Anu Laboratories IPO Review: Anu’s Laboratories

It’s official and confirmed news now. Anu Laboratories, which was planning to come out with an IPO and there were many rumours about it, has finally confirmed the news of its upcoming IPO.

When will the Anu Laboratories IPO open for subscritption?
Anu Laboratories IPO will open on 12th May 2008. The issue will close for subscription on May 15th, 2008.

How many shares will be offered for sale through the Anu Laboratories IPO?
A total of 38,20,000 equity shares having a standard face value of Rs. 10 will be sold using the Anu Laboratories IPO through a 100% book building process.

What is the price band of Anu Laboratories IPO shares?
The price range for Anu Laboratories IPO shares is Rs. 200 to 210 per share.

How are the shares offered segmented in Anu’s Laboratories IPO?
As per the news on ET,There is a reservation of up to 2,00,000 equity shares for employees and a net issue to the public of 36,20,000 equity shares. The issue will constitute 31.63 per cent of the fully diluted post issue paid-up capital of the company.

Qualified institutional buyers shall be allocated 18,10,000 shares or 50 per cent of the issue. From and out of the QIB portion 5 per cent for mutual funds, 15 per cent or 5,43,000 shares to non-institutional bidders and 12,67,000 shares or 35 per cent to retail investors.

What are the business valuations of Anu Laboratories IPO?
The company is presently engaged in the manufacture of basic, advanced intermediates and fine chemicals and supplying them to various drug manufacturers.

The main products of the company include 2,4-Di-Chloro-5-Fluoro Acetophenone (DCFA) (an intermediate for synthesizing quinolone antibiotics like ciprofloxacin), Chlorohexanone, Methyl-4 (4-Chloro 1 Oxo Butyl) a, a Di-Methyl Acetate and Poly Aluminium Chloride, which are manufactured in Mahboobnagar, Andhra Pradesh.

How will the IPO proceeds or fund raised through Anu Laboratories IPO be used?
The company plans to utilize the proceeds for - setting up a new plant for manufacturing of drug intermediates including Active Pharmaceutical Ingredients at Vishakhapatnam, setting up of pilot plant for carrying out Contract Research and Manufacturing at Vishakhapatnam, long term working capital requirement, general corporate purposes and for issue expenses.

Any ratings being assigned to the Anu’s Laboratories IPO?
The valuations are not that good from the ratings point of view. ICRA Rating of 2/5 has been assigned to Anu Laboratories IPO.

The Anu Laboratories IPO shares will be listed on BSE Bombay Stock Exchange. The book running lead manager to the issue is Almondz Global Securities.

Table of Contents