Medicamen Organics IPO booked 916 times at close; GMP at 147% over issue price

The SME IPO of Medicamen Organics is getting a robust response from investors with an overall subscription of 916 times on the last day of the bidding process. The issue received bids for just over 203 crore shares as against an offer size of 22 lakh shares.

In line with the robust investor demand, the company's shares are trading with a GMP of Rs 50 in the unlisted market. Considering the upper price band of Rs 34, this translates to a premium of 147%. If the current trends sustain, the stock is expected to fetch multibagger returns to investors on debut.

However, it is important to note that grey market premiums are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly.


The IPO is completely a fresh equity issue of 31 lakh shares and through the issue, the company plans to raise around Rs 10.5 crore. About 50% of the offer is reserved for QIB investors, 35% for retail investors and the rest 15% for other investors.

The net proceeds from the public offer will be used for product registration in the international markets, plant updation and increase in production capacity, working capital requirements and other general corporate purposes.

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Medicamen Organics is engaged in developing, manufacturing and distribution of broad range of pharmaceutical dosage including generic dosage in form of Tablets, Capsules, Oral Liquids, Ointments, Gel, Syrups, Suspension and Dry powders for government (including both state and central governments) and private institutions as contract manufacturer.

According to a recent EY FICCI report, there has been growing consensus over providing new innovative therapies to patients. The Indian pharmaceutical market is estimated to touch $130 billion in value by the end of 2030. Meanwhile, the global market size of pharmaceutical products is estimated to cross over the $1 trillion mark in 2024.

For the period ended March 2024, the company clocked revenues of Rs 25.27 crore and net profit of Rs 2.4 crore.

GYR Capital Advisors is acting as the lead manager to the issue and Kfin Technologies is the registrar.