Quest Laboratories Limited consists of a fresh issue of 44,49,600 shares worth INR 43.16 crores. The company aims to invest in expansion, cover working capital needs, and meet general corporate goals.
Quest Laboratories Ltd IPO – Important Dates
| Quest Laboratories IPO Date | May 15, 2024 to May 17, 2024 |
| Quest Laboratories IPO Listing Date | May 23, 2024 |
| Quest Laboratories IPO Price | INR 93-97 per share |
| Quest Laboratories IPO Lot Size | 1200 shares |
| Quest Laboratories IPO Total Issue Size | INR 43.16 crores |
| Quest Laboratories IPO Basis of Allotment | May 21, 2024 |
| Quest Laboratories IPO Initiation of Refunds | May 22, 2024 |
| Quest Laboratories IPO Credit of Shares to Demat | May 22, 2024 |
| Quest Laboratories IPO Issue Type | Book Built Issue IPO |
| Quest Laboratories IPO Listing At | NSE SME |
Quest Laboratories IPO – Company Profile
Quest Laboratories Limited specializes in manufacturing pharmaceutical formulations, including antibiotics, antimalarials, antispasmodics, and more. Their diverse product range caters to various medical needs and preferences, offering tablets, liquids, powders, and ointments.
They possess a GLP certificate from the FDA, Bhopal, showcasing commitment to quality in pharmaceutical lab operations. Equipped with advanced instruments like HPLC, GC, and FTIR, they ensure accurate analyses.
Their manufacturing operations rely on Active Pharmaceutical Ingredients (APIs), critical starting materials, and intermediaries. Additionally, they procure excipients, lab chemicals, and packaging materials, fostering supplier relationships across regions for continuity and quality assurance.
Quest Laboratories Ltd IPO Review
Quest Laboratories Technologies’ financial analysis reveals a mixed performance. Revenue grew yearly, surpassing last year’s. Profitability doubled, while equity and liabilities expanded consistently, reflecting potential growth and reduced debt reliance.
- Revenue Trend: The revenue increased from ₹5,948.39 lakhs in March 2022 to ₹6,164.06 lakhs in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 6,207.98 lakhs.
- Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹410.50 lakhs in March 2022 to ₹774.93 lakhs by December 2023. This improvement in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹3.81 in March 2022 to ₹7.18 by December 2023, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has grown from 41.08% to 34.03%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
Quest Laboratories Limited IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 5,948.39 | 6,164.06 | 6,207.98 |
| Equity (₹ in lakhs) | 999.38 | 1,502.21 | 2,277.15 |
| Expenses (₹ in lakhs) | 5,377.52 | 5,490.64 | 5,103.46 |
| Profit and Loss After Tax (₹ in lakhs) | 410.50 | 502.85 | 774.93 |
| Diluted EPS only (₹) | 3.81 | 4.66 | 7.18 |
| Return on Net Worth (%) | 41.08 | 33.47 | 34.03 |
| NAV per Equity Share (₹) | 9.26 | 13.93 | 21.11 |
| Total Assets (in lakhs) | 3,479.86 | 4,664.72 | 5,869.09 |
| Total Liabilities (in lakhs) | 2,480.48 | 3,162.51 | 3,246.94 |
| Debt-Equity Ratio | 0.31 | 0.27 | 0.20 |
| Current Ratio | 1.17 | 1.25 | 1.42 |
Quest Laboratories IPO Peer Comparison
Quest Laboratories Limited displays stability with a favorable P/E ratio and robust return on equity. Beta Drugs Limited exhibits high market capitalization and impressive profitability. Alpa Laboratories Limited demonstrates steady growth with solid returns. Zenith Drugs Limited shows moderate performance.
| Company | CMP (₹) | Face Value (₹) | P/E (₹) | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Quest Laboratories Limited | – | 10 | – | 4.66 | 33.47 | 13.93 |
| Beta Drugs Limited | 1,300 | 10 | 66.43 | 19.57 | 19.55 | 100.12 |
| Alpa Laboratories Limited | 93.95 | 10 | 15.92 | 19.57 | 8.59 | 68.69 |
| Zenith Drugs Limited | 63 | 10 | 14.69 | 4.29 | 29.88 | 14.37 |
Quest Laboratories Ltd IPO Objective
The main objective of Quest Laboratories Limited is to finance capital expenditure for expanding manufacturing facilities and to fund working capital needs, ensuring growth and operational stability for the company.
- Funding of capital expenditures towards the purchase of plant and machinery for expansion at the existing manufacturing facility: The company intends to utilize INR 26 crores from the Net Proceeds to expand manufacturing capacities, particularly in the injectable section, focusing on oncology formulations and diversifying the product portfolio.
- Funding working capital requirements: The company intends to allocate INR 10 crores from the Net Proceeds to support its working capital needs for Fiscal Year 2025, reflecting its reliance on internal accruals and bank financing.
- General Corporate Purpose: The company will balance funds towards general corporate goals, including strategic initiatives, partnerships, and meeting contingencies. Additionally, funds may support facility renovation, brand promotion, debt repayment, or other purposes as needed.
Quest Laboratories IPO Risks And Challenges
Quest Laboratories Limited’s risk includes potential harm from the promoter’s conviction and ongoing appeal, regulatory scrutiny impacting operations, and dependency on industry customers, with changes threatening revenue and profitability.
- The promoter’s conviction and ongoing appeal regarding manufacturing NSQ drugs may divert management’s attention and harm the company’s reputation and finances, potentially leading to a maximum penalty of Rs. 20,000 fine and one-year imprisonment.
- Pharmaceutical manufacturers are subject to stringent regulatory scrutiny globally, requiring facility registration and adherence to standards, with modifications necessitating approval and non-standard quality instances leading to litigations impacting operations and adapting to regulatory changes.
- Their pharmaceutical business hinges on industry customers; any loss could harm sales. Changes like outsourcing product development or competitor innovations may render their products obsolete, impacting revenue and profitability.
Quest Laboratories Limited IPO – Industry & Market Potential
India’s manufacturing exports reached a record US$ 447.46 billion in FY23, growing 6.03% from FY22. By 2030, India’s middle-class consumption will rank second globally, highlighting significant economic potential.
The biopharma industry’s near-term performance is projected positively. Global spending on medicines is expected to reach $2.3 trillion by 2028, driven by rising demand despite lower expectations for COVID-19 products.
India’s pharmaceutical industry, accounting for a significant portion of foreign trade, is projected to grow 9-12% over five years, reaching the top 10 in global medicine spending. Government initiatives, including the National Health Protection Scheme, aim to bolster the sector.
Quest Laboratories IPO – Type of Offer
Quest Laboratories Limited consists of a fresh issue of 44,49,600 shares worth INR 43.16 crores. The company aims to invest in expansion, cover working capital needs, and meet general corporate goals.
Quest Laboratories Ltd IPO Offer Size
The offer size of Quest Laboratories Limited is INR 43.16 crores, consisting of a fresh issue of 44,49,600 shares. The company seeks funds to invest in expansion, cover working capital needs, and meet general corporate goals.
Quest Laboratories Ltd IPO Allotment Structure
Quest Laboratories allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations. 2,28,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 2,28,000 shares are reserved for marker makers.
How to apply for Quest Laboratories’s Ltd IPO?
To apply for the Quest Laboratories IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Quest Laboratories IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Quest Laboratories IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Quest Laboratories’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Quest Laboratories IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Quest Laboratories IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Quest Laboratories IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Quest Laboratories IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Enterprise (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Quest Laboratories Ltd IPO Offer Registrar
The registrar for the Quest Laboratories IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
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: [email protected]
Website: www.bigshareonline.com
Quest Laboratories IPO – FAQs
The allotment date of the Quest Laboratories IPO is May 21, 2024.
The price band of the issue is INR 93-97 per share.
The offer size of Quest Laboratories Limited is INR 43.16 crores, consisting of a fresh issue of 44,49,600 shares. The company seeks funds to invest in expansion, cover working capital needs, and meet general corporate goals.
The listing date of Quest Laboratories IPO is May 23, 2024.
