Vijaypd Ceutical Makes Modest Debut with 2.57% Premium, Lists at ₹35.90 Against Weak Subscription

Vijaypd Ceutical Limited, the pharmaceutical products and consumer goods distributor serving over 2,109 pharmacies, clinics, and nursing homes with access to 19,000 SKUs from 170 manufacturers, made a modest debut on NSE SME on October 7, 2025. After closing its IPO bidding between September 29-October 1, 2025, the company commenced trading flat at ₹35 and rose to ₹35.90 with gains of 2.57%.

Vijaypd Ceutical Listing Details

Vijaypd Ceutical Limited launched its IPO at ₹35 per share with a minimum investment of 8,000 shares costing ₹2,80,000. The IPO received weak response with a subscription of just 1.37 times — individual investors at 0.89 times and NIIs at 1.86 times.

First-Day Trading Performance Outlook

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Listing Price: Vijaypd Ceutical share price opened at ₹35 representing no premium from the issue price, and rose to ₹35.90, delivering minimal gains of 2.57% for investors reflecting cautious market sentiment towards pharmaceutical distribution sector.

Growth Drivers and Challenges

Growth Drivers:

• Comprehensive Product Portfolio: Wide range including medicines (injections, tablets, capsules, ointments, suppositories, ophthalmic preparations), vitamins, hormones, enzymes, wellness tonics, diagnostic test kits, personal care items, ayurvedic products, cosmetics, food products, and dental products.
• Extensive Distribution Network: Serving 2,109 pharmacies, clinics, and nursing homes across four districts covering 20 locations, connected with 170+ healthcare product manufacturers providing access to 19,000+ SKUs ensuring comprehensive market reach.

Challenges:

• Profit Growth Sustainability Concerns: Boosted FY25 performance with 191% PAT growth appearing surprising given 98% revenue growth, raising questions about margin sustainability in competitive pharmaceutical distribution segment.
• Thin Margins and High Competition: Modest PAT margin of 4.49% and moderate EBITDA margin of 8.04% indicating minimal pricing power in highly competitive and fragmented business with elevated debt-to-equity ratio of 0.68.

Utilisation of IPO Proceeds

• Manufacturing Plant Setup: ₹10.83 crore for capital expenditure towards construction of pharmaceutical API/intermediates and chemicals manufacturing plant.
• Debt Reduction: ₹5.10 crore for repayment of borrowings improving financial leverage, reducing interest burden, and strengthening balance sheet.
• General Corporate Purposes: ₹0.74 crore supporting business operations and strategic initiatives for sustained growth in pharmaceutical distribution and manufacturing segments.

Financial Performance of Vijaypd Ceutical

• Revenue: ₹107.59 crore for FY25, showing exceptional growth of 98% from ₹54.34 crore in FY24, reflecting strong scaling in pharmaceutical and consumer goods distribution.
• Net Profit: ₹4.80 crore in FY25, representing extraordinary growth of 191% from ₹1.65 crore in FY24, though boosted performance raises sustainability concerns.
• Financial Metrics: Healthy ROE of 28.91%, moderate ROCE of 17.30%, elevated debt-to-equity ratio of 0.68, modest PAT margin of 4.49%, moderate EBITDA margin of 8.04%, and estimated market capitalisation of ₹70.11 crore.