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Lotus Eye Care Hospital debuts below IPO price

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Lotus Eye Care Hospital was trading at Rs 36.75 at 12:49 IST on BSE, a discount of 3.28% over the initial public offer price of Rs 38 on its debut today.

The stock debuted at Rs 35. It hit a high of Rs 38.95 and a low of Rs 32.05 so far during the day.

The scrip clocked a volume of 1.3 crore shares.

The initial public offering of Lotus Eye Care Hospital was subscribed 1.18 times. The issue received bids for 1.18 crore shares compared to 1 crore shares on offer. The qualified institutional buyers’ portion was subscribed 0.68 times, non-institutional investor portion was subscribed 0.13 times, while the retail portion was subscribed 0.72 times.

The Lotus Eye Care Hospital IPO, which was originally scheduled to close on 17 June 2008, closed on 20 June 2008 with the company extending the issue closing date due poor response from investors. The IPO opened for subscription on 12 June 2008. Further the price band was also been revised downwards from the earlier Rs 38 to Rs 42 per share to Rs 36 to Rs 38 per share.

Lotus Eye Care Hospital entered the primary market with a public issue of 1 crore-equity shares of Rs 10 each through the 100% book building process.

Lotus Eye Care Hospital is a leading super-speciality eye care company with eye care hospitals and clinics at locations in South India. It presently has a network of two eye care hospitals at Coimbatore and one each in Salem and Tirupur. The network had nine operation theatres and three lasik laser equipment and total bed strength of all the centres was 120 beds, excluding eye camp beds.

The company plans to utilise the net proceeds of the issue to part finance its Rs 55-crore expansion plan.

The company reported 148.10% jump in net profit to Rs 1.29 crore on 177.80% surge in net sales to Rs 6.75 crore in the year ended March 2007 over the year ended March 2006.

Courtesy: capitalmarket.com

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