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Vijaya Diagnostics IPO issue 4.5 times subscribed, Ami Organics sees 64 times demand

Mumbai: The initial public offerings (IPOs) of Vijaya Diagnostics Center and Ami Organics closed on Friday with subscriptions of 4.5 and 64.6, respectively.

Analysts said the revival of mid and small caps in the secondary market after a poor performance in August helped those IPOs, although market participants were more favored by specialty chemicals company Ami Organics.

“The silent listing of recent IPOs, despite good subscription, and Krsnaa in particular, which are still below market price, weighed on Vijaya Diagnostics’ IPO,” said Geetanjali Kedia, senior research analyst at investment advisory firm SPTulsian.com.

“Ami Organics’ initial public offering prices are attractive given the acquisitions of its Ankleshwar and Jhagadia facilities, which are likely to double their sales this year, which is exciting the market,” she said.

Vijaya Diagnostics Center, a leading diagnostic chain in South India, received bids of 113.6 million on an IPO of 25 million shares. The company had valued the IPO at 522 yen to 531 yen per share.

On August 31, the day before going public, the company had raised 566 billion yen from anchor investors at 531 yen per share. The proportion of qualified institutional buyers (QIB) was drawn 13.7 times, the retail ratio 1.1 and the category high net worth individual (HNI) 1.3 times.

Surat-based Ami Organics’ IPO at a price of 603-610 yen per share attracted more attention and received offers for 422 million shares versus 6.54 million shares on offer. The QIB and HNI shares were subscribed 86 times and 155.4 times, respectively, while the retail share was subscribed 13.4 times.

Ami Organics’ initial public offering includes the issuance of new shares valued at 200 billion and an offer to sell from promoters and existing shareholders of up to 6.059 million shares.

The proceeds from the issue will be used to pay down certain debts and as working capital, as well as for general corporate purposes. The company raised 171 billion yen from anchor investors prior to going public by allocating 2.8 million shares at 610 yen each.

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