The initial public offering (IPO) of Thyrocare received astounding response from investors as the issue was oversubscribed more than 73 times on the back of strong interest from institutional investors. More than 55 crore bids were received for the offering across the stock exchanges against 75.21 lakh shares on offer.
The institutional portion was subscribed a little more than 73 times as 15.72 crore bids were received against 21.49 lakh shares on offer. The retail book of the share sale was subscribed 8 times. Individual investors bid for 3 crore shares against 37.61 lakh shares reserved for the category.
On the other hand, non-institutional portion of the issue was subscribed 225 times as high net worth individuals (HNIs) bid for 36.3 crore shares against 16.12 lakh shares on offer.
Last week, the company had raised Rs 143.76 crore by allotting a little more than 32.2 lakh shares to anchor investors. Fifteen investors including Nomura, Merrill Lunch Capital Markets Espana, DSP Blackrock and HDFC MF were allotted shares of Thyrocare at Rs 446 apiece.
Thyrocare fixed a price band of Rs 420-446 apiece for the IPO. At the upper price band, the company will raise Rs 480 crore. The complete issue is an offer for sale (OFS) wherein existing investors including CX Partners are making a partial exit.
The book running lead managers for the issue are ICICI Securities, Edelweiss Financial Services and JM Financial.
Thyrocare reported consolidated total revenue of Rs 180 crore in the first nine months of FY16, while its profit after tax was Rs 40 crore. In FY15, the company had reported a profit after tax of Rs 43 .25 crore. Given this profit number, the company is commanding earnings multiple of 51 and 54 times for the upper and lower price range.
Recently, Dr Lal PathLabs, which got listed in December 2015, was also priced at an earnings multiple of 47 to 48 times based on its FY15 earnings. The issue was oversubscribed 33 times and zoomed as much as 50% on its listing day.
Thyrocare Technologies competes with diagnostic chains such as Dr Lal PathLabs, SRL Diagnostics, Metropolis Healthcare and Apollo Clinic.