Comments
The initial public offering of Lovable Lingerie, which closed on Thursday, was subscribed 10.64 times. The issue received bids for 4.1 crore shares against the 38.67 lakh shares on offer.
The price band for the issue was fixed at Rs 195-Rs 205 a share.
The portion reserved for the qualified institutional bidders was subscribed 21.87 times. The company had also allotted 6.82 lakh shares to five anchor investors at Rs 205 a share. The anchor investors were HDFC MF, Birla Sunlife MF, SBI Magnum MF, HSBC and also DSP Blackrock.
The company had also placed 10 lakh shares at Rs 200 a piece with SCI Growth Investments, which constitutes close to six per cent of Loveable's fully diluted equity stake after its IPO. The company raised Rs 20 crore through the pre-IPO placement
The portion reserved for the retail investors was subscribed 2.67 times and high net worth individuals by 3.02 times.
Deployment of fund
The proceeds from the issue will be used for setting up of a manufacturing facility to create additional capacity at Bangalore; brand building; brand development; investment in a joint venture; setting up of Exclusive Brand Outlets; setting up of retail store modules for ‘shop-in-shop' and also to upgrade it design studios and for general corporate purposes.
Rating agency, CARE, has graded the issue 3/5 indicating above average fundamentals.
Anand Rathi Advisors are the sole book running lead managers to the issue.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.