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Quest Laboratories Limited IPO: Price, Lot Size, Strengths and Risks

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Quest Laboratories Limited IPO is going to hit the Indian financial market on 17th May 2024. The company will issue up to 44,49,600 fresh shares in this offer, having a lot size of 1,200 shares. 

Quest Laboratories Limited is a pharmaceutical company that manufactures different types of products such as antidepressants, respiratory drugs, antimalarials, antispasmodics, anti-inflammatory drugs, etc. The company operates across 12 states and 2 union territories across India. 

The price band of this IPO is Rs. 93 to Rs. 97 per equity share. To learn more about it, read this blog carefully.

IPO Details

Take a look at the following table to get a brief idea of Quest Laboratories Limited IPO:

IPO Launch Date

15th May 2024 to 17th May 2024,

Issue Type

Book Built IPO

Face Value

Rs. 10 per share

Price Band

Rs. 93 to Rs. 97 per share

Minimum Lot Size

1,200 equity shares

Total Issue Size

Amount aggregating up to Rs. 43.16 crore

About the Company

Quest Laboratories Limited was started in 1998, operating as a pharmaceutical product manufacturing company. The company has 900+ FDA-approved formulations across various products of different sections such as tablets, dry syrups, powders, ointments, etc.

The company operates in India’s domestic market across 12 states and 2 union territories. It includes Uttar Pradesh, Jharkhand, Assam, Delhi, Madhya Pradesh, Maharashtra, Rajasthan, West Bengal, Gujarat, Telangana, Haryana and Bihar. It has a primary manufacturing set-up at Dhar, Madhya Pradesh. 

The company also manufactures capsules, tablets, hard and soft gelatin, injection vials, oral powders, liquid orals, etc.

The IPO is a 100% fresh issue type offer. The total IPO size is Rs. 43.16 crore and the total number of shares offered is 44,49,600 shares.

Additional Read: How to Invest in an IPO Online

IPO Timeline

Here are the important dates and overall timeline of the Quest Laboratories Limited IPO that you should know before applying:

IPO Open Date 

15th May 2024, Wednesday

IPO Close Date 

17th May 2024, Friday

Cut-off Time for UPI Mandate Confirmation

17th May 2024 at 5 PM

Basis of Allotment Date 

21st May 2024, Tuesday

Initiation of Refunds Date 

22nd May 2024, Wednesday

Credit of Shares to Accounts Date 

22nd May 2024, Wednesday

Listing Date 

23rd May 2024, Thursday

Quest Laboratories Limited IPO Lot Size

Follow this table to know the lot size of the issue:

Application

Lots

Shares

Amount

Retail Investor (Minimum)

1

1,200

Rs. 1,16,400

Retail Investor (Maximum)

1

1,200

Rs. 1,16,400

HNI (Minimum)

2

2,400

Rs. 2,32,800

Company Financials

Let us take a look at the financial statements of Quest Laboratories Limited for the last 3 years:

Particulars

For the Financial Year Ending (Rs. In Lakhs)

 

March 31, 2023

March 31, 2022

March 31, 2021

Total Assets

4,664.72

3,479.86

1,839.63

Total Liabilities

3,162.51

2,480.48

1,250.79

Total Expenses

5,490.64

5,377.52

2,964.59

Total Revenue

6,186.60 

5,954.20

3,043.55

Profit/Loss After Tax

502.85

410.50

65.50

EBITDA

782.24 

646.55

141.84

Strengths of the Company

Quest Laboratories Limited has the following inherent strengths that can help boost its IPO:

  • The company has a factory that can make over 600 different products, but it focuses on the 250-300 most popular ones. It can easily switch between products to meet customer needs. It has its labs to develop new, cost-effective ways to make products quickly.

  • The company sells products to the government. These programs give free medicine to people, helping them fight chronic diseases or death. The company partners with the government to win bids for these programs. Selling to the government means big orders, guaranteed sales and good prices.

  • It prioritises quality by holding a GLP certification and running its quality control lab to test both raw materials and finished products. Its advanced equipment and highly trained staff ensure everything meets strict standards. The company holds various certifications in quality management (ISO 9001), testing labs (ISO/IEC 17025) and good manufacturing practices (WHO-GMP).

  • The company has a smooth-running supply chain that gets things done quickly and cheaply. It helps the company adapt to market changes faster than the competitors. In the fast-paced world of medicine, where speed and reliability are key, this gives us a big advantage. 

  • The company believes that it can quickly adjust to new regulations. This helps to keep making high-quality products that meet customer needs.

Additional Read: Difference Between NFO and IPO

Risks Involved

The risks involved in applying to Quest Laboratories Limited IPO are discussed below:

  • Quest Laboratories Limited’s promoter Mr. Anil Kumar Sabarwal was imprisoned for a legal matter against him. Now, he has filed an appeal against the order. If the appeal goes against him, the company will be adversely affected.

  • There are certain outstanding legal matters against the company. Any adverse outcomes of these legal matters will affect companies reputation, operations and performance.

  • A significant portion of its revenue depends on the demand from the pharmaceutical industry. Any downturn in the industry or any inability to manage or increase sales can impact its business and revenue.

  • The company is highly dependent on its manufacturing facility to manufacture and supply products on time. However, it has only one manufacturing facility in Madhya Pradesh. Any slowdown or stoppage in the factory will adversely impact the supply and impact its financial results, business and revenue.

Summing Up

Quest Laboratories Limited IPO is an SME IPO which will be listed only on the National Stock Exchange Emerge (NSE Emerge). The IPO will be available for subscription between 15th May 2024 and 17th May 2024. The IPO full form refers to the Initial Public Offering, which is a process by which a company offers its shares to the public for the first time. If you are thinking of investing in this IPO, you should read the RHP carefully.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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