Adlabs Entertainment IPO gets muted initial response

IPO subscribed 3% until 16:00 IST on day one

The initial public offer (IPO) of Adlabs Entertainment saw muted response from investors on the first day of the bidding for the IPO today, 10 March 2015. The IPO received bids for a total 4.43 lakh shares until 16:00 IST compared with 2.03 crore share on offer, as per NSE data. The IPO was subscribed 3%. Excluding 27.22 lakh equity shares to be allotted to anchor investors, 1.76 crore shares are on offer now. The IPO closes on Thursday, 12 March 2015.

A day before the opening of the IPO, Adlabs Entertainment yesterday, 9 March 2015, raised Rs 60.15 crore from a total of five anchor investors viz. Daiwa India Stock Active Mother Fund, HDFC Infrastructure Fund, Axis Mutual Fund, L&T Mutual Fund and Forefront Alternative Investment Trust. These five anchor investors subscribed to the Adlabs Entertainment shares at Rs 221 per share -- the lower end of the Rs 221-230 per share price band for the IPO.

The IPO of Adlabs Entertainment comprises fresh issue of 1.83 crore equity shares and an offer for sale of 0.2 crore shares by Thrill Park, part of the promoter group. The issue offers a discount of Rs 12 on the issue price to retail individual bidders. The object of the issue is to repay or pre pay loan up to Rs 330 crore from a consortium of bankers. The rest is for general corporate purpose in addition to achieving the benefits of listing the equity shares on stock exchanges such as enhancing visibility and brand image among existing and potential customers and providing liquidity to the existing shareholders.

Adlabs Entertainment owns and operates Imagica-The Theme Park, Aquamagica-The water Park and family hotel Novotel Imagica Khapoli. Spread over 132 acres in Khalapur, 74 km from Mumbai, the theme park became fully operational from November 2013 and features 25 rides and attractions of international standards, multi cuisine food and beverages (F&B) outlets, and retail and merchandise shops.

Adlabs Entertainment reported a net loss of Rs 53.52 crore on revenue of Rs 72.15 crore for the period of six months ended September 2014. In the year ended March 2014, revenue stood at Rs 103.69 crore and loss Rs 52.42 crore.

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