The initial public offering of Laurus Labs Ltd neared 61 per cent subscription at the end of the second day on Wednesday with the quota for institutional investors, solely backed by global funds, fully subscribed, stock-exchange data showed.
The non-institutional investors — corporate bodies and wealthy individuals — received bids for 54 per cent of the shares reserved for them. The retail investors category was covered about 40 per cent, as per the data.
The IPO got 29 subscriptions on the first day.
The hyderabad-based 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 total size of the offering is about Rs 1,360 crore. This comprises Rs 300 crore through a fresh issue of shares and the remaining via a sale of shares by shareholders. Private equity firms Warburg Pincus and Eight Roads Ventures (formerly Fidelity Growth Partners) will partially exit while Welsh Carson Anderson & Stowe will sell its entire stake in the offering.
The firm aims to use the IPO money to repay term loans and for general corporate purposes.