New Delhi . McLeod Pharmaceuticals has filed preliminary documents with capital markets regulator Securities and Exchange Board of India (SEBI) to raise Rs 5,000 crore through IPO. According to the draft Red Herring Prospectus (DRHP), the company’s IPO includes an offer for sale of 6.05 crore equity shares by the promoters. According to the draft, a share will also be reserved for the employees of the company in the IPO.
IPO size Rs 5,000 crore
Merchant banking sources said the size of the McLeods Pharmaceuticals IPO is expected to be Rs 5,000 crore. McLeod Pharmaceuticals is engaged in the development, manufacturing and marketing of a wide range of formulations in many health-related areas. These include anti-infective, cardiovascular and vascular, diabetes, skin diseases and hormone treatment.
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IPO between Rs 53,500 crore and Rs 93,625 crore
If we multiply the embedded value of LIC by 2-3.5 times, then it ranges from Rs 10.7 lakh crore to Rs 18.7 lakh crore. Based on the total equity capital of 632 crore shares, if we look at the 5% issue, then the IPO of LIC can be between Rs 53,500 crore and Rs 93,625 crore. Accordingly, the issue price of LIC can be between Rs 1963-2961. In comparison, the share acquisition cost for the government is Rs 0.16 per share. There was capital restructuring in LIC before bringing the issue.
When LIC was started, its initial capital was Rs 100 crore. LIC was the premium collecting company then, so its shares were never allotted to anyone else. Before bringing the issue, the government had invested an initial Rs 100 crore to convert LIC from corporation to corporate and Rs 10 face value shares were allotted to the government.
Tags: share market, stock market today, IPO
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