Laurus Labs shares to list on bourses on December 19

NEW DELHI: Shares of Laurus Labs are going to be listed on BSE and NSE on Monday. The Rs 1,332 crore initial public offering ( IPO) of the drugmaker had received an overwhelming response from investors and it was subscribed over four times. The issue received bids for 10.02 crore shares against 2.19 crore shares on offer.

The company had fixed the price band at Rs 426-428 per equity share of face value of Rs 10 each. Kotak Mahindra Capital Company, Citigroup Global Markets India, Jefferies India and SBI Capital Markets were the book running lead managers for the issue.

The portion set aside for qualified institutional buyers (QIBs) was oversubscribed 10.54 times, while the HNI quota got 3.58 times subscription. The quota for retail investors was oversubscribed 1.67 times.

The company reported 41 per cent annual growth (CAGR) and 60.6 per cent growth in revenue and net profit, respectively, between FY12 and FY16. For the year ended March 31, 2016, the company reported total revenue of Rs 1,788.40 crore against Rs 452.30 crore in 2011-12. Net profit of the company increased to Rs 143.60 crore from Rs 21.60 crore during the same period.

Laurus Labs is a Hyderabad-based firm engaged in manufacturing of active pharma ingredients (API). It generates 80 per cent of its revenues from exports while the rest comes from the domestic market. Its client base features companies like Natco, Mylan, Cipla, etc. API is its largest segment which contributes 92 per cent of the revenues while rest 8 per cent comes from its synthesis and ingredients business.