 "Adlabs Entertainment gains 6% on debut")
Theme park operator Adlabs Entertainment ended with over 6 per cent gains on its stock market debut on Monday. Shares of the company closed at Rs 191.25 on the BSE compared to issue price of Rs 180 per share.
Listing gains were noteworthy considering Adlabs' initial public offering (IPO) was barely subscribed even after it had slashed the price band by as much as 20 per cent.
The Adlabs IPO, which closed on March 17, was just marginally oversubscribed that after the company reduced the price band for the offering to Rs 180-215 per share from Rs 221-230 earlier.
The gains were further sweetened for retail investors-those investing less than Rs 200,000-as they were offered an additional discount of Rs 12 per share. The cost of acquisition for retail investors applying in the IPO worked out to Rs 168 per share.
Shares of Adlabs on Monday traded in a range between Rs 156 and Rs 199 on the BSE.
Manmohan Shetty-promoted Adlabs operates theme parks— Imagica and AquaMagica— situated between Mumbai and Pune. The company is also in the process of setting up of 287-keys hotel, which will be managed by Novotel. The company registered 820,000 footfalls in 2013-14. It had revenue of Rs 104 crore and reported a net loss of Rs 53 crore for the year.
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Adlabs IPO was subscribed 1.1 times, with qualified institutional buyer category getting 1.17 times subscription, high networth individual (HNI) segment getting 0.5 times subscription and retail investor category getting subscribed 1.5 times.
The company had raised around Rs 60 crore from anchor investors at Rs 221 per share. Anchor investors included Daiwa India, HDFC Infrastructure Fund, Axis Mutual Fund, L&T Mutual Fund and IL&FS.