The offer for sale from the promoter and promoter group of Alkem Laboratories limited received excellent response from the investing public. The issue which comprised of 128.53 lac shares in a price band of Rs 1020-1050 by way of offer for sale was subscribed 44.29 times overall. The anchor book had received excellent response and there were 25 anchor investors comprising of 47 entitites which were allotted 37,66,358 shares at the top end of the band of Rs 1,050.
The retail portion was subscribed 3.17 times and there were in all 6.26 lac applications received. This in fact means that the retail portion on the basis of lot size was subscribed about two times and every alternate investor would be allotted shares. The HNI portion was subscribed 129.96 times and the cost of funding at an average of 8% for 8 days would mean a cost of RsRs 239 per share. This becomes the safety net for retail investors and if the price of Alkem Laboratories falls below Rs 1,290 on listing day which is the issue price and cost of leverage, there could be pressure in the share.
Full details of the subscription are given below: –

From the above table one can see the levels of subscription in various categories. The only surprise was the employee quota which remained undersubscribed even though there was a substantial Rs 100 per share discount to the employees. In any case it was a well-received IPO.