Speciality Medicines IPO Listing

Company Overview

Speciality Medicines, a pharma company engaged in the business of marketing and distribution of finished formulations of specialty pharmaceutical products, listed on the BSE SME platform on March 30 at par with the initial public offering (IPO) price of ₹124.

IPO Details

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The ₹29 crore IPO, open for bidding from March 20 to March 24, was booked 2.27 times as it garnered bids for 49,87,000 shares as against 22,00,000 shares on offer. The qualified institutional buyer (QIB) segment was booked a whopping 96.24 times, while the non-institutional investor (NII) quota received 1.88 times bids. The individual investor portion remained undersubscribed at 0.85 times, signalling tepid interest from the retailers.

Listing Performance

Soon after listing, Speciality Medicines' share price rose to ₹129.50, recording a 4.4% rise against the offer and listing price. As of 10.40 am, the company's stock price was trading 2.42% higher at ₹127 apiece.

Funds Utilization

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The company plans to use the funds raised for setting up an R&D centre, product development for sale in the international market, funding marketing and promotional activities, funding working capital needs and for general corporate purposes.

Issue Details

The IPO was a book-built issue consisting entirely of a fresh issue of 0.24 crore shares. Investors could apply for the SME IPO in the price band of ₹11 to ₹124 apiece in lots of 1000 shares. For a retail investor, the minimum investment requirement was ₹2,48,000 as they needed to apply for at least two lots.

Issue Team

Unistone Capital acted as the book-running lead manager, and Skyline Financial Services was the registrar of the issue.