Alpa Laboratories settled at Rs 55.60 on BSE, a discount of 18.23% over IPO price of Rs 68.

On BSE, 90.64 lakh shares were traded on the counter today. Shares of Alpa Laboratories hit a high of Rs 65 and a low of Rs 54.05. It opened at Rs 60.

The company’s current equity is Rs 21.04 crore, with 2.104-crore outstanding shares of a face value of Rs 10.

The price band for the issue was fixed at Rs 62 - Rs 68 a share. The current price of Rs 55.60 discounts its FY 2007 EPS of Rs 3 by a PE multiple of 18.53.

Alpa Laboratories IPO ended on 17 July 2007, with 1.11 times subscription. The issue received total bids for 1.05 crore shares as against total issue size of 95 lakh shares.

Indore-based Alpa Laboratories manufactures pharmaceutical formulations with a range of products such as ethical drugs, generic drugs, over-the-counter drugs (OTC) and veterinary products in various dosage forms and markets them under the trademark, Alpa. It also undertakes contract manufacturing of formulations for a number of other pharmaceutical companies

The company intends to deploy the issue proceeds to part-finance the setting up of a new plant in Madhya Pradesh. The plant is being set up at a cost of Rs 70.88 crore.

The company also plans to widen product range by foraying into probiotics, prebiotics and pre-filled syringes. It will also expand contract manufacturing activities to include large multinational companies. The expansion project will be financed through a term loan of Rs 20 crore, promoters’ contribution of Rs 3 crore and balance from the IPO.