Monday, November 29, 1999

Parabolic IPO gets 76pc demand by Day 2

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New Delhi, Jun 16 (PTI) Pharma firm Parabolic Drugs'' Rs 200 crore initial public offer (IPO) got subscribed 76 per cent by the end of the second day today, with most of the bids coming in from qualified institutional buyers (QIBs). The issue got total bids for 2.02 crore shares as against 2.66 crore on offer, thus getting subscribed 76 per cent, as per the National Stock Exchange data. The Parabolic issue got enthusiastic response from QIBs, and under the new provision, the book-building for QIBs has already closed today, a day before the issue ends for other participants (HNIs and retail investors). For high networth individuals and retail investors, the IPO closes tomorrow. The issue opened on June 14. Among the QIBs, the offer received bids for Rs 150 crore as against shares worth Rs 100 crore reserved for them, getting oversubscribed by 1.5 times. Sources said, some big fund houses including, UTI, ICICI Prudential and Reliance Capital, have put in bids. According to analysts, this significant response from the QIBs would in turn bolster the confidence of the HNIs and the retail investors to subscribe for the issue. However, till the end of second day today, the issue was almost unsubscribed in HNIs and retail categories. The is priced Rs 75-85 per share. Avendus Capital & ICICI Securities are the book-running lead managers to the issue. Parabolic aims to utilise Rs 46 crore from proceeds to set up a research facility in Panchkula in Haryana and about Rs 40 crore towards debt repayment. Currently, the company has two full-fledged manufacturing facilities at Derabassi, Punjab, and Panchkula.

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