Parabolic Drugs debuts marginally up on BSE
Shares of Parabolic Drugs Ltd debuted on the BSE marginally above its issue price of 75 rupees but later fell more than 12 per cent.
By Agencies |
MUMBAI: Shares of Parabolic Drugs Ltd debuted on the BSE marginally above its issue price of 75 rupees but later fell more than 12 per cent.
The bulk drugmaker has raised 2 billion rupees through its 26.6- million-share initial public offer (IPO) that closed on June 17. The issue comprises sale 2.02 million equity shares by existing private equity investors BTS India and Alden global (Mauritius), along with a reservation of 500,000 shares for employees, it said in the statement. "The listing has been good and post the IPO, our debt-equity ratio stands at one is to one," Vinit Gupta, director, Parabolic Drugs, told ET NOW television channel.
The Chandigarh-based firm, which makes active pharmaceutical ingredients and provides contract research and manufacturing services (CRAMS), plans to invest about 466.2 million rupees of the proceeds in its unit Parabolic Research Labs, it said in a statement. It would also repay a debt of 388.4 million rupees, it added. "We do not plan to raise any debt or equity over next three years," Gupta added told ET NOW.
"Since the company does not have a specialised product or formulation, the shares would not be popular with investors to begin with," Siddhant Khandekar, analyst, Sunidhi Securities & Finance, said. At 10:42 a.m., shares of Parabolic Drugs, which listed at 76.8 rupees a share, extended losses to 67 rupees, down 10.6 per cent on its issue price in a Mumbai market that was down 1.07 per cent.
The bulk drugmaker has raised 2 billion rupees through its 26.6- million-share initial public offer (IPO) that closed on June 17. The issue comprises sale 2.02 million equity shares by existing private equity investors BTS India and Alden global (Mauritius), along with a reservation of 500,000 shares for employees, it said in the statement. "The listing has been good and post the IPO, our debt-equity ratio stands at one is to one," Vinit Gupta, director, Parabolic Drugs, told ET NOW television channel.
The Chandigarh-based firm, which makes active pharmaceutical ingredients and provides contract research and manufacturing services (CRAMS), plans to invest about 466.2 million rupees of the proceeds in its unit Parabolic Research Labs, it said in a statement. It would also repay a debt of 388.4 million rupees, it added. "We do not plan to raise any debt or equity over next three years," Gupta added told ET NOW.
"Since the company does not have a specialised product or formulation, the shares would not be popular with investors to begin with," Siddhant Khandekar, analyst, Sunidhi Securities & Finance, said. At 10:42 a.m., shares of Parabolic Drugs, which listed at 76.8 rupees a share, extended losses to 67 rupees, down 10.6 per cent on its issue price in a Mumbai market that was down 1.07 per cent.
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