolio includes 58 liquid injectable products and 15 dry powder injectable products. The company operates primarily under a business-to-business contract manufacturing model, developing formulations based on customer specifications and requirements.
Bio Medica Laboratories operates two manufacturing facilities in Indore, Madhya Pradesh and holds GMP and GLP certifications from the Food and Drugs Administration of Madhya Pradesh.
The company plans to use the proceeds from its IPO for loan repayment, expansion of manufacturing capacity through a new facility at its existing premises and for general corporate purposes.
For FY25, the company reported total revenue of Rs 38.33 crore and profit after tax of Rs 9.79 crore. The weak GMP suggests that investors remain cautious about small IPOs, despite selective institutional interest in this issue.
SME IPOs have seen mixed performance in recent months, as broader market volatility, foreign investor selling and concerns over valuations continue to weigh on sentiment. Gray market premiums are unofficial indicators of investor sentiment and do not guarantee actual quote performance.
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