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 chainNarayana 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.

Source : https://www.dynamiclevels.com/en/blog/laurus-labs-receives-sebi-nod-for-ipo