Lovable IPO subscribed 10.33 times on Day 3

Mirroring a strong investor appetite, the women inner wear manufacturer Lovable Lingerie's initial public offer (IPO) got subscribed 10.33 times till 1600 hours on the third day of the issue today.

The company's IPO received bids worth Rs 3.9 crore against 38.67 lakh shares on offer till 1600 hrs hours on the first day, as per the data available on the National Stock Exchange.

Lovable Lingerie has entered the capital market with an IPO price band of Rs 195 to Rs 205 a piece. The bid, which opened for subscription on Women's Day will close today for the qualified institutional buyers and on March 11 for the non-institutional buyers.

The market experts said that the smart response to the company's IPO is in-line with their expectations as the issue is reasonably priced.

"The IPO of Lovable Lingerie has managed to garner an impressive demand despite the uncertain market conditions due to its attractive pricing," said an analyst.

The company plans to set up a manufacturing facility to create additional capacity at Bangalore.

Lovable Lingerie will use the issue proceeds for brand building of their 'college style' label and investment in joint ventures, setting up exclusive brand outlets, along with retail store modules for shop-in-shop and upgradation of design studios, other than general corporate purposes.

The issue has been graded by Credit Analysis and Research Limited (CARE), and has been assigned CARE IPO Grade-3, indicating average fundamentals.