Bio Medica Laboratories Files DRHP For IPO

Mumbai, August 8, 2025: Bio Medica Laboratories Limited, a pharmaceutical manufacturer of injectables based in Indore, Madhya Pradesh, has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO) on the NSE Emerge platform. The company is seeking to raise capital through this public issue.

The proposed IPO comprises up to 37,71,600 equity shares with a face value of ₹10 each. This includes a fresh issue of up to 33,94,800 equity shares and an offer for sale of up to 3,76,800 equity shares by promoters Mukesh Mehta and Pradeep Mehta. After the IPO, the promoters will jointly hold a 70% stake in the company.

Incorporated in 2015, Bio Medica Laboratories operates on a B2B contract manufacturing model. The company manufactures ethical, generic, and over-the-counter injectables in both liquid and dry powder form. Its products are used for both human and veterinary applications.

Some insights for investors

• Strong growth track record
  Revenue surged from ₹16.23 crore in FY23 to ₹38.20 crore in FY25, with profits rising sharply from ₹0.33 crore to ₹9.79 crore, showing strong business momentum.
• High profitability and returns
  ROE of nearly 100% and EBITDA margin close to 40% reflect strong operational efficiency compared to peers.
• Use of funds focused on growth
  A major portion of IPO proceeds will expand production capacity, which could drive future sales and profitability.
• Debt reduction planned
  Part of the funds will repay loans, improving the company’s balance sheet and lowering interest costs.
• Competitive edge in niche manufacturing
  Specialises in injectable formulations for both human and veterinary use under a B2B contract model, reducing marketing expenses.
• Risks to consider
  Small-scale operations, dependency on a few clients, and negative operating cash flow in FY25 may impact short-term liquidity.
• NSE Emerge listing
  Being listed on the SME platform means lower liquidity compared to main board stocks, so price movement can be more volatile.

Offer Structure and Allocation

Of the total shares offered, 1,89,600 equity shares are reserved for the market maker. The remaining 35,82,000 shares, known as the net issue, will be allocated to Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs) in accordance with the NSE Emerge listing rules.

Use of Proceeds

The net proceeds from the fresh issue will be utilised as follows:

Financial Performance Snapshot (₹ Lakh)

Bio Medica Laboratories has demonstrated strong financial growth, with a significant increase in its Revenue from operations from ₹1,622.82 lakh in FY23 to ₹3,819.52 lakh in FY25. Over the same period, its Profit After Tax grew substantially from ₹33.35 lakh to ₹979.49 lakh. The company’s Net Worth expanded from ₹243.95 lakh in FY23 to ₹1,473.30 lakh in FY25, supported by a rise in its Share Capital from ₹10.00 lakh to ₹918.00 lakh. Its Earnings Per Share (EPS) also saw a remarkable increase, from ₹0.36 in FY23 to ₹10.67 in FY25. As of March 31, 2025, the company’s total borrowings stood at ₹1,501.44 lakh, comprising ₹676.48 lakh in long-term borrowings and ₹824.96 lakh in short-term borrowings.

Comparison with Industry Peers

Bio Medica Laboratories’ key financial metrics compare favourably with its peer group. As of the period ended 31st March 2025, the company reported an EPS of ₹10.67, significantly higher than Zenotech Laboratories’ ₹0.92 and Shukra Pharmaceuticals’ ₹0.22. Its Return on Net Worth (RoNW) was also very strong at 99.59%, dwarfing Zenotech’s 6.01% and Shukra’s 15.90%. The company’s Profit After Tax (PAT) of ₹979.49 lakh was higher than both Zenotech’s ₹561.29 lakh and Shukra’s ₹957.53 lakh. The NAV per Share for Bio Medica was ₹16.05, slightly higher than Zenotech’s ₹15.76 and considerably higher than Shukra’s ₹1.43.

Key Performance Indicators (KPIs)

The company’s key performance indicators show a trend of strong growth and improving financial health. The Revenue from operations grew by 150.47% in FY25, a strong rebound after a slight decline in the previous year. EBITDA increased significantly to ₹1,521.33 lakh in FY25, with the EBITDA Margin reaching 39.83%. The company’s Return on Capital Employed (ROCE) and Return on Equity (ROE/RoNW) also showed remarkable growth, rising to 48.20% and 99.59% respectively in FY25. The Current Ratio improved to 1.83 in FY25 from 0.89 in FY23, indicating better liquidity. However, the company’s Operating Cash Flow was negative at −₹367.17 lakh in FY25, compared to positive cash flows in the previous two years.

Key Intermediaries

Narnolia Financial Services Limited is the Book Running Lead Manager for the issue, while Skyline Financial Services Private Limited is the registrar. The shares are proposed to be listed on the NSE Emerge platform, subject to all necessary approvals.

REF: https://nsearchives.nseindia.com/emerge/corporates/content/Registration_08082025220555_DRHP_Bio_Medica.pdf

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