Shares of Bio Medica Laboratories are set to debut on the NSE SME platform on Friday amid weak grey market sentiment, with the IPO currently commanding a negative premium in the unofficial market. The company’s shares were trading at a discount in the grey market ahead of listing, indicating the possibility of a subdued market debut.
The Rs 52 crore IPO had opened for subscription between May 21 and May 25, while the allotment was finalised 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 aggregating to Rs 5.24 crore.
Bio Medica Laboratories had fixed the price band at Rs 132-139 per share and finalised the issue price at Rs 139 apiece. The IPO received an overall subscription of 2.26 times during the bidding process.
The qualified institutional buyers portion was subscribed 15.94 times, while the retail investor category saw subscription of 2.92 times. The non-institutional investor segment was subscribed 1.3 times.
Narnolia Financial Services was the book-running lead manager to the issue, while Skyline Financial Services acted as the registrar. Prabhat Financial Services was the market maker.
Incorporated in 2015, Bio Medica Laboratories is engaged in manufacturing pharmaceutical parenteral formulations. The company manufactures ethical drugs, generic medicines and over-the-counter products in liquid injectable and dry-powder injectable formats for both human and veterinary healthcare segments.
Its product portfolio includes 58 liquid injectable products and 15 dry-powder injectable products. The company primarily operates on 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 issued by the Food and Drugs Administration, Madhya Pradesh.
The company plans to utilise IPO proceeds toward loan repayment, expansion of manufacturing capacity through a new facility at its existing premises and general corporate purposes.
For FY25, the company reported total income of Rs 38.33 crore and profit after tax of Rs 9.79 crore. The weak GMP suggests investors remain cautious on smaller IPOs despite selective institutional interest in the issue.
SME IPOs have witnessed mixed listing performance in recent months as broader market volatility, foreign investor selling and concerns around valuations continue to weigh on sentiment. Grey market premiums are unofficial indicators of investor sentiment and do not guarantee actual listing performance.
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