Laurus Labs IPO: A healing touch in uncertain markets

Laurus Labs, a leading pharmaceutical R&D company, is known for manufacturing Active Pharmaceutical Ingredients for anti-retroviral and Hepatitis C. The IPO of the company started off well and subscribed 28% on day one i.e. December, 6. Of the 28% subscription; 71% was from QIB, 16% from HNI, 10% from retail and remaining from employees.

The IPO of Laurus Labs has received bids for 62.09 lakh shares as against 2.19 crore shares on offer. The IPO consisted of fresh issue of Rs 300 crore and the offer for sale of 2.41 crore shares, or Rs 1032 crore at upper price band by the selling shareholders. The price band of the IPO has been fixed at Rs 426 to Rs 428 per share.

IPO's selling shareholders are Aptuit, Bluewater, FIL Capital Management and FIP (acting through its trustee FIL Capital Advisors). Its anchor investors include international players such as Goldman Sachs AMC, HBM Partners, Nomura, Eastspring; while domestic players such as Birla MF, DSP Blackrock, ICICI Prudential AMC, SBI MF and HDFC Life. The company proposes to utilise the net proceeds from the fresh issue towards the pre-payment of term loans and general corporate purposes. The book running lead managers to the offer are Kotak Mahindra Capital Company, Jefferies India Private, Citigroup Global Markets India and SBI Capital Markets.

Laurus Labs has reported consolidated net profit of Rs 75.10 crore on total revenue of Rs 941.78 crore during H1FY17.The company operates in four business lines: generic APIs, generic FDFs, synthesis and ingredients. Its 80 per cent revenue comes from exports while 20% from domestic market. It serves companies like Natco, Mylan, Cipla, etc.