Despite volatility in the secondary markets, initial public offerings (IPO) of Alkem Laboratories and Dr Lal PathLabs managed to get fully subscribed on the second day of the three-day issue. At 5 pm the IPO of Alkem was subscribed 1.41 times while the public issue of Dr Lal PathLabs was subscribed 1.24 times, stock exchanges data showed. Both the companies put together would raise close to Rs 2,000 crore from the primary markets.
The success of both the IPOs was on back of strong response from the qualified institutional buyers (QIBs). The QIB book of Alkem was subscribed 2.33 times as 58.58 lakh bids were received from qualified institutional buyers against 25.11 lakh reserved for the category. In Dr Lal PathLabs issue, 34.08 lakh subscriptions were received from QIBs against 23.2 lakh shares reserved for them taking the subscription to 1.47 times.
Even the retail book of both the companies managed to get fully subscribed. Retail portion of Alkem was subscribed 1.28 times while retail book of Dr Lal PathLabs was subscribed 1.41 times, data showed. This is in contrast with last few initial public offerings where retail books received tepid response. The initial public offering of InterGlobe Aviation last month was subscribed 6.15 times, however the retail book received less than 100% subscription.
Alkem is a pharmaceutical company with global operations, engaged in the development, manufacture and sale of pharmaceutical and neutraceutical products. For fiscal year 2015, it was the fifth largest pharmaceutical company in India in terms of domestic sales.
Dr Lal PathLabs is a provider of diagnostics and related healthcare tests and services in India. The New Delhi-based company has a catalogue of 1,110 test panels, 1,934 pathology tests and 1,561 radiology and cardiology tests to undertake the entire gamut of routine and specialised tests. Customers include individual patients, companies and institutions, healthcare providers as well as hospital and clinical labs.
So far 18 companies have raised close to Rs 11,000 crore from the primary markets during CY15, Prime Data showed.
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