Laurus Labs receives Sebi Nod for IPO

Laurus Labs, the Drug

ingredients maker has
been given the approval
by markets regulator
Sebi's go ahead to float an
initial public offering.
Hyderabad-based
firm
had filed IPO papers with
Sebi in the month of
August. The markets
regulator issued its final
view on October 10 on
the draft offer documents,
which is mandatory for
any company to launch
the public offer.
Laurus Labs has filed its DRHP (draft red herring prospectus) with SEBI
(Securities and Exchange Board of India) to float its initial public offering
(IPO), since the Visakhapatnam-based drug ingredients maker wishes to join a
string of healthcare companies that have made remarkable debuts on stock
markets over the past year.
The suggested IPO is a mix of a fresh issue of shares totaling up to Rs 300
crore and an offer for sale by shareholders involving private equity firm
Warburg Pincus, which is part-exiting. The drug firm is eyeing to raise money
to repay term loans and for general corporate purposes.

For the last few years many healthcare companies have floated IPOs
successfully including diagnostics chains Thyrocare and Lal Path Labs and
hospital chain Narayana Hrudayala , which was listed previously this year.

Here's a snapshot of Lauras Labs and the issue

Size- According to the draft papers, the public issue constitutes fresh issue of
shares valued at Rs. 300 crore and an offer for sale of 24,844,240 equity scrips
by the current shareholders, which includes Warburg Pincus group and Eight
Roads Ventures.

Object of the Issue- Proceed of this issue would be utilized for the
payment of loans and for general corporate purposes. The firm plans to use
the money for partial repayment of long-term borrowings. Approximately Rs
1,115.28 crore is the aggregate bank loans that the firm has availed and was
outstanding as of 30 June 2016. This included foreign currency loan of $41.82
million .

Bankers- This issue is being managed by Citigroup Global Markets India

Kotak Mahindra Capital Company, Jefferies India and SBI Capital Markets.
In the month of June, Aster DM Healthcare Ltd, which operates hospitals in
India and the Middle East, also filed its DRHP with the capital markets
regulator. One more healthcare company, eye-care chain New Delhi Centre
For Sight, has also been given SEBI approval for its IPO.
Laurus Labs is a noted research and development driven pharma company in
India, with a leadership position in generic active pharmaceutical ingredients
for select, high-growth therapeutic areas of anti-retrovirals and Hepatitis C.
At present, the company now also has a rising synthesis and
nutraceutical/cosmeceutical ingredients businesses, and a combined generics
finished dosage forms business. The company functions three manufacturing
facilities in Visakhapatnam, Andhra Pradesh. It is setting up two new

manufacturing facilities, one for potent APIs and the other for APIs,
intermediates and ingredients.

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The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal
views of the research team. Users are advised to use the data for the purpose of information and rely on their own
judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

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Article Written by
Madhurima Chowdhury