Deccan Healthcare breaks lull in SME IPO market
21/12/2018 15:18
Deccan Health Care Ltd ("Deccan/Company"), engaged in the business of developing, manufacturing and marketing a broad range of nutraceutical, cosmeceutical, ayurveda and healthcare products, closed the bid subscription of its initial public offering ("IPO") for 42,12,000 equity shares at a price band of INR 95-100 per share amounting to gross proceeds of INR 42.12 Crores, despite volatile markets and lukewarm responses to IPOs recently. The issue has been subscribed to 1.60 times.

Since April 2018, 20 SME IPOs have raised funds over INR 25 Crs, Deccan being the 20th one. With IPO market drying up and no IPOs on main board since November, this is a first IPO in last 2 months that has garnered over INR 40 Crores amidst subdued markets, wherein notable participation was seen from both HNIs and retail investors. Above table shows the SME IPO market activity in past months.

Commenting on the successful completion to the IPO, Mr. Minto Gupta, Managing Director, said, "We are thankful to our investors for showing faith in our company and our capability to tap nutraceutical opportunity in India. With good wishes and support of our stakeholders we aim to achieve many more milestones."

The Company plans to utilize its issue proceeds towards repayment of certain secured borrowings, purchase of Plant & Machinery and for other general corporate purposes.

The equity shares of Deccan are proposed to be listed on BSE SME platform. Pantomath Capital Advisors Pvt Ltd is the lead manager to the issue.