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Business News/ Market / Stock-market-news/  Laurus Labs IPO subscribed 61% on Day 2
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Laurus Labs IPO subscribed 61% on Day 2

Laurus Labs IPO received bids for 1,33,29,155 shares as against total issue size of 2,19,11,308 scrips as per NSE data

The price band of Laurus Labs shares has been fixed at Rs426-428 for the offer.Premium
The price band of Laurus Labs shares has been fixed at Rs426-428 for the offer.

New Delhi: The initial public offering of Laurus Labs Ltd was subscribed 61% at the end of the second day of the bidding process, receiving bids for 13.3 million equity shares against the issue size of 21.9 million, data available with the stock exchanges showed.

At the end of day 2, the institutional investors portion was fully subscribed, while non-institutional investors, which include high-net-worth individuals, bid for around 54% of the portion reserved for them.

Retail investors, whose investments cannot exceed Rs2 lakh per individual, bid for 39% of the portion reserved for them at the end of day 2, data showed.

The drugmaker has set an IPO price band of Rs426-428 per share and seeks to raise as much as Rs1,332 crore through the IPO, which will close on 8 December.

Ahead of the opening of the IPO, the company also raised approximately Rs395 crore by selling shares to a group of 25 anchor investors.

The shares were allotted to the anchor investors at Rs428 per share, the top end of the IPO price band.

ALSO READ: Laurus Labs IPO subscribed 28% on Day 1

On day one, the share sale was subscribed 28%, receiving bids for 6.2 million equity shares against an issue size of 21.9 million.

The IPO comprises an issue of new shares and an offer for sale by Aptuit (Asia) Pvt. Ltd, Bluewater Investment Ltd, FIL Capital Management (Mauritius) Ltd and Fidelity India Principals.

The firm will utilise the proceeds the IPO money to repay term loans and for general corporate purposes.

Laurus Labs had filed papers with the Securities and Exchange Board of India in August and received regulatory clearance in October.

Advisers to the share sale are Kotak Mahindra Capital Co. Ltd, Citigroup Global Markets India Pvt. Ltd, Jefferies India Pvt. Ltd and SBI Capital Markets Ltd. The company plans to use the proceeds from the IPO for pre-payment of term loans and general corporate purposes, according to the share sale documents.

Laurus Labs makes active pharmaceutical ingredients for high-growth therapeutic areas such as antiretrovirals and Hepatitis C.

In the past one year, Dr Lal PathLabs Ltd, Thyrocare Technologies Ltd and hospital chain Narayana Hrudayalaya Ltd went public. Besides, Aster DM Healthcare Ltd also filed its documents for the proposed IPO in June.

Eye-care chain New Delhi Centre For Sight has already received Sebi approval for its public issue.

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Published: 07 Dec 2016, 07:49 PM IST
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