Medicamen Organics IPO Creates Frenzy with 315x Oversubscription; GMP Indicates 147% Premium

Medicamen Organics, a pharmaceutical firm, has garnered immense investor interest as its IPO is oversubscribed 315 times on the final day of bidding. Investors have bid for over 70 crore shares against the available 22 lakh shares.

Grey Market Premium (GMP) Signals High Expectations

The company’s shares are trading at a grey market premium (GMP) of Rs 50, reflecting a 147% premium over the upper price band of Rs 34. This suggests strong potential for significant gains for investors upon listing.

The IPO, which consists entirely of fresh equity issuance totaling 31 lakh shares, aims to raise approximately Rs 10.5 crore. It has allocated 50% of the shares to Qualified Institutional Buyers (QIBs), 35% to retail investors, and the remaining 15% to other investors.

Utilization of IPO Proceeds

Proceeds from the IPO will fund international product registrations, plant upgrades, capacity expansion, working capital, and general corporate purposes. Medicamen Organics specializes in manufacturing a wide range of pharmaceutical products including tablets, capsules, syrups, and ointments for both government and private institutions.

The Indian pharmaceutical market is expected to grow significantly, reaching $130 billion by 2030, while the global pharmaceutical market is projected to surpass $1 trillion in 2024.

Financial Performance

In the financial year ending March 2024, Medicamen Organics reported revenues of Rs 25.27 crore and a net profit of Rs 2.4 crore.

GYR Capital Advisors is managing the IPO, and Kfin Technologies is the registrar.