The offer for sale from the promoters and private equity investors of Dr Lal PAthlabs was oversubscribed 33.41 times. The company had tapped the markets with its offer for sale of 1.16 cr shares in a price band of Rs 540-550 with a discount of Rs 15 to retail investors. The company had earlier allotted 34.80 lac shares to 15 anchor investors comprising of 26 entities.

The QIB portion was subscribed 63.56 times and the HNI portion almost similar at 61.28 times. The cost of leverage based on this subscription at 8% interest for 8 days comes to Rs 59 per share. The retail portion was subscribed 4.24 times and the issue received 5.60 lac applications implying that on per lot basis the retail portion is subscribed about 2.75 times on basis of lot. This would indicate that for every 11 applicants there would be 4 successful in the retail category.

The details of subscription is given below: –

From the above it is clear that the issue has received good response from all categories and though the pricing was considered steep, the lack of organised players in the listed space helped. Performance post listing would be a key for the company going forward.

Dr Lal Path Labs Limited(Dr Lal) which is tapping the capital markets with its offer for sale of 1.16 cr shares completed allocation to anchor investors yesterday. The company allotted 34.80 lac shares at the top end of the band at Rs550to 15 anchor investors comprising of 26 entities. The list includes many well known names and is fairly exhaustive. The issue which has a price band of Rs540-550, opens today and closes on Thursday the 10^th of December.

It’s probably after a long time that one is likely to see a liquidity crunch with two large issues running simultaneously, a tax free bond issue opening on the same day coupled with advance tax due on the 15^th of December. All this put together would squeeze the leveraged investor and make him pay more for the rupee that he borrows. This would also significantly increase the cost of borrowing for the HNI’s who would be applying in the issues of Dr Lal and Alkem Laboratories which would be raising roughly Rs 2,000 crs.

The full list of anchor investors and entities is given below:-

Alkem Laboratories Limited which is tapping the capital markets with its offer for sale of 128.53 lac shares completed allocation to anchor investors yesterday. The company allotted 37,66,358 shares at the top end of the band at Rs 1,050 to 25 anchor investors comprising of 47 entities. The list includes almost all the local funds and a host of international ones. The issue which has a price band of Rs 1020-1050, opens today and closes on Thursday the 10th of December.