Alkem Labs IPO to open on Dec 8, price band Rs 1020-1050/sh

Moneycontrol Bureau

Mumbai-based Alkem Laboratories is set to launch its initial public offer of 1.28 crore equity shares for subscription on December 8. The company has fixed price band at Rs 1020-1050 per share.

The company aims to raise more than Rs 1,300 crore through this issue. It is an offer for sale by selling shareholders, which includes a reservation of up to 2,98,913 equity shares for subscription by eligible employees who are getting a discount of Rs 100 on the offer price.

"Company will not receive any proceeds of the offer and all the proceeds will go to selling shareholders," says the company in its prospectus filed with the SEBI.

The offer will constitute up to 10.75 percent of post-offer paid-up equity share capital of the company.Promoter and promoter group's shareholding will reduce to 66.23 percent from 70.87 percent post offer.

Bids can be made for minimum of 14 equity shares and in multiples of 14 shares thereafter. The issue will close on December 10, 2015.

Alkem has reported a strong performance in six months period ended September 2015. Profit shot up 152 percent year-on-year to Rs 431.3 crore and revenue rose over 34 percent to Rs 2,659 crore in H1FY16.

Equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange. Axis Capital, Edelweiss Financial Services, JP Morgan India and Nomura Financial Advisors are book running lead managers to the issue.