Q-Line Biotech IPO Sees Sizzling Demand, While Bio Medica Laboratories and Autofurnish Public Issues Receive Tepid Response on Final Day

Massive Response to Q-Line Biotech IPO, Tepid Demand for Bio Medica Laboratories and Autofurnish Issues

The initial public offerings (IPOs) of Q-Line Biotech, Bio Medica Laboratories, and Autofurnish concluded on May 25, with the diagnostic equipment and IVD products supplier's issue attracting a massive 95.31 times subscription, while the other two issues received a tepid response.

Q-Line Biotech, backed by Vikas Khemani, raised Rs 214.5 crore via an IPO of 62.53 lakh shares, with a price band of Rs 326-343 per share. During the subscription period from May 21-25, investors bid for 42.62 crore equity shares against the offer size of 44.72 lakh shares via 2.35 lakh applications. The demand was driven by non-institutional investors and qualified institutional buyers, who bid 146.3 times and 123.9 times their allotted quota, respectively. The portion set aside for retail investors was subscribed 71.4 times.

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Q-Line Biotech manufactures reagents, in-vitro diagnostics (IVD), pathology equipment, and devices. On May 20, the company raised Rs 61.09 crore by issuing 17.81 lakh shares to anchor investors, including Abakkus, Carnelian AIF, India Max Investment Fund, Tiger Strategies Fund, Finavenue Capital Trust, 360 ONE, and Tattvam AIF Trust.

The company plans to utilise Rs 93.5 crore of the IPO proceeds for working capital requirements, Rs 90 crore for repayment of borrowings, and the remaining funds for general corporate purposes.

Meanwhile, Bio Medica Laboratories, a pharmaceutical parenteral formulations manufacturer, received a subscription of 2.19 times, with investors bidding 82.75 lakh shares against the offer size of 37.72 lakh shares via 3,076 applications. Qualified institutional buyers picked 15.94 times their allotted quota, while the portions reserved for non-institutional and retail investors were subscribed 1.41 times and 2.91 times, respectively.

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The company plans to raise Rs 52.43 crore via the IPO at the upper end of the price band of Rs 132-139 per share. The proceeds will be utilised mainly for repayment of loan, enhancement of its existing production capabilities by setting up a new manufacturing facility, and general corporate purposes.

Autofurnish, an automotive accessories maker, received a subscription of 1.19 times, with investors bidding 42.60 lakh shares against the offer size of 35.61 lakh shares via 356 applications. The company tapped capital markets to mobilise Rs 14.6 crore via the IPO at a fixed price of Rs 41 per share. The funds will be utilised for purchase of new machineries, working capital requirement, general corporate purposes, and issue expenses.

All three companies will finalise their IPO share allotment by May 26, while trading in Q-Line Biotech and Bio Medica Laboratories shares will commence on the NSE Emerge on May 29. Autofurnish will also start trading on the BSE SME platform on the same day.

The grey market premium for Q-Line Biotech IPO shares stood at 29 percent, while there was no trading premium for Bio Medica Laboratories and Autofurnish IPO shares, according to market observers. The IPOs are managed by Hem Securities and Share India Capital Services for Q-Line Biotech, Novus Capital Advisors for Autofurnish, and Narnolia Financial Services for Bio Medica Laboratories.