 "Alkem, Dr Lal IPOs oversubscribed a day before close")
Alkem Laboratories Ltd and Dr Lal PathLabs, which launched their initial public offerings (IPO) on Tuesday, witnessed strong investor interest, with 35 per cent and 65 per cent subscription, respectively. The two together proposed to raise Rs 2,000 crore.
The two IPOs saw encouraging demand from retail and institutional investors despite the benchmark indices correcting over four per cent in the last six sessions.
The Rs 1,300-crore IPO of Alkem, one of the country’s leading pharmaceutical company, was subscribed 1.41 times on Wednesday. The institutional investor segment of the IPO was subscribed 2.33 times, high networth individual (HNI) portion was subscribed 64 per cent and retail quota was subscribed 1.27 times.
Meanwhile, Dr Lal, the country’s leading medical diagnostic firm, has received nearly three times subscription. The institutional investor segment for Dr Lal’s IPO was subscribed 6.12 times, the HNI portion was subscribed 57 per cent and the retail quota was subscribed 1.56 times.
On Monday, both the companies had seen shares in the anchor category getting lapped up by marquee institutional investors.
Investment bankers said retail participation in both the IPOs is encouraging and they expect huge oversubscriptions from HNIs on the last day.
The retail participation in Alkem and Dr Lal IPOs are in contrast to the recent IPOs by InterGlobe Aviation and Coffee Day Enterprises, which were given a miss by small investors. Brokers said investors are attracted towards the IPOs due to the attractive premiums in the grey market. They said both IPOs are commanding a premium of 20 per cent in the grey market.
The two IPOs saw encouraging demand from retail and institutional investors despite the benchmark indices correcting over four per cent in the last six sessions.
The Rs 1,300-crore IPO of Alkem, one of the country’s leading pharmaceutical company, was subscribed 1.41 times on Wednesday. The institutional investor segment of the IPO was subscribed 2.33 times, high networth individual (HNI) portion was subscribed 64 per cent and retail quota was subscribed 1.27 times.
Meanwhile, Dr Lal, the country’s leading medical diagnostic firm, has received nearly three times subscription. The institutional investor segment for Dr Lal’s IPO was subscribed 6.12 times, the HNI portion was subscribed 57 per cent and the retail quota was subscribed 1.56 times.
On Monday, both the companies had seen shares in the anchor category getting lapped up by marquee institutional investors.
Investment bankers said retail participation in both the IPOs is encouraging and they expect huge oversubscriptions from HNIs on the last day.
The retail participation in Alkem and Dr Lal IPOs are in contrast to the recent IPOs by InterGlobe Aviation and Coffee Day Enterprises, which were given a miss by small investors. Brokers said investors are attracted towards the IPOs due to the attractive premiums in the grey market. They said both IPOs are commanding a premium of 20 per cent in the grey market.
Alkem fixed the price band for its IPO at Rs 1,020-1,050 a share, while Dr Lal priced it at Rs 540-550 a share. Both the IPOs, which close on Thursday, are offer for sale by promoters and shareholders and are not raising any capital by issue of fresh shares.