Zen Technologies' shares jumped 5%, reaching an all-time high of Rs 1,876 on August 26 following a successful Rs 1,000 crore fundraising through its first qualified institutional placement (QIP).
The QIP, which began on August 21, 2024, and ended on August 23, 2024, was met with enormous demand, being oversubscribed five times. This high level of investor interest demonstrates confidence in Zen Technologies' future potential.
Zen Technologies, a well-known producer of defense simulation training equipment and counter-drone solutions, issued 62,46,096 equity shares having a face value of Re 1 each to qualified institutional buyers (QIBs) for Rs 1,601 per share. This pricing was fixed at a 5% discount to the QIP floor price of Rs 1,685.18 per share, as required by SEBI regulations.
This QIP's key investors were Kotak Mutual Fund, White Oak Offshore Fund, White Oak Mutual Fund, Motilal Oswal Mutual Fund, and Bandhan Mutual Fund, among others.
Zen Technologies reported a net profit of Rs 74.18 crore for the quarter ending June 30, a 92% increase over the previous year. The company's operating EBITDA increased significantly, hitting Rs 103.2 crore from Rs 66.17 crore a year earlier.
The overall order book is presently valued at Rs 1,158.54 crore, with training simulators and anti-drone equipment accounting for the majority. Zen Technologies' R&D spend for Q1FY25 was Rs 6.99 crore, and the management intends to improve the business model to decrease volatility and increase profitability in the future.
Zen Technologies has introduced four new products: the Hawkeye anti-drone system, Barbaric URCWS, Prahasta quadruped, and Sthir Stab 640 stabilized sight, which are intended to provide new income streams. In addition, the company is looking at OEM agreements and strategic acquisitions to help it grow further.
Zen Tech shares have more than doubled or soared over 136 percent this year, outperforming the benchmark Nifty 50's 12% advance.
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