Lovable Lingerie IPO subscribed 11 times

Our Bureau Mumbai | Updated on March 10, 2011

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.

Published on March 10, 2011

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