Lovable Lingerie IPO subscribed 4% on Day 1

PTI Mumbai | Updated on March 08, 2011

Women inner wear manufacturer Lovable Lingerie’s initial public offer (IPO) was subscribed 4 per cent till 1600 hours on the first day of issue on Tuesday.

The company’s IPO received bids worth 1.72 lakh shares against 38.67 lakh shares on offer till 1600 hours on the first day, as per the data available on the National Stock Exchange.

Lovable Lingerie has entered the capital market with its IPO priced in the range of Rs 195 to Rs 205 a piece. The bid, which opened for subscription on Women’s Day today, will close on March 10 for qualified institutional buyers and on March 11 for non-institutional buyers. The market experts described the response as “good” for the first day of the issue.

“The IPO’s pricing is attractive and should generate smart response by the end of the issue on March 11. Besides, considering the growth opportunity in the niche segment of branded lingerie, the issue is likely to give smart returns to the investors,” Unicon Securities Vice-President (Research) Ms Madhumita Ghosh said.

However, the analysts cautioned that uncertainties in the broader market may dampen investors’ sentiment towards the Lovable Lingerie’s IPO. The company plans to set up a manufacturing facility to create additional capacity at Bangalore.

Lovable Lingerie will use the issue proceeds for brand building of their ‘college style’ brand and investment in joint ventures, setting up exclusive brand outlets, along with retail store modules for shop-in-shop and upgradation of design studios, other than general corporate purposes.

The issue has been graded by Credit Analysis and Research Limited (CARE), and has been assigned CARE IPO Grade-3, indicating average fundamentals.

Published on March 08, 2011

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