Eager to cash in on the renewed investor interest for public issues, many companies are gearing up to launch their initial public offers (IPOs). The confidence of these companies has received a boost as some recent listings got a positive reception at the stock exchanges.
On December 8, the IPO of Dr Lal PathLabs will open for subscription as the company looks to raise more than Rs 600 crore. The company has fixed a price band between Rs 540 and Rs 550 per equity share. The Delhi-based diagnostic major is entering the capital market to provide an exit to some of the promoter and investor shareholders such as WestBridge Crossover Fund, Sanjeevni Investment Holdings and Wagner.
The company will offer a discount of up to Rs 15 to retail bidders. The issue will close on December 10.
The IPO of Dr Lal PathLabs will be followed by Alkem Laboratories’s public offer that is expected to raise approximately Rs 1,500 crore from the capital markets, according to Prime Database, a primary market tracker.
The rush among companies to launch their offers stems from the fact that the recent past saw positive post-listing performance by many companies that hint at strong investor interest.
Incidentally, as many as 18 companies have listed on the exchanges this year and 11 of those are trading above the issue price. The share price of VRL Logistics, which listed on April 30, has gained almost 118% compared to its issue price of Rs 205. On Monday, its shares closed at Rs 445.60 on BSE.
Shares of InterGlobe Aviation, Syngene International and PNC Infratech have all gained more than 40% since listing. Interglobe Aviation, which manages private carrier Indigo, listed on November 10 and is already up 45.12% at Rs 1,110.15 compared to its issue price of Rs 765. Some other companies that have seen the share price rise post-listing are Prabhat Dairy, Manpasand Beverages, Navkar Corporation, Shree Pushkar Chemicals and Fertilisers, S H Kelkar and Company and Inox Wind.
