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Eris Lifesciences IPO completely subscribed on day 3

LiveMint logoLiveMint 20-06-2017 Swaraj Singh Dhanjal

Mumbai: The initial public offering (IPO) of pharmaceutical firm Eris Lifesciences Ltd was completely subscribed on Tuesday afternoon, the final day of the offering. The IPO opened on 16 June.

According to data from stock exchanges, at 12.10pm, the portion of shares reserved for institutional investors was subscribed 1.29 times, while the portions reserved for high net-worth individuals and retail investors were subscribed 6% and 2.34 times, respectively.

Overall, the offering was subscribed 1.14 times.

The company has set a price band of Rs600-603 per share for the IPO. The offering, which closes on 20 June, will raise Rs1,741.1 crore at the upper end of the price band.

Last week, Eris raised Rs779.43 crore by selling shares to investors as part of the so-called anchor book allocation, a day ahead of the opening of its IPO.

The IPO is a pure offer for sale by existing investors of the company, and will not be raising any primary capital for investing in its business activities. Private equity firm ChrysCapital and other individual shareholders in the firm are offering to sell 28.87 million shares through the IPO.

ChrysCapital, which holds a 16.25% stake in the company, will sell all of its 22.34 million shares, while founder Amit Bakshi, who holds 39.97%, will sell a 0.5% stake. Other investors, including Rakesh Shah, Rajendra Patel, Kausal Shah and Inderjeet Negi, will also sell shares.

For ChrysCapital, an active investor in the Indian pharmaceutical and healthcare space, Eris Life’s IPO will provide another exit with a good return.

ChrysCapital, which invested about Rs200 crore in Eris in 2011, will make about Rs1,347 crore through its exit, reaping close to seven times return.

Eris develops, manufactures and commercializes branded pharmaceutical products in select therapeutic areas within the chronic and acute categories like cardiovascular, anti-diabetics, vitamins, gastroenterology and anti-infectives.

On Friday, telecom equipment maker Tejas Networks Ltd saw its initial share sale subscribed 1.88 times. GTPL Hathway Ltd and AU Small Finance Bank Ltd are also launching their IPOs this month.

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