Alkem, Dr Lal IPOs attract bids worth a whopping Rs 81,000 crore

Mumbai: The initial public offerings of drug maker Alkem Laboratories and diagnostic chain Dr Lal PathLabs elicited robust investor response, with 44.23 times and 33.31 times over subscription, respectively, on the last day of bidding.

 Alkem, Dr Lal IPOs attract bids worth a whopping Rs 81,000 crore

The IPO of Alkem Lab generated demand worth about Rs 59,000 crore, as it received bids for 40,18,87,794 shares against the total issue size of 90,87,084 shares, according to the data available with the NSE till 1900 hrs.

Similarly, the IPO of Dr Lal generated demand worth Rs 21,000 crore, as it received bids for 27,04,74,780 shares as against the total issue size of 81,20,000 shares.

In Alkem IPO, the portion set aside for qualified institutional buyers (QIBs) was oversubscribed 57 times.

Retail investors category was oversubscribed 2.9 times, while high net worth individual category saw 129 times subscription, sources said.

For Dr Lal, the qualified institutional buyers (QIBs) category was oversubscribed 63 times. Retail investors portion was also oversubscribed 4.7 times, they added.

The two IPOs saw strong response from institutional and retail investors, even though the benchmark Sensex lost 1,133.36 points in the last six trading sessions.

Both the public issues managed to get over subscription on the second day of the three-day issue.

Prior to Alkem and Dr Lal's IPO, S H Kelkar, VRL Logistics, Power Mech Projects and Syngene International received strong response in terms of subscription so far this year.

Alkem Laboratories has raised Rs 395 crore from anchor investors, including Abu Dhabi Investment Fund, by allotting shares at a price of Rs 1,050.

The company fixed the price band at Rs 1,020-1,050 for the IPO, through which it aims to raise up to Rs 1,350 crore.

The global coordinators and book running lead managers (GCBRLMs) to the issue are Nomura Financial Advisory and Securities (India), Axis Capital Ltd, JP Morgan India Pvt Ltd and Edelweiss Financial Services Ltd.

Alkem plans to expand its footprint internationally. It had a portfolio of 705 brands in the domestic market as on September 30.

Dr Lal PathLabs raised over Rs 191 crore from anchor investors by selling shares at a price of Rs 550 apiece. The company, which aims to raise up to Rs 638 crore, fixed the price band at Rs 540-550 per share for its IPO.

Kotak Mahindra Capital Company and Citigroup Global Markets India Private are the book running lead managers to the issue.

PTI

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Updated Date: Dec 11, 2015 08:04:49 IST