Quest Laboratories Ltd IPO Timeline

Quest Laboratories Ltd IPO opens on 15-May-2024, and closes on 17-May-2024. The Quest Laboratories Ltd IPO bid date is from 15-May-2024 to 17-May-2024. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

Event Date
Quest Laboratories Ltd IPO Opening Date 15-May-2024
Quest Laboratories Ltd IPO Closing Date 17-May-2024
Basis of Allotment 21-May-2024
Initiation of Refunds 22-May-2024
Credit of Shares to Demat 22-May-2024
Quest Laboratories Ltd IPO Listing Date 23-May-2024

Quest Laboratories Ltd IPO Lot Size

Quest Laboratories Ltd IPO lot size is 1200 shares. A retail-individual investor can apply for up to 1 lots (1200 shares or 116400).

Application Lots Shares Amount
Minimum 1 1200 ₹116400
Maximum 1 1200 ₹116400

Quest Laboratories Ltd IPO Details

Quest Laboratories Ltd IPO Date 15-May-2024 to 17-May-2024
Quest Laboratories Ltd IPO Face Value Shares of ₹10 per share
Quest Laboratories Ltd IPO Price ₹93 to ₹97 per share
Quest Laboratories Ltd IPO Lot Size 1200
Issue Size Shares of ₹10 (aggregating up to ₹43.16 Cr)
Fresh Issue Shares of ₹10 (aggregating up to ₹43.16 Cr)
Offer for Sale -
Issue Type Book Building - SME
Listing At NSE - SME
QIB Shares Offered -
Retail Shares Offered -
NII (HNI) Shares Offered -
Company Promoters Anil Kumar Sabarwal, Tejaswini Sabarwal.

Objects of the Issue

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • 1 Funding of capital expenditure towards purchase of plant and machinery for expansion at the existing mfg facility
  • 2 Funding working capital requirements of the company
  • 3 General corporate purposes

Company Financials

Quest Laboratories Ltd Financial Information (Restated)

Period Ended Total Assets Total Revenue Profit After Tax
03-2024 59.29 82.79 10.09
03-2023 46.94 61.87 5.04
03-2022 34.80 59.54 4.10
Amount in ₹ Crore
  • Multi-product capability.
  • Revenue from Government institutions.
  • Product Portfolio.
  • Research and Development.
  • Quality assurance.
  • Experienced Promoter and management team.
  • Supply Chain Efficiency.
  • The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
  • Any manufacturing or quality control problems may disrupt its business operations, damage the company reputation for high quality production and expose it to potential litigation or other liabilities, which would negatively impact its business, prospects, cash flows, results of operations and financial condition.
  • The Company is reliant on the demand from the pharmaceutical industry for a significant portion of its revenue. Any downturn in the pharmaceutical industry or an inability to increase or effectively manage its sales could have an adverse impact on the Company's business and results of operations.
  • The products that the company commercialize may not perform as expected which could adversely affect its business, financial condition and results of operations.
  • Any manufacturing or quality control problems may damage its reputation for high quality products and expose the company to litigation or other liabilities, which could adversely affect its financial results.
  • The availability of counterfeit drugs, such as drugs passed off by others as its products, could adversely affect the company goodwill and results of operations.
  • Its business is dependent and will continue to depend on the company's manufacturing facility, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in the company manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.
  • Its existing manufacturing facility are concentrated in a single region i.e., Pithampur, Indore, Madhya Pradesh and the inability to operate and grow its business in this particular region may have an adverse effect on the company business, financial condition, results of operations, cash flows and future business prospects.
  • The company highly depends on its major raw materials on many of the suppliers who help it procure the same. The Company has not entered into long-term agreements with its suppliers for supply of raw materials. In the event the company is unable to procure adequate amounts of raw materials, at competitive prices its business, results of operations and financial condition may be adversely affected.
  • Too much concentration of its Business is from sale to government which may impact the company's Business.
  • The company depends on the success of its relationships with the company customers. Its derive a significant part of the company revenue from its top 10 customers and the company does not have long term contracts with these customers. If one or more of such customers choose not to source their requirements from it, the company's business, financial condition and results of operations may be adversely affected.
  • The company conduct its business activities on a purchase order basis and therefore, have not entered into long-term agreements with its customers except government contracts.
  • If the company cannot respond adequately to the increased competition its expect to face, the company will lose market share and its profits will decline, which will adversely affect its business, results of operations and financial condition.
  • The company does not own the land on which its manufacturing facility and registered office is situated.
  • The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.
  • There are certain discrepancies/errors/delay filings noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future, for non- compliance with provisions of corporate or any other law could impact the financial position of the Company to that extent.
  • The Company's failure to maintain the quality standards of the products or keep pace with the technological developments could adversely impact its business, results of operations and financial condition.
  • Its expansion into new product categories and business verticals and increase in the number of products offered may expose it to new challenges and more risks.
  • The company may not be able to accurately manage its inventory, this may adversely affect the company goodwill and business, financial condition and results of operations.
  • The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its results of operations.
  • The company has not placed orders for plant and machinery / Equipments. In case of any escalation in prices of these Equipments, its total project cost may increase which in turn will adversely affect the company financials.
  • Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 81 of this Draft Red Herring Prospectus, the Company's management will have flexibility in applying the proceeds of the Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.
  • The company is dependent on third-party transportation providers for the supply of raw materials and finished products.
  • The Company logo "QUEST LABORATORIES LTD." is not registered with Registrar of Trademark; any infringement of its brand name or failure to get it registered may adversely affect its business. Further, any kind of negative publicity or misuse of its brand name could hamper the company brand building efforts and its future growth strategy could be adversely affected.
  • In case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate its business it may have a material adverse effect on the company's business.
  • There are certain discrepancies and non- compliances noticed in some of its financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.
  • The company has contingent liabilities, and its financial condition could be adversely affected if any of these contingent liabilities materializes.
  • Its success largely depends upon the knowledge and experience of the company Promoters, Directors, its Key Managerial Personnel and Senior Management as well as the company's ability to attract and retain personnel with technical expertise. Any loss of its Promoter, Directors, Key Managerial Personnel, Senior Management or its ability to attract and retain them and other personnel with technical expertise could adversely affect its business, financial condition and results of operations.
  • Its depends on skilled personnel and if the company is unable to recruit and retain skilled personnel, its ability to operate or grow the company business could be affected.
  • Its business involves usage of manpower and any unavailability of the company employees or any strikes, work stoppages, increased wage demands by workmen or changes in regulations may have an adverse impact on its cash flows and results of operations.
  • Its business is subject to various operating risks at the company sites, the occurrence of which can affect its results of operations and consequently, financial condition of the Company.
  • The Company requires significant amounts of working capital for a continued growth. Its inability to meet the company working capital requirements may have an adverse effect on its results of operations.
  • As the company continue to grow, its may not be able to effectively manage the company growth and the increased complexity of its business, which could negatively impact the company brand and financial performance.
  • Its business is dependent on the adequate and uninterrupted supply of electrical power at a reasonable cost. The Company does not have suitable power back-up to meet power failure exigencies. Failure on account of unavailability of electrical power may restrict it in utilizing its full capacity and, hence, may impact the company's business and results of operation.
  • The orders placed by customers may be delayed, modified or cancelled, which may have an adverse effect on its business, financial condition and results of operations.
  • Introduction of alternative pharmaceutical products caused by changes in technology or consumer needs may affect demand for its existing products which may adversely affect the company financial results and business prospects.
  • The nature of products the company deal into are prone to attracting litigation and long trials. In the event of any checking of its products by the respective authority, its may be drawn up into prolonged litigations thus adversely affecting its operations.
  • The regulatory uncertainty associated with pharmaceutical pricing, reimbursement and related matters could adversely affect the marketing, pricing and demand for its products.
  • Stricter marketing norms prescribed by a new code of conduct in India for companies doing business in the pharmaceuticals industry could affect its ability to effectively market the company products which may affect its profitability.
  • Compliance with, and changes in safety, health and environmental laws and regulations may adversely affect its business, prospects, financial condition and results of operations.
  • Unsecured loans taken by the Company can be recalled by the lenders at any time.
  • Any increase in interest rates would have an adverse effect on its results of operations and will expose the Company to interest rate risks.
  • Its loan agreements with various lenders have several restrictive covenants and certain unconditional rights in favour of the lenders, which could influence its ability to expand, in turn affecting the company business and results of operations.
  • The company has taken guarantees from its directors in relation to debt facilities provided to the company.
  • Its business may expose the company to potential product liability claims, which could adversely affect its results operation, goodwill and the marketability of the company products.
  • Failure or disruption of the company IT, manufacturing automation systems may adversely affect its business, financial condition and results of operations.
  • Its ability to pay dividends will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and other factors.
  • Its Promoter and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.
  • The company might infringe upon the intellectual property rights of others and any misappropriation of its intellectual property could harm the company competitive position.
  • Employee misconduct including misuse of confidential data and failure to maintain confidentiality of information could harm it and is difficult to detect and deter.
  • Industry information included in this Draft Red Herring Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
  • Information relating to the installed manufacturing capacity of its manufacturing facilities included in this Draft Red Herring Prospectus are based on various assumptions and estimates and future production and capacity may vary.
  • If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
  • Its Directors, Key Managerial Personnel and Senior Management may have interests other than reimbursement of expenses incurred and normal remuneration or benefits in the Company.
  • The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
  • The Company has entered into related party transactions in the past and may continue to enter into related party transactions in the future, which may potentially involve conflicts of interest with the equity shareholders.
  • The company may not be fully insured for all losses its may incur.
  • An investment in the Equity Shares is subject to general risk related to investments in Indian Companies.
  • The determination of the Price Band is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares upon listing on the Stock Exchange.
  • Its Equity Shares have never been publicly traded, and may experience price and volume fluctuations following the completion of the Issue. Further, its Equity Shares may not result in an active or liquid market and the price of its Equity Shares may be volatile and you may be unable to resell your Equity Shares at or above the Issue Price or at all.
  • The company has issued Equity Shares during the last one year at a price below the Issue Price.
  • There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the NSE Emerge in a timely manner or at all.
  • Any future issuance of Equity Shares may dilute your shareholding and sale of its Equity Shares by the company Promoters or other shareholders may adversely affect the trading price of the Equity Shares.
  • There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder's ability to sell for the price at which it can sell, equity shares at a particular point in time.
  • Investors may be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.
  • Significant differences exist between Indian GAAP and other accounting principles, such as US GAAP and IFRS, which may be material to investors assessments of the Company's financial condition. Its failure to successfully adopt IFRS may have an adverse effect on the price of its Equity Shares. The proposed adoption of IFRS could result in its financial condition and results of operations appearing materially different than under Indian GAAP.
  • Foreign investors are subject to foreign investment restrictions under Indian law that limits its ability to attract foreign investors, which may adversely impact the market price of the Equity Shares.
  • Its promoter Mr. Anil Kumar Sabarwal has in one of the matters against him, been sentenced for imprisonment and he has filed an appeal against the said order in the higher court. The company is not sure whether the said appeal shall be decided in favour of its promoter and in the event of any adverse decision, the operations of the Company shall be adversely affected.
  • Expansion and upgradation of its manufacturing facility.
  • Expand its Geographical Presence.
  • Widen its product portfolio.
  • Continue to improve operating efficiencies through technology enhancements.

Quest Laboratories Ltd IPO Promoter Holding

Pre Issue Share Holding 88.58%
Post Issue Share Holding 64.52%

Quest Laboratories Ltd IPO Subscription Status (Bidding Detail)

The Quest Laboratories Ltd IPO is subscribed 57.2621 times on May 17, 2024 05:00:00 PM. The public issue subscribed - times in the retail category, - times in the QIB category, and - times in the NII category. Check Day by Day Subscription Details (Live Status)

Category QIB NII Retail Employee Total
Subscription (times) - - - - 57.2621

Quest Laboratories Ltd IPO Prospectus

Quest Laboratories Ltd IPO Listing Date

Listing Date 23 May 24
BSE Script 92906
NSE Symbol QUESTLAB
Listing In NSE - SME
ISIN INE0TNW01017
IPO Price ₹97
Face Value ₹10

Quest Laboratories Ltd IPO Registrar

Bigshare Services Pvt Ltd

Phone: 022 - 6263 8200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com

Quest Laboratories Ltd IPO Lead Manager(s)

  1. Shreni Shares Ltd

FAQs on Quest Laboratories Ltd IPO

Quest Laboratories Ltd IPO, which opens for subscription from 15-May-2024 to 17-May-2024 has an issue size of ₹43.16 crore. The issue type is book building issue.

In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Quest Laboratories Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.

Quest Laboratories Ltd IPO Opens for subscription from 15-May-2024 to 17-May-2024.

The lot size of Quest Laboratories Ltd is 1200 shares. Retail investors can subscribe to minimum 1 lot and maximum 1 lots. The minimum and maximum application value is ₹116400 and ₹116400 respectively.

Allotment date for Quest Laboratories Ltd is 21-May-2024 and refund of application amount (in case allotment is not received) will begin from 22-May-2024. If your allotment goes through, then shares will be credited in your Demat account by 22-May-2024.

The registrar for Quest Laboratories Ltd IPO is Bigshare Services Pvt Ltd . You can check your IPO allotment status on the registrar's website.

The shares of Quest Laboratories Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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