The Hindu Business Line : Vivimed Labs lists at 200% premium to IPO price

THE stock of Vivimed Labs, a specialty chemicals and pharma company, today made its debut on the stock market at more than 200 per cent premium to the issue price of Rs 70.

More than the issue price, the traded volumes in the counter surprised most market players. A total of 3.57 crore shares were traded on the BSE and the NSE. These volumes were almost 5 times of total 72.50 lakh shares of Rs 10 each. The IPO was for 25 lakh shares.

The stock listed at Rs 131 on the NSE and after touching a low of Rs 99 and a high of Rs 224.95 closed at Rs 218.65, a rise of 212.36 per cent to the issue price. On the BSE, it closed at Rs 218.35. A total of 2.31 crore shares were traded on the NSE and 1.26 crore shares on BSE. Of this, 5.43 per cent of the traded shares was up for delivery on the NSE and 4.10 per cent on the BSE.

Most of the brokers were surprised at the huge listing price. This was due to very high valuation of the company based on its past financial performance. For the financial year ended March 2005, it reported a net profit of Rs 4.84 crore on sales of Rs 52.09 crore. On increased equity (post IPO) of Rs 7.25 crore, its EPS is Rs 6.67, which translated into price-earning ratio of 32.7.

The company is into synthesis of specialty chemicals for end-use in personal care industry. The company today has 15 products in this segment and has moved these products into 19 countries across the globe. It also has generic drugs business and APIs.

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