After receiving overwhelming response from the retail as well as institutional investors for their initial public offerings (IPOs), both Dr. Lal Pathlabs and Alkem Laboratories today opened 31.42% and 30.36% higher over their respective issue price of Rs. 550 and Rs. 1,050.
Dr Lal Path Labs closed with super gains of 52% at Rs 834.50 per share as against an issue price of Rs 550 per share. The intraday high of the share was Rs 843.70 per share.
The promoter and promoter group raised the aforementioned amount via an offer for sale issue of 1.16 crore equity shares. According to the company’s Chairman Dr Arvind Lal, the IPO proceeds will not be utilized for any particular purpose as of now. The company has ample cash to meet business expenses and expansion costs.
The Delhi-based company has a pan-India presence with a strong network of 172 clinical laboratories 1,554 patient service centers and over 7,000 pickup points. The company also plans to expand its footprints in neighboring Asian countries.
Alkem Laboratories, India’s fifth largest domestic drug maker, raised Rs. 1,350 crore via its IPO which was open from December 8-10, 2015. The public issues was over-subscribed 44.29 times. The QIB quota was over-subscribed by 57.19 times, while in non-institutional segment, the issue was over-subscribed by 129.96 times.
Reinstating the faith of retain investors in the primary market, the IPO received 3.17 times subscription from retail investors.