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Eris Lifesciences raises Rs779.4 crore from anchor investors

LiveMint logoLiveMint 15-06-2017 Swaraj Singh Dhanjal

Mumbai: Ahmedabad-based Eris Lifesciences Ltd said on Thursday it has 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 initial public offering (IPO).

The anchor book is that portion of an IPO that bankers can allot to institutional investors on a discretionary basis. Anchor book subscription opens a day before the launch of an IPO and acts as an indicator of institutional investor interest.

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

The anchor book allocation saw institutional investors buy 12.9 million shares at the upper end of the price band.

Institutional investors who participated in the anchor book allocation included Abu Dhabi Investment Authority, Goldman Sachs India Ltd, Morgan Stanley India Investment Fund Inc., SBI Magnum Balanced Fund, SBI Magnum Midcap Fund, Birla Sun Life Balanced, FIL Investments (Mauritius) Ltd, Merrill Lynch Markets Singapore Pte Ltd and IDFC Premier Equity Fund.

The IPO is a pure offer for sale by existing investors of the company, and will not be raising any primary capital. Existing shareholder ChrysCapital and other individual shareholders are offering to sell 28.87 million shares through the initial share sale.

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 too will sell shares.

Eris develops, manufactures and commercializes branded pharmaceutical products in select therapeutic areas within the chronic and acute categories.

For 2016-17, Eris reported revenue of Rs707.4 crore, up from Rs608.7 crore in the previous fiscal year. It reported a profit of Rs242.5 crore in 2016-17, a significant jump from Rs137.9 crore in the previous year.

So far this year, eight companies have raised Rs6,335.83 crore through IPOs, while last year 26 companies raised Rs26,493.84 crore through this route.

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