Claris Lifesciences Limited is to list on Monday the 20^th of December. The share would be listed on the BSE and NSE and a listing ceremony would be held at the BSE. The issue had opened on the 24^th of November and closed on the 26^th of November. The issue was to raise Rs 300 crs in a price band of Rs 278-293. The company had allotted 18.43 lac shares to anchor investors at a price of Rs 293. Unfortunately the issue did not receive adequate response and the price band was reduced by the maximum permissible 20% and the issue dates were extended.

The revised price band was Rs 228-233 and the extended dates were from the 29^th of November to the 2^nd of December. The issue in its second innings finally got subscribed and received total bids for 161.68 lakh shares and was subscribed 1.5 times. Compared to the basis of allotment one finds that the total demand which was 1,61,68,900 shares reduced by 27,28,494 shares to 1,34,40,406 shares. This effectively means that the issue which was subscribed 1.5 times became 1.24 times due to withdrawals in all segments. QIB’s saw withdrawals of roughly 5.8% of the bids, HNI’s saw a withdrawal of 31.5% of the bids and retail investors saw withdrawals of 24.43%.

The allotment to anchor investors as per SEBI guidelines remains at the allotted price of Rs 293. At this price they are at a loss of Rs 75 per share or 32.89% of the final issue price of Rs 228. It may also be mentioned that since the concept of Anchor Investors was introduced in July 2009, this is the first issue where there was an anchor investor allotment and the price band was revised post the poor performance of the issue. It is also the first time that a company has been forced to reduce the price band by the maximum permissible reduction of 20%. With so many firsts and so many concerns one must be careful about this share and any investment in the same even post listing.

The issue of Claris Lifesciences Limited had issues regarding a company “Core Healthcare Limited”, which was promoted by a relative (father) of the present promoter of the company. It also had issues regarding quality and was issued a warning letter by USFDA as recently as 1^st November 2010. Considering the fact that this was a company which is manufacturing injectables, this was a serious concern and accordingly this website had recommended that the issue be not subscribed.

It would be interesting to note how this share fares and what is the performance in the short term and also in the medium term considering all the concerns about the issue.