An Indore-based pharmaceutical contract manufacturer plans to raise Rs 49.80 crore via the NSE SME platform.
Bio Medica Laboratories Ltd., a pharmaceutical contract manufacturer specialising in parenteral (injectable) medicines, opens for subscription on May 21 with the issue closing on May 25. The company is listing on the NSE SME Emerge platform. The issue has a combination of a fresh issue and a small Offer for Sale.
What the Company Does
Bio Medica Laboratories manufactures pharmaceutical products in the B2B segment, with the majority of its business coming from contract manufacturing for established pharmaceutical companies who sell products under their own brand names. Its core expertise is in parenteral formulations — injectable solutions, liquid vials, and dry powder injectables — which are complex, regulated pharmaceutical forms that require sophisticated manufacturing infrastructure and strict quality controls.
The company operates from two manufacturing units in the Industrial Area, Sanwer Road, Indore, Madhya Pradesh, and had 56 employees on its payroll as of April 30, 2026.
A material and critical disclosure from the offer document: Manufacturing Unit 1 at this location was suspended by the Deputy Director and State Licensing Authority, Food and Drug Administration, Madhya Pradesh, citing non-compliance under the Drugs and Cosmetics Rules. The company is currently prohibited from carrying out production at this facility, and if the licence is ultimately cancelled, a fresh application process — which is time-consuming — would be required. This is the most significant operational risk attached to this issue.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | May 21, 2026 |
| Issue Closes | May 25, 2026 |
| Listing | NSE SME Emerge (May 29, 2026) |
| Price Band | Rs 132 – Rs 139 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 49.80 crore |
| Fresh Issue | Rs 44.56 crore |
| OFS | Rs 5.24 crore |
| Lot Size | 1,000 shares (min 2 lots = 2,000 shares) |
| Min. Retail Investment | Rs 2,78,000 |
| BRLM | Narnolia Financial Services Ltd. |
| Registrar | Skyline Financial Services Pvt. Ltd. |
| Market Maker | Prabhat Financial Services Ltd. |
Financial Performance
| Particulars (Rs cr) | FY23 | FY24 | FY25 | 8M FY26 |
|---|---|---|---|---|
| Revenue | 16.25 | 15.34 | 38.33 | 28.63 |
| PAT | 0.33 | 2.50 | 9.50 | 8.66 |
| PAT Margin | 2.06% | 16.39% | 25.64% | 30.35% |
| RoCE | 10.16% | 29.92% | 48.20% | 23.24% |
| D/E ratio | — | — | — | 2.23 |
Revenue was flat between FY23 and FY24 before a sharp jump to Rs 38.33 crore in FY25, followed by continued momentum in 8M FY26. The PAT margin expansion from 2.06% in FY23 to 30.35% in 8M FY26 is extraordinary for a contract pharma manufacturer, particularly given the operational disruption at Manufacturing Unit 1.
Risks to Consider
The suspension of Manufacturing Unit 1 by the Drug Controller is the most critical risk — it restricts production at one of the two facilities and could, in a worst case, require a full licence re-application. The debt-to-equity ratio of 2.23 as of November 30, 2025 is elevated, and the company has not paid any dividends.
Operating cash flows have been negative, which combined with high reported profits in recent periods raises questions about cash conversion. The top five customers contributed 67.58% of FY25 revenue, indicating significant customer concentration.
Analyst View
Analysts note that the company’s financial data in recent periods appears inflated, with the bumper top and bottom line performance from FY25 onwards raising concern over sustainability. The sharp improvement in margins from a very low base in FY23 and FY24, arriving just ahead of the IPO, invites scrutiny, point out analysts. Despite these concerns, the issue is fully priced, say analysts.