Speciality Medicines IPO Witnesses Strong Demand in Final Day, QIB Portion Subscribed 96 Times by Two Investors

Speciality Medicines IPO Update

Subscription Figures:

The initial public offering (IPO) of Speciality Medicines, a specialty pharmaceutical products distributor, received strong investor interest. The IPO was subscribed 2.19 times overall, with the Qualified Institutional Buyers (QIBs) segment attracting 96.24 times subscription on the final day of bidding, March 24. This was despite the overall subscription rate being lower than the QIB segment.

IPO Details:

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The company had approached the capital markets on March 20 to raise Rs 29.14 crore through a public issue of 23.5 lakh shares, valued at Rs 109 crore at the upper end of the price band of Rs 117-124 per share. Investors placed bids for 51.37 lakh shares through 685 applications over the three-day period from March 20 to March 24.

Segment-wise Subscription:

The portion set aside for Non-Institutional Investors was subscribed 1.77 times, while the Retail Investors' segment was subscribed 85%. The QIBs segment showed strong interest, bidding for 20.21 lakh shares against a reserved portion of 21,000 shares, via only two applications.

IPO Proceeds Allocation:

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The company plans to utilise the IPO proceeds as follows: Rs 12.67 crore for setting up a research and development (R&D) centre in Valsad, Gujarat, Rs 3 crore for product registration and development for international markets, Rs 1.65 crore for marketing and promotional activities, Rs 8 crore for working capital requirements, and the remaining funds for general corporate purposes.

Listing:

The IPO share allotment is expected to be finalised by March 25, with the shares expected to be listed on the BSE SME platform on March 30. Unistone Capital is acting as the merchant banker for the Speciality Medicines IPO.