Zen Technologies rides bulls to double share price within 3 months

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Zen Technologies completes ₹1000 crore QIP

By S Jha

New Delhi, August 25: Private Defence player Zen Technologies Limited is riding the bulls. The share price of the Zen Technologies Limited has doubled in less than three months.

The Hyderabad-based defence player has successfully raised ₹1000 crores through QIP mode. The QIP offerings were subscribed five times.

The Zen Technologies Limited is gaining attention of investors with stellar show on the Dalal Street. The share price of Zen Technologies Limited was trading at ₹900 on June 5.

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The share price of Zen Technologies Limited closed at ₹1784 on Friday. On August 22, the shares of Zen Technologies Limited hit ₹1810.

The rise in the share price of Zen Technologies Limited has come at a time when other defence sector companies saw correction in their shares. The shipyard companies – Cochin Shipyard, Mazagaon Dockyard Shipyard, and Garden Reach Shipyard – nearly corrected by 15-20 per cent in the last one month.

Zen Technologies is making its mark in the business of simulation training and counter-drone solutions. Big fund houses lapped the QIP offering of Zen Technologies Limited for ₹1000 crores.

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The Hyderabad-based company which had only a few years ago come out with an IPO is seeking further expansion in its operations.

The investors in the Zen Technologies Limited are drawing confidence that that the QIP was priced at ₹1601. This was just about 10 per cent discount from the market prices of the shares of Zen Technologies Limited.

At the time of the QIP placement, the shares of Zen Technologies Limited were trading just five per cent higher. The aggressive pricing of the QIP and successful subscriptions to the tune of five times are being seen positively for the future trajectory of the company.

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The likes of Kotak Bank and Bandhan Bank along with a few foreign fund houses have subscribed to the QIP of Zen Technologies Limited.

The management of Zen Technologies Limited has said that the company will be eying both organic and inorganic growth in the near future. The Hyderabad-based company is also eying to tap the export market.

While the wars in different regions show drones at the forefront, the anti-drone solutions of Zen Technologies Limited are being seen with hopes by the management of the company.

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The shares of Zen Technologies have the face value of ₹1. They are trading at PE multiple of 94.50. The high PE ratio of Zen Technologies Limited shows that the investors are paying high prices for their investments in the company.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

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