The initial public offer of Claris Lifesciences was subscribed 1.5 times. The IPO got bids for 1.61 crore shares, compared with 1.07 crore shares on offer.
The qualified institutional investors (QIB) category was subscribed 1.31 times, the non-institutional investors category, comprising high networth individuals and corporates, was subscribed 2.03 times and the retail investors portion was subscribed 1.6 times.
The company had slashed the price band for the IPO and had also extended the IPO closing date after a poor response to the issue. The IPO, which was to initially end on 26 November 2010 was extended till 2 December 2010. The company had slashed the IPO price band to Rs. 228-235 per share from earlier Rs. 278-Rs 293.
Claris Lifesciences, on 23 November 2010, raised Rs. 54 crore by selling 18.43 lakh shares to four anchor investors at Rs. 293 per share.
Claris Lifesciences plans to utilise the IPO money to set up a new manufacturing unit, a research and development unit and for pre-payment of a term loan. The Ahmedabad-based firm is one of the largest Indian sterile injectables pharmaceutical companies.
Claris Lifesciences reported a consolidated net profit of Rs. 57.73 crore on total sales of Rs. 324.95 crore for the five month ended May 2010.
Arjun Handa, managing director and CEO, said the Rs 300 crore raised through its initial public offer (IPO) would be utilised for increasing its manufacturing capacity and other expansion plans.
The leading sterile injectables pharmaceutical company had fixed a price band of Rs 278-293 for its public offer. However, since the company received a lukewarm response, it had extended the closing date of the IPO and also lowered its price-band to Rs 228-Rs 235.
The company plans to set up a new plant comprising a small volume parenterals line, a PVC bag line, a non-PVC bag line and a fat emulsion line. “We would be setting up a new manufacturing line for propofol and other fat emulsion products at our existing plant, Clarion IV and also construct a facility for research and development at our Clarion manufacturing facilities,” Handa said.