Bio Medica Laboratories Makes Lackluster Debut on NSE SME, Opens 20% Below Issue Price

Bio Medica Laboratories Witnesses Tepid Listing on Dalal Street

On Friday, 29 May, the shares of Bio Medica Laboratories made their debut on Dalal Street, opening at ₹111.20, a significant 20% discount to the initial public offering (IPO) price of ₹139 apiece. This tepid listing action was a stark contrast to the expectations signaled by the grey market premium (GMP), which had shown a slight improvement in the run-up to the IPO.

The Bio Medica Laboratories IPO, which was open for bidding from 21 to 25 May, had seen a subdued investor demand. The SME IPO was booked just 2.23 times, with the qualified institutional buyers (QIBs) leading the way, booking their segment at 15.94 times. The retail quota was booked at 2.88 times, while the non-institutional investor (NII) portion received just 1.30 times bids. The IPO details are as follows:

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The Bio Medica Laboratories IPO was a combination of a fresh share sale of ₹47.19 crore and an offer for sale of ₹5.24 crore, resulting in a total offer size of ₹52.43 crore. The SME IPO's shares were priced at ₹132 to ₹139 apiece. Investors could apply for the offer in lots of 1000 shares, with the retail investors required to bid for at least two lots, resulting in a minimum payout of ₹2,78,000 at the upper end of the issue.

The company plans to use the fresh proceeds from the share sale for repayment of loans, enhancement of existing capabilities by setting up a new manufacturing unit at existing premises, general corporate purposes, and issue expenses. Bio Medica Laboratories, incorporated in 2015, specialises in manufacturing pharmaceutical parenteral formulations, producing a wide range of ethical drugs, generic drugs, and over-the-counter (OTC) medications in liquid and dry-powder injectable forms. These injectables are available in both single-dose and multi-dose formats, serving the needs of both human and veterinary healthcare. The company operates on a B2B model, focusing exclusively on contract manufacturing.