The company is looking to raise Rp3bn from the sale of primary stock, while 24.1m secondary shares are being offered at a range of Rp426-Rp428 apiece. Left lead Kotak Mahindra Capital and joint bookrunning lead managers Citi, Jefferies and SBI Capital Markets started taking orders for the deal on Tuesday and will continue through Thursday. The book was 0.1x covered as of midday in India.
At the estimated size, Laurus Labs' IPO will be the largest listing in India since November 2, when PNB Housing Finance floated for Rp30bn, according to Dealogic. It will also be the fourth biggest listing this year behind ICICI Prudential Life Insurance Co, which sealed a Rp60.6bn IPO in September, Equitas Holdings’ Rp22.5bn float in April and PNB Housing’s listing.
A group of 25 anchor investors have already signed up for 9.2m shares, or Rp3.9bn-Rp4.0bn worth of Laurus Labs' secondary stock. Of the group, which was finalised on Monday, Nomura Trust and Banking Co have made the largest commitment, taking 5.46% of the anchor portion.
Meanwhile, Birla Sunlife Trustee Co, ICICI Prudential Mutual Fund, SBI Mutual Fund, Sundaram Mutual Fund and Tata Mutual Fund are each taking 5.11% of the anchor book and UTI Asset Management Co 5.06%. Cobra India has subscribed for 4.93%, with DSP BlackRock Emerging Stars Fund, Government Pension Global Fund, Morgan Stanley Investment Holding Co and Wells Fargo Emerging Markets Equity Fund also each in for the same amount.
Also in the anchor book are DB International and Morgan Stanley Mauritius Co, which have subscribed for 4.58% and 3.92% of the portion, respectively, while Goldman Sachs India is taking 3.79% and Kotak Mutual Fund 3.01%.
Eight firms have agreed to buy 2.78% of the anchor book, including Arohi Emerging India Master Fund, Canara HSBC Oriental Bank of Commerce Life Insurance Co, East Bridge Capital Master Fund, Eastspring Investments India Equity Open, HDFC Standard Life Insurance Co, Pictet Country, Tata AIA Life Insurance Co and the Indiaman Fund. Chennai 2007, meanwhile, is in for 1.72%.
The secondary stock is being provided by investors Aptuit, Bluewater Investment, FIL Capital Management and Fidelity India Principals. The latter is selling down its position through its trustee FIL Capital Advisors.
Laurus Labs, based in Hyderabad, is a supplier of anti-retroviral active pharmaceutical ingredients. The firm filed its draft red herring prospectus with the Securities and Exchange Board of India in August and received regulatory approval in October.
Its IPO follows that of mattress maker Sheela Foam, which sealed a Rp5.1bn deal on December 1 in an all secondary offering.