Nov 29, 2016 05:14 PM IST | Source: CNBC-TV18

Laurus Labs IPO to kick off on Dec 6, price band Rs 426-428/sh

Hyderabad-based pharmaceutical company Laurus Labs will open its initial public offering for subscription on December 6 and close on December 8. It has fixed price band at Rs 426-428 per shares.

Hyderabad-based pharmaceutical company Laurus Labs will open its initial public offering for subscription on December 6 and close on December 8. It has fixed price band at Rs 426-428 per shares.

The offer consisted of fresh issue of equity shares aggregating up to Rs 300 crore and an offer for sale of 2,41,07,440 equity shares by the selling shareholders namely Aptuit (Asia) Private Limited, Bluewater Investment, FIL Capital Management (Mauritius) and Fidelity India Principals.

"We are raising about Rs 300 crore from primary market. Current investors are selling 24 million shares," said CEO Satyanarayana Chava.

In an interview to CNBC-TV18, the company's Chief also said close to Rs 225 crore of the Rs 300 crore raised will be used for retiring long-term debt.

The company will focus on backward and forward integrations. It has 30 Abbreviated New Drug Applications (ANDAs) under development.

Laurus Labs will not receive any proceeds from the offer for sale and all proceeds from the offer for sale will go to the selling shareholders. It proposed to use net proceeds from the fresh issue towards pre-payment of term loans and general corporate purposes.
 
Kotak Mahindra Capital Company, Citigroup Global Markets India, Jefferies India and SBI Capital Markets are the book running lead managers to the offer. Equity shares are proposed to be listed on the BSE and National Stock Exchange of India.

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