Ahmedabad-based drug manufacturer Claris Lifesciences on Monday made a lacklustre stock market debut, with its shares falling 10% from its issue price. The scrip closed at Rs 205.85, down Rs 22.15, or 9.7% from its issue price of Rs 228 a share. According to analysts, the shares took a beating because of the US Food and Drug Administration ban on one of Claris? manufacturing facilities as it failed to meet the desired quality standards.
The stock, which opened at Rs 224.4, traded between Rs 227.90 and Rs 198.1. The counter clocked a volume of 15.45 million shares and a turnover of Rs 333 crore. The shares of the company listed only on the BSE. The 12.63 million-offering of Claris Lifesciences had got a tepid response from investors, due to which the company had extended the closing date and lowered the price band to Rs 228-Rs 235 from the earlier band of Rs 278-Rs 293 per share.
The IPO, through which Claris raised Rs 246 crore, was subscribed just 1.5 times. QIB portion was subscribed 1.31 times; the non-institutional investors segment was subscribed 2 times, while the retail segment had seen subscription to the extent of 1.6 times. Tree Line Asia Master Fund, Ashoka Flowering Tree Mauritius, Indea Capital and Long Term Opportunities Master Fund were the four anchor investors, which cumulatively invested Rs 54 crore.
Enam Securities, Edelweiss Capital, JM Financial Consultants and ICICI Securities were the book running lead managers (BRLMs) to the issue.
Interestingly, the stock prices of seven out of eight private companies that have entered the markets in the recent months are trading below their issue prices. The share price of last three private IPOs – RPP Infra, BS Transcomm and Gyscoal Alloys – are down 22%, 45% and 54% respectively from their issue price.