New Delhi, May 29 (H.S.): Bio Medica Laboratories, a pharmaceutical sector company, disappointed IPO investors today by making a sharply negative debut on the stock market. The company’s shares were issued at ₹139 apiece under its Initial Public Offering (IPO). However, the stock was listed on the NSE SME platform at ₹111.20, reflecting a steep 20 percent discount to the issue price.

Following the weak listing, heavy selling pressure emerged almost immediately, dragging the stock down to its lower circuit limit of ₹105.65 within a short span of trading. As a result, IPO investors suffered a loss of ₹33.35 per share, equivalent to 23.99 percent, on the very first day of trading.

The ₹52.43 crore IPO of Bio Medica Laboratories had opened for subscription between May 21 and May 25. The issue received an average response from investors and was subscribed 2.26 times overall. The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 15.94 times, while the Non-Institutional Investors (NIIs) category received subscriptions worth 1.30 times. Similarly, the retail investors’ segment was subscribed 2.92 times.

Under the IPO, the company issued 3.732 million equity shares with a face value of ₹10 each. This included approximately 3.206 million fresh shares worth around ₹45 crore and 377,000 shares worth nearly ₹5 crore sold through the Offer for Sale (OFS) route. In addition, 189,000 fresh shares worth around ₹3 crore were allotted to the market maker.

The funds raised through the sale of fresh shares will be utilised for expanding production capacity, reducing existing debt, meeting working capital requirements, and for general corporate purposes.

Speaking about the company’s financial condition, the Draft Red Herring Prospectus (DRHP) filed with capital markets regulator Securities and Exchange Board of India (SEBI) stated that despite minor fluctuations, the company’s financial health remained strong.

The company posted a net profit of ₹33 lakh in FY 2022-23, which increased to ₹2.50 crore in FY 2023-24 and further surged to ₹9.79 crore in FY 2024-25. During the period from April 2025 to November 30, 2025, in FY 2025-26, the company had already recorded a net profit of ₹8.66 crore.

During the same period, the company’s revenue witnessed fluctuations. It earned total revenue of ₹16.25 crore in FY 2022-23, which declined slightly to ₹15.34 crore in FY 2023-24 before rising sharply to ₹38.33 crore in FY 2024-25. Between April and November 2025 in FY 2025-26, the company had already generated revenue of ₹28.63 crore.

Meanwhile, the company’s debt burden increased steadily throughout this period. At the end of FY 2022-23, the company’s debt stood at ₹9.61 crore. This increased to ₹10.49 crore in FY 2023-24 and further jumped to ₹15.01 crore in FY 2024-25. During April-November 2025 in FY 2025-26, the company’s total debt surged significantly to ₹38.17 crore.

The company’s reserves and surplus also registered steady growth. These stood at ₹2.34 crore in FY 2022-23, rising to ₹4.84 crore in FY 2023-24. In FY 2024-25, reserves and surplus increased further to ₹5.55 crore, while during April-November 2025 in FY 2025-26, they climbed to ₹7.94 crore.

Similarly, the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) stood at ₹1.70 crore in FY 2022-23, which increased to ₹5.63 crore in FY 2023-24. In FY 2024-25, EBITDA rose sharply to ₹15.21 crore. During April to November 2025 in FY 2025-26, EBITDA stood at ₹13.45 crore.

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Hindusthan Samachar / Jun Sarkar