India: Healthcare scrips Alkem, Dr Lal Pathlabs list at robust premium on debut

Visual from Alkem Labs website

Shares of healthcare firms Alkem Laboratories Ltd and Dr Lal Pathlabs Ltd, opened 31.43% and 30.4% higher from their respective issue price of Rs.1,050 and Rs.550 per share, following their successful initial public offering (IPO) earlier this month.

Shares of Alkem Lab opened at Rs.1,380 and touched a high ofRs.1,401.40 a share or 33.47% higher from its listing price. At 10:02am, Alkem Lab was trading at Rs.1,360.50 on BSE, up 29.6%.

Shares of Dr Lal PathLabs Ltd opened at Rs.717 and touched a high of Rs.740.60 a share or 34.65% higher from its listing price. At 10:02am, Dr Lal PathLabs was trading at Rs.732.90 on BSE, up 33.25%.

Generic drug maker Alkem Labs raised Rs.1,350 crore through its share sale which closed on 10 December. The IPO was oversubscribed 44 times, with the high net worth individual category subscribed nearly 130 times.

According to pharma market researcher IMS, Alkem is the fifth largest pharma company in the domestic market. The firm is engaged in the development, manufacture and sale of pharmaceutical and neutraceutical products.

For fiscal year 2014-15, Alkem’s domestic and international operations accounted for 74.7% and 25.3% respectively of the net revenues from operations. In fiscal year 2014-15, it reported a revenue of Rs.3,177.3 crore, up 19% over the previous year’s Rs.2,672.9 crore. In 2015, it reported a net profit of Rs.437 crore against Rs.440.2 crore the previous year.

Alkem’s consolidated revenue rose at an annual rate of 22.3% from fiscal year 2011 to 2015. The firm’s international business contributes around 25.3% of its revenue, while the rest comes from the domestic business. The firm has a total of 16 manufacturing facilities, with 14 manufacturing facilities at five locations in India and two in the US.

Diagnostics firm Dr Lal Pathlabs, which operates a chain of 172 laboratories across the country, had raised Rs.632 crore through its IPO, which also closed on 10 December. Its share sale was oversubscribed 33 times with institutional investors placing bids worth 63 times the allocated amount.

The firm, which was founded in 1949, reported a revenue ofRs.662.5 crore in 2014-15 and a profit of Rs.95 crore. The company’s revenues have grown at a compounded annual growth rate of 20.7% over the last three financial years.

The Delhi-based company plans to expand its presence in North and East India, while also looking to grow in selected cities in other parts of the country.

Last week, Dr Devi Shetty’s Narayana Hrudayalaya raised Rs.613 crore through an initial share sale. Narayana’s IPO was subscribed over 8 times.

More healthcare firms are planning initial share sales. These include oncology firm Healthcare Global Enterprises Ltd, hospital chain Aster DM Healthcare and diagnostics firm Thyrocare Technologies Ltd.

So far this year, 21 companies have raised almost Rs.13,600 crore crore through IPOs.

Also Read: India: Narayana Hrudayalaya IPO subscribed over eight times

Narayana Hrudayalaya raises $27m from Singapore’s GIC, other anchor investors ahead of IPO

India: Dr Lal PathLabs, Alkem Labs IPOs launch on higher side of price band

This article was first published on Livemint.com

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.