The initial public offering (IPO) of Hyderabad-based Indian pharmaceuticals company Laurus Labs Limited received 29 per cent subscription on the first day of the issue on Tuesday.
According to the stock-exchange data, the issue received bids for 62,09,420 shares as against 2,19,11,308 on offer. The Institutional investors led the subscription with their quota of shares covering almost 71 per cent, a media report said.
The non-institutional investors — corporate bodies and wealthy individuals — received bids for 16 per cent of the shares reserved. The retail investors covered about 10 per cent, as per the data.
The company, which has six manufacturing units in Visakhapatnam (Vizag), makes generic bulk drugs for therapeutic areas of antiretroviral and Hepatitis C. The company seeks to increase its capacity of 1 billion tablets per annum to 5 billion by June next year.
Laurus Labs has raised Rs 395.4 crore by selling shares to anchor investors including Goldman Sachs AMC, HBM Partners, Nomura and a group of domestic institutional investors such as mutual funds.
The company issued shares to anchor investors at the upper end of the Rs 426-428 price band. The IPO will close on December 8.
The total size of the offering is about Rs 1,360 crore. This comprises Rs 300 crore to be raised through a fresh issue of shares and the remaining via a sale of shares by existing shareholders.
Laurus Labs aims to use the IPO money to repay term loans and for general corporate purposes.
The company announced a consolidated revenue of Rs 1,783.77 crore from operations in 2015-16 compared with Rs 1,326.59 crore in 2014-15. The consolidated net profit was Rs 132.65 crore for 2015-16 compared with Rs 68.36 crore the previous year.
Laurus Labs is seeking to join a string of healthcare companies that have made successful debuts on stock markets over the past year. These include diagnostics chains Dr Lal PathLabs Ltd, Thyrocare Technologies Ltd and hospital chain Narayana Hrudayalaya Ltd.