Laurus Labs receives Sebi Nod for IPO

Laurus Labs, the Drug

ingredients maker has

been given the approval

by markets regulator

Sebi's go ahead to float an

initial public offering.

Hyderabad-based firm

had filed IPO papers with

Sebi in the month of

August. The markets

regulator issued its final

view on October 10 on

the draft offer documents,

which is mandatory for

any company to launch

the public offer.

Laurus Labs has filed its DRHP (draft red herring prospectus) with SEBI

(Securities and Exchange Board of India) to float its initial public offering

(IPO), since the Visakhapatnam-based drug ingredients maker wishes to join a

string of healthcare companies that have made remarkable debuts on stock

markets over the past year.

The suggested IPO is a mix of a fresh issue of shares totaling up to Rs 300

crore and an offer for sale by shareholders involving private equity firm

Warburg Pincus, which is part-exiting. The drug firm is eyeing to raise money

to repay term loans and for general corporate purposes.

For the last few years many healthcare companies have floated IPOs

successfully including diagnostics chains Thyrocare and Lal Path Labs and

hospital chain Narayana Hrudayala , which was listed previously this year.

Here's a snapshot of Lauras Labs and the issue

Size- According to the draft papers, the public issue constitutes fresh issue of

shares valued at Rs. 300 crore and an offer for sale of 24,844,240 equity scrips

by the current shareholders, which includes Warburg Pincus group and Eight

Roads Ventures.

Object of the Issue- Proceed of this issue would be utilized for the

payment of loans and for general corporate purposes. The firm plans to use

the money for partial repayment of long-term borrowings. Approximately Rs

1,115.28 crore is the aggregate bank loans that the firm has availed and was

outstanding as of 30 June 2016. This included foreign currency loan of $41.82

million .

Bankers- This issue is being managed by Citigroup Global Markets India

Kotak Mahindra Capital Company, Jefferies India and SBI Capital Markets.

In the month of June, Aster DM Healthcare Ltd, which operates hospitals in

India and the Middle East, also filed its DRHP with the capital markets

regulator. One more healthcare company, eye-care chain New Delhi Centre

For Sight, has also been given SEBI approval for its IPO.

Laurus Labs is a noted research and development driven pharma company in

India, with a leadership position in generic active pharmaceutical ingredients

for select, high-growth therapeutic areas of anti-retrovirals and Hepatitis C.

At present, the company now also has a rising synthesis and

nutraceutical/cosmeceutical ingredients businesses, and a combined generics

finished dosage forms business. The company functions three manufacturing

facilities in Visakhapatnam, Andhra Pradesh. It is setting up two new

manufacturing facilities, one for potent APIs and the other for APIs,

intermediates and ingredients.

Disclaimer The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision. Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Disclosure Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment Advisory Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of MCX & NCDEX. We declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on for certain operational deviations. Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research Analyst/ his Relative:

Do not have any financial interest / any actual/beneficial ownership in the subject company. Do not have any other material conflict of interest at the time of publication of the research report Have not received any compensation from the subject company in the past twelve months Have not managed or co-managed public offering of securities for the subject company. Have not received any compensation for brokerage services or any products / services or any compensation or

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Article Written by Madhurima Chowdhury