Zota Health Care To Pump Rs 350 Crore Into Dawa India, Plans 1,500 Stores In Two Years

Zota Health Care Ltd. has successfully closed its Qualified Institutional Placement (QIP) at Rs 350 crore, with the entire fund earmarked for expanding its retail pharmacy chain, Dawa India. The company plans to open 1,200–1,500 stores over the next two years, according to Director Himanshu Zota.

Speaking on the fundraise, Himanshu Zota said, “Originally, we had planned up to Rs 500 crore, but later the management decided to raise Rs 300 crore plus Rs 100 crore green shoe option. The QIP closed successfully at Rs 350 crore.”

The funds will be deployed exclusively in Dawa India, Zota Health Care's private retail-centric pharmacy chain. “In the same light, we will open more stores of Dawa India,” Zota added.

The company expects each store to generate monthly revenue of Rs 2–2.5 lakh in its early stages, scaling up to Rs 6–7 lakh as the store matures over three to four years.

Davaindia Generic Pharmacy, a brand of Zota Healthcare, has changed the Indian healthcare scenario by providing high-quality generic medicines at a very low cost. Davaindia Generic Pharmacy offers a comparative cost benefit of up to 90% on generic medicines, and significant savings on medicine costs.

Zota Health Care's fundraising committee approved the allotment of 22.8 lakh equity shares to qualified institutional buyers at Rs 1,535 per share, aggregating to Rs 349.99 crore. Following the allotment, the company's paid-up equity share capital rose from Rs 30.89 crore to Rs 33.17 crore.

The scrip rose as much as 2.18% to Rs 1,583 apiece. It pared later gave up gains to trade 0.12% lower at Rs 1,547 apiece, as of 15:15 p.m. This compares to a 0.81% advance in the NSE Nifty 50 Index.

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