Dr. Lal PathLabs Ltd proposes to open on December 8, 2015, an initial public offering of up to 11,600,000 equity shares of face value of Rs.10 each (equity shares) for cash at a price band from Rs.540 to Rs.550 per equity share (the offer).
This is through an offer for sale of up to 1,261,996 equity shares by Brigadier Dr. Arvind Lal; up to 2,056,747 equity shares by Dr. Vandana Lal; up to 238,226 equity shares by Eskay House (HUF), up to 550,386 equity shares by Anjaneya Lal (collectively, the promoter selling shareholders) up to 5,860,000 equity shares by Wagner Limited; up to 1,471,575 equity shares by WestBridge Crossover Fund, LLC; up to 161,070 equity shares by Sanjeevini Investment Holdings (collectively, the investor Selling shareholders and with the promoter selling shareholders, the selling shareholders) (the offer for sale). The offer shall constitute up to 14.04 per cent of the post-offer paid-up equity share capital of the company. The company and the selling shareholders may, in consultation with the Book Running Lead Managers (BRLMs), offer a discount of up to Rs.15 on the offer price to retail individual bidders.
The minimum bid lot is for 20 equity shares and in multiples of 20 equity shares thereafter. The company and the selling shareholders may, in consultation with the BRLMs, consider participation by anchor investors. The anchor investor shall bid on the anchor investor bidding date i.e. one working day prior to the bid/offer opening date – December 7, 2015. The bid/ offer closing date will be December 10, 2015. The company, promoter selling shareholders and investor selling shareholders may, in consultation with the book running lead managers, decide to close bidding by QIBs one day prior to the bid/offer closing date.
The BRLMs to the offer are Kotak Mahindra Capital Company Limited and Citigroup Global Markets India Private Limited. The equity shares offered through the Red Herring Prospectus are proposed to be listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).
The offer is being made through the Book Building Process in accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the SEBI Regulations), wherein 50 per cent of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers (QIB portion). The company, the promoter selling shareholders and the investor selling shareholders may, in consultation with the BRLMs, allocate up to 60 per cent of the QIB portion to anchor investors at the anchor investor allocation price, on a discretionary basis, out of which at least one-third will be available for allocation to domestic mutual funds only, subject to valid bids being received from domestic mutual funds at or above the anchor investor allocation price. In the event of under-subscription or non-allocation in the anchor investor portion, the balance equity shares shall be added to the net QIB portion. Such number of equity shares representing 5 per cent of the Net QIB portion (other than anchor investor portion) shall be available for allocation on a proportionate basis to mutual funds only. The remainder of the net QIB portion shall be available for allocation on a proportionate basis to QIBs (other than anchor investors), including mutual funds, subject to valid bids being received from them at or above the offer price. Further, not less than 15 per cent of the offer shall be available for allocation on a proportionate basis to non institutional bidders and not less than 35 per cent of the offer shall be available for allocation to retail individual bidders in accordance with the SEBI Regulations, subject to valid bids being received from them at or above the offer price such that, subject to availability of equity shares, each retail individual bidder shall be allotted not less than the minimum bid lot, and the remaining equity shares, if available, shall be allotted to all retail individual bidders on a proportionate basis.
All investors, other than anchor investors, can participate through the applications supported by blocked amount (ASBA) process by providing the details of their respective bank accounts in which the corresponding bid amount will be blocked by the SCSBs. However, QIBs (excluding anchor investors) and non-institutional bidders are mandatorily required to submit their bids by way of ASBA only. Anchor investors are not permitted to participate in the offer through the ASBA process.
The investor is required to fill the ASBA form and submit the same to their bank or syndicate members. The SCSB will block the amount in the account as per the authority contained in ASBA form. On allotment, amount will be unblocked and account will be debited only to the extent required to pay for allotment of shares. Hence, there will be no need of refunds.