Laurus Labs shares made a strong debut on Monday with its shares surging over 16 per cent to Rs 498, compared with its issue price of Rs 428.
The initial public offer or IPO of generics drug maker Laurus Labs - which ended on December 8 - to raise up to Rs 1,332 crore was fully subscribed.
The company had earlier raised Rs 395 crore from anchor investors.
Based in Visakhapatnam, Laurus Labs makes active pharmaceutical ingredients (API), or drug raw materials, that go into the making a range of medicines, chiefly HIV/AIDS drugs. It has three production plants in India for exports to the United States and other countries.
The company also manufacturers APIs for oncology and other therapeutic areas. Its client base includes companies like Cipla, Natco and Mylan.
APIs contribute 92 per cent of its revenue while the remaining 8 per cent comes from synthesis and ingredient business. Currently, 80 per cent of its revenue comes from exports.
Laurus Labs had reported a net profit of Rs 77 crore on revenues of Rs 930 crore in the first half of the current fiscal. The company's profitability has been rising over the last three years, with operating margin (EBITDA margin) rising to 21.2 per cent in FY2016 from 18 per cent in FY2014.
At 10:17 a.m., shares in Laurus Labs were trading 11.39 per cent higher at Rs 476.75 apiece on the BSE, whose benchmark Sensex index was down 0.28 per cent.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
