Laurus Labs IPO
Laurus Labs is a leading research and development driven pharmaceutical company in India, with a leadership position in generic active pharmaceutical ingredients (APIs) for select, high-growth therapeutic areas of antiretrovirals (ARVs) and Hepatitis C. The company is one of the leading suppliers of APIs in the ARV therapeutic area to multi-national pharmaceutical formulation companies which cater to the large and fast-growing “donor-funded access-tomedicines markets” of Sub-Saharan Africa, South-East Asia and Latin America. During the financial year 2016, Laurus sold its APIs in 32 countries. The company also manufactures APIs in oncology and other therapeutic areas.
The company operates in four business lines: Generics – APIs, Generics – FDFs, Synthesis and Ingredients. The Generics – API business comprises the development, manufacture and sale of APIs and advanced intermediates. The Generics – FDF business comprises the development and manufacture of oral solid formulations while the Synthesis business includes contract development and manufacturing services for global pharmaceutical companies. The Ingredients business comprises the manufacture and sale of specialty ingredients for use in the nutraceutical and cosmeceutical sectors. Laurus Labs has launched 59 products since its inception in 2005. Its key customers include Aspen Pharmacare Limited, Aurobindo Pharma Limited, Cipla Limited, Mylan Laboratories Limited, NATCO Pharma Limited and Strides Shasun Limited. The company claims that nine out of the 10 largest generic pharmaceutical companies in the world, by revenue, were its customers during the financial year 2016.
As of 30 June 2016, Laurus Labs employed 587 and 12 scientists at its R&D centers in Hyderabad and Greater Boston, constituting 25% of its total employee strength. The company spent INR906.52 million towards R&D activities during the financial year 2016, or 5.1%, of its total revenues. As of 30 June 2016, the company owned 32 patents and had 150 pending patent applications, in several countries.
Laurus Labs currently operates three manufacturing facilities in Visakhapatnam, Andhra Pradesh. Two of its facilities manufacture APIs and ingredients, while the third facility is for the manufacturing of APIs and FDFs. It also has a kilo lab near Hyderabad, Telangana. The company is also in the process of setting up two additional manufacturing facilities, one for potent APIs (expected to commence operations by 31 December 2016) and the other for APIs, intermediates and ingredients (expected to commence construction during the financial year 2017).
Promoter of Laurus Labs: Dr. Satyanarayana Chava, Naga Rani Chava, Dr. Raju Srihari Kalidindi, Ravi Kumar Vivi, and Dr. Lakshmana Rao CV
|Laurus Labs IPO details|
|Subscription Dates||6 - 8 December 2016|
|Price Band||INR426 - 428 per share|
|Fresh issue||Up to INR3 billion (INR300 crore)|
|Offer For Sale||24,107,440 shares or INR10.31 billion (INR1031.79 crore at upper price band)|
|Total IPO size||INR13.31 billion (INR1331.79 crore at upper price band)|
|Minimum bid (lot size)||35 shares|
|Face Value||INR10 per share|
|Listing On||BSE, NSE|
Laurus Labs' consolidated financial performance (in INR crore)
|Profit after tax||97.2||68.3||132.6|
Laurus Labs IPO Subscription Details
|Category||Shares offered||Subscription (no. of times, at 6 PM )|
|Day 1||Day 2||Day 3|
IPO Opening Date: 6 December 2016
IPO Closing Date: 8 December 2016
Finalisation of Basis of Allotment: 14 December 2016
Initiation of refunds: 15 December 2016
Transfer of shares to demat accounts: 16 December 2016
Listing Date: 19 December 2016
Listing Price on NSE: INR489.9 per share (Profit of 14.5% on IPO price)
Closing Price on NSE: INR480 per share (Profit of 12.2% on IPO price)