IPO of Zota Healthcare Limited on NSE Emerge

  • Zota Health Care Limited turned out to be the biggest IPO till date on SME Bourses with a public offering of Rs. 58.50 Crores.
  • IPO opened for subscription on April 27, 2017 and closed on May 2, 2017; garnering whooping subscription of more than Rs. 900 Crores.
  • Heavy retail participation with retail category being subscribed more than 26 times
  • Highest number of applications received by an SME IPO till date
  • The Leading Merchant Banker in SME Capital Markets, Pantomath Capital Advisors (P) Limited together with Indian Overseas Bank lead managed the Issue.
  • Zota Health Care Limited, a Surat based Pharmaceutical Company, is engaged in developing, manufacturing and marketing of pharmaceutical and health care products
  • Zota Health Care Limited has distribution network of around 1,000 distributors and a team of 100 medical representatives with more than 20 marketing divisions and product portfolio of around 3,000 products.

Surat: SME IPO of Surat based Pharmaceutical Company, Zota Health Care Limited (Company) on EMERGE Platform of National Stock Exchange of India Limited (NSE) closed for subscription on May 02, 2017. It turned out to be the biggest IPO till date on SME Bourses with a public offering of Rs. 58.50 Crores. Pantomath Capital Advisors (P) Ltd. and Indian Overseas Bank are the Lead Managers to the Issue. The Company has proposed IPO of 46,80,000 equity shares of which 31,80,000 Equity Shares were offered as fresh issue and 15,00,000 Equity shares were offered for sale by the promoter and promoter group selling shareholders. The Issue constitutes 26.68% of the post issue paid up equity share capital of the Company. The proceeds from the fresh issues are proposed to be utilized towards repayment of debt, working capital and general corporate purposes. The issue witnessed participation from various categories of investors procuring over-subscription of 16 times and garnered more than Rs. 930 Crores. The issue received heavy participation from various categories of investors. Interestingly, retail category was subscribed more than 26 times. HNI category was subscribed for more than 7 times. The IPO also witnessed the highest number of applications ever received by an SME IPO. The Company has broken the record of highest issue size of Euro India Fresh Foods Limited of Rs. 51.26 Cr by coming with an IPO of Rs. 58.50 Cr. Notably both the issues are being lead managed by Pantomath Capital Advisors Private Limited.

The Company started operations in 2000 by marketing pharmaceutical products on a local level. The Company has more than 20 marketing divisions and vast product portfolio of around 3,000 products. In addition to being vast, the product portfolio is also diversified in nature, with offerings ranging from allopathic medicine to ayurvedic to healthcare products. The company has a strong marketing network with around 1000 distributors and 100 Medical Representatives. The Company possesses 6 patents for formulations while its application for 13 patents is under process. It has taken initiatives for digital marketing strategy and has already launched a mobile application for its division ―Nutravedic.com and is in process of launching another application to integrate the markets and reach customers at large. Further the Company has purchased the marketing rights of Astra-Idl Ltd. for a period of three years to strengthen the market segment of generic medicines. The Company also has its own manufacturing facility at Surat for catering to export operations.

The Lead Manager, Pantomath Capital, has lead managed the maximum SME IPOs in fastest time span and raised highest funds for emerging companies. As per market analysts, Pantomath is the leading merchant banker in SME markets and their stocks have highest liquidity and superior performance.

SME IPOs have created a stir in the capital markets with total 235 Companies already listed on SME Platforms of BSE and NSE; raising total growth capital of Rs.2100 Crores. Total 40 IPOs being launched on SME bourses since January 2017; raising total growth capital of Rs. 572 Crores. Pantomath has lead managed the highest number of issues i.e.10 SME IPOs; raising total Rs. 215 Crores on SME bourses. Interestingly SME IPOs have been receiving very encouraging response from all categories of investors and is being evaluated as a long term investment option by the investors. SME Platforms is said to have created its own space in capital markets and market analysts are quite positive on the growth of SME Exchange.

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