Saturday, June 21, 2008

Lotus Eye Care Hospitals IPO subscribed 1.18 times

MUMBAI - Lotus Eye Care Hospitals, which had revised its price band received positive response from investors, with the issue getting subscribed 1.18 times on the final day of its offer today and with 1most of the bids pouring in from non-institutional investors.

The issue received bids for over 1.18 crore shares against one crore shares on offer, according to data available on the National Stock Exchange.

The price band of the issue had been revised downward to Rs 36-Rs 38, from earlier band of Rs 38-42.

The non-institutional investors' portion got subscribed 2.63 times the shares on offer, while the Qualified Institutional Buyers got subscribed 0.63 times. Retail investors' portion was also fully subscribed at the end of the day's trading.

The company plans to utilise the issue proceeds for opening new health care centres. It would partly finance its Rs 55-crore expansion through the proceeds of the IPO. The company would raise Rs 999 lakh from banks in the form of term loans and Rs 3 crore from internal accruals.

Further, the company would set up two primary eye care units in Bangalore and another in Chennai, which would focus on simple eye problems and optical sales.

It also plans to open secondary eye care centre in R S Puram, Tirupur, Karur and a tertiary eye care centre at Salem. For its R S Puram project, the company has already bought land and the construction process is on.

Courtesy: economictimes.indiatimes.com

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