Q-Line Biotech IPO Receives Strong Subscription, In Contrast, Bio Medica Labs' Public Issue Falls Short on Day One

IPO Subscription: Q-Line Biotech Sees Healthy Demand, Bio Medica Laboratories Under-Subscribed

On May 21, the initial public offerings (IPOs) of Q-Line Biotech and Bio Medica Laboratories saw contrasting subscription trends on their first day of bidding. While Q-Line Biotech's IPO witnessed a healthy subscription of 3.82 times, Bio Medica Laboratories' public issue was undersubscribed. Both offerings will remain open till May 25.

Q-Line Biotech's IPO: A Healthy Demand Q-Line Biotech, a diagnostic equipment and IVD products maker, approached the capital markets to raise Rs 214.5 crore via an initial public offering (IPO) of 62.53 lakh shares at the upper end of the price band of Rs 326-343 per share. The company attracted bids for 1.7 crore equity shares against the offer size of 44.72 lakh shares via 11,267 applications, thanks to the demand from across categories of investors.

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Non-institutional investors were at the leading position to boost Q-Line IPO's subscription numbers, bidding 5.2 times their allotted quota, while the portions set aside for qualified institutional buyers and retail investors were subscribed 4.14 times and 3.6 times, respectively.

Before the IPO opening for the public, Q-Line Biotech had already raised Rs 61.09 crore by issuing 17.81 lakh shares to 18 anchor investors, including Abakkus, Carnelian AIF, Bharat Venture Opportunities Fund, Tiger Strategies Fund, Finavenue Capital, HDFC Bank, 360 ONE, and Tattvam AIF Trust.

The company will spend its IPO proceeds mainly for its working capital requirements, and repayment of certain borrowings. And the remaining funds will be utilised for general corporate purposes.

Bio Medica Laboratories' IPO: Under-Subscribed Meanwhile, the initial public offering of Bio Medica Laboratories was subscribed at 68 percent with investors picking up 25.82 lakh shares against the offer size of 37.72 lakh shares via 997 applications.

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The pharmaceutical parenteral formulations manufacturer is raising Rs 52.4 crore via an IPO which comprises of fresh issuance of 33.95 lakh shares worth Rs 47.19 crore, and an offer-for-sale of 3.77 lakh shares worth Rs 5.24 crore by promoters.

The proceeds from the fresh issue will be utilised mainly for repayment of loan, and enhancement of its existing production capabilities by setting up of a new manufacturing facility at the existing premises. And the remainder funds will be kept aside for general corporate purposes.

Bio Medica Laboratories, which manufactures generic drugs in the form of injectables - liquid injections and dry powder injections - is valued at Rs 174.8 crore at the upper end of the price band of Rs 132-139 per share.

Hem Securities and Share India Capital Services are appointed as merchant bankers for the Q-Line Biotech IPO, while book running lead manager Narnolia Financial Services is managing the Bio Medica Laboratories IPO.