Simplex Projects IPO subscribed almost 7 times

The IPO of Simplex Projects was bid nearly 7 times at the end of the third day of the issue. The IPO received bids for 2.02 crore shares compared to issue size of 30 lakh shares. The issue closes on Friday, 13 July 2007.

FIIs put in bids for 1.43 crore shares compared to 15 lakh shares reserve to qualified institutional bidders category as a whole. Retail investors put in bids for 33.54 lakh shares compared to 10.5 lakh shares reserved to this category.

At the offer price band of Rs 170-Rs 185, the PE range on the basis of standalone FY 2007 EPS of Rs 8.70, works out to 19.5 to 21.3

Simplex Projects is a construction firm involved in construction of commercial and residential buildings, group housing projects and townships, industrial structures, hospitals, and universities and educational campuses. It also undertakes road, irrigation and water supply projects.




FIIs put bids for 20 lakh shares in Alpa Laboratories IPO

The IPO of Alpa Laboratories received a muted response on the first day of the issue opening today. The IPO was bid for just 0.22 times of the issue size.

FIIs put in bids for 20 lakh shares compared to a total of 46.25 lakh shares reserved to qualified institutional bidders category as a whole.

Alpa Laboratories has set a price band of Rs 62 to Rs 68 per equity share of Rs 10 each face value. At the higher band of Rs 68, the PE is 22.7 based on FY 2007 EPS of Rs 3 on post-issue equity of Rs 21.56 crore. At the lower band of Rs 62, the PE works out to 20.7.

Alpa Laboratories (promoted by Purshottam Patel, M S Chawla, and Pravin Shah) 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 such as Cipla, Zydus Cadila, Lupin, Glenmark, Genom Biotech, and Jenburkt. For its own products, the company has established a marketing network covering both metro and mini-metro cities through a number of distributors and dealers spread across the country.

Alpa Laboratories is currently operating its capacities at nearly 90%. To cater to rising demand, it has planned a massive expansion program to add 1.5 times its existing overall capacity at a capital cost of Rs 58.21 crore with the commissioning scheduled for April 2008. The new plant is planned to be US FDA-compliant considering export prospects.