Shares of Zen Technologies soared by 5 percent, hitting an all-time high of Rs 1,876 on August 26, following a successful Rs 1,000 crore fundraising through its maiden qualified institutional placement (QIP).
The QIP, which was launched on August 21, 2024, and concluded on August 23, 2024, was met with overwhelming demand, being oversubscribed by five times. This strong investor interest highlights confidence in Zen Technologies' growth prospects.
Zen Technologies, a prominent provider of defense simulation training equipment and counter-drone solutions, allocated 62,46,096 equity shares with a face value of Re 1 each to qualified institutional buyers (QIBs) at Rs 1,601 per share. This pricing was set at around 5 percent discount to the QIP floor price of Rs 1,685.18 per share as stipulated by SEBI regulations.
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Key investors in this QIP included Kotak Mutual Fund, White Oak Offshore Fund, White Oak Mutual Fund, Motilal Oswal Mutual Fund, and Bandhan Mutual Fund, among others.
For the quarter ending June, Zen Technologies reported a net profit of Rs 74.18 crore, marking a 92 percent increase from the previous year. The company's operational EBITDA also saw a significant rise, reaching Rs 103.2 crore compared to Rs 66.17 crore a year earlier.
The total order book is currently valued at Rs 1,158.54 crore, primarily comprising training simulators and anti-drone systems. Zen Technologies' R&D expenditure for Q1FY25 was Rs 6.99 crore, and the management aims to optimise the business model to reduce volatility and boost profitability in the future.
Recently, Zen Technologies launched four new products: the Hawkeye anti-drone system, Barbarik URCWS, Prahasta quadruped, and Sthir Stab 640 stabilized sight, which are expected to open new revenue streams. The company is also exploring partnerships with OEMs and considering strategic acquisitions to further enhance its business.
So far this year, shares of Zen Tech more-than-doubled or surged over 136 percent, beating benchmark Nifty 50's 12 percent rise.
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