Indian Health-Care IPOs Seeking $298 Million Draw Strong Demand

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Indian health-care firms Alkem Laboratories Ltd. and Dr. Lal Pathlabs Ltd., whose initial public offerings are seeking a combined 19.9 billion rupees ($298 million), drew orders for several times the amount of stock on offer as the country completes its biggest year for new offerings since 2010.

Drugmaker Alkem Laboratories, whose owners are offering as much as 13.5 billion rupees of shares, attracted overall demand of 44.23 times at 7 p.m. in Mumbai on the third and final day of the sale, according to the National Stock Exchange. Institutional investors subscribed to about 38 times the shares reserved for them, while retail investors bid for 0.99 times the stock they were allocated as of 7:32 p.m on NSE.

Dr. Lal Pathlabs, whose shareholders are seeking 6.38 billion rupees, saw overall demand of 33.3 times at 7 p.m. local time, National Stock Exchange data show. The diagnostic testing provider saw institutional investors subscribe to about 57 times the shares reserved for them, as of 7:32 p.m on NSE, while retail investors bid for 1.51 times their allocation.

Indian demand for health-care services is increasing as incomes rise and conditions like diabetes become more widespread. The offerings will add to the 112.6 billion rupees raised in first-time share sales in India this year, more than seven times the total amount for 2014 and the highest volume in five years, data compiled by Bloomberg show. 

Hospital chain Narayana Hrudayalaya Ltd. will start taking orders next week for its IPO, which is seeking as much as 6.13 billion rupees. Narayana, founded by cardiac surgeon Devi Shetty, operates 23 hospitals, eight heart centers and 24 primary-care facilities in India, its preliminary prospectus shows.

InterGlobe Aviation Ltd., owner of India’s largest carrier, has risen 30 percent since its started trading last month. The company and existing owners raised 30.1 billion rupees in its initial public offering, the biggest in the country since Bharti Infratel Ltd.’s share sale in 2012.

Nomura Holdings Inc., Axis Bank Ltd., JPMorgan Chase & Co. and Edelweiss Financial Services Ltd. are managing the Alkem Laboratories share sale. Kotak Mahindra Bank Ltd. and Citigroup Inc. are arranging Dr. Lal Pathlabs’s IPO.

(Updates with subscription numbers from second paragraph.)
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