Adlabs lowers price band for IPO, extends issue closure date

Theme park operator Adlabs Entertainment today lowered its IPO price band to Rs 180-215 per share and extended the issue closure date to March 17, amid tepid response from institutional investors.

The issue portion reserved for retail investors has already been fully subscribed.

"The issue closure date has been extended upto March 17, 2015. Post issue modification date has been revised to March 18, 2015. Price band has been revised from Rs 221-230 to Rs 180-215 per share," as per a notice at the NSE.

Bankers said that the price revision, accompanied with the extension of the issue period, will make the issue pricing more investor friendly and will enable a wider set of investors, including institutional and non-institutional investors to participate in the issue.

The issue which had opened for subscription on March 10, for sale of 1,76,04,092 shares, received bids for 75,66,000 shares, or 43 per cent, till 1600 hours today.

As per data available at the NSE till yesterday, retail investors' portion was subscribed 35 per cent. The portion reserved for qualified institutional buyers (QIBs) was subscribed 18 per cent and non institutional investors received 9 per cent subscription.

The overall issue, including the anchor investor portion, is sale of up to 20,326,227 equity shares, which includes a fresh issue of 18,326,227 equity shares and an Offer for Sale of 20 lakh shares by promoter entity Thrill Park Limited.

Adlabs Entertainment is promoted by Manmohan Shetty and Thrill Park.

Deutsche Equities India Private Limited, Centrum Capital Limited and Kotak Mahindra Capital Company Limited are the book running lead manager to the issue.

The company owns and operates Imagica, one of the leading theme parks in India. The company's portfolio also includes Aquamagica, a water park that became fully operational last year, and family hotel, Novotel Imagica Khopoli, the first phase of which is expected to be completed this month.