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Adlabs Entertainment ends with 6.25% premium

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Capital Market
Last Updated : Apr 09 2015 | 5:28 PM IST

At 191.25 on BSE

Shares of Adlabs Entertainment settled at Rs 191.25 on BSE, a premium of 6.25% over the initial public offer price of Rs 180.

Meanwhile, the S&P BSE Sensex rose 244.32 points or 0.86% at 28,504.46.

The stock debuted at Rs 167.95 on BSE, a discount of 6.69% over its initial public offer (IPO) price. The stock hit a high of Rs 199 and a low of Rs 156.40 during the day. On BSE, 29.03 lakh shares were traded on the counter during the day.

Theme park operator Adlabs Entertainment had priced the IPO at Rs 180 per share. Retail investors were allotted shares at Rs 168 each, a discount of Rs 12 per share compared with the issue price. The IPO had opened for subscription on 10 March 2015 and closed on 17 March 2015.

Adlabs Entertainment on 12 March 2015, extended the closing date for its IPO until 17 March 2015 from its earlier closing date of 12 March 2015. Due to poor response, the price band for the IPO was revised downwards to Rs 180-215 per share from Rs 221-230 per share set earlier.

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The IPO of Adlabs Entertainment was subscribed 1.11 times. The IPO received bids for a total 1.95 crore shares compared with 2.03 crore share on offer. Excluding 27.22 lakh equity shares to be allotted to anchor investors, 1.76 crore shares were on offer.

Qualified institutional buyers (QIBs) category was subscribed 1.17 times, non institutional investors' category was subscribed 0.49 times and retail individual investors (RIIs) category was subscribed 1.37 times.

On 9 March 2015, Adlabs Entertainment raised Rs 60.15 crore from a total of five anchor investors viz. Daiwa India Stock Active Mother Fund, HDFC Infrastructure Fund, Axis Mutual Fund, L&T Mutual Fund and Forefront Alternative Investment Trust. These five anchor investors subscribed to the Adlabs Entertainment shares at Rs 221 per share.

The IPO of Adlabs Entertainment comprised fresh issue of 1.83 crore equity shares and an offer for sale of 0.2 crore shares by Thrill Park, part of the promoter group. The object of the issue is to repay or pre pay loan up to Rs 330 crore from a consortium of bankers. The rest is for general corporate purpose in addition to achieving the benefits of listing the equity shares on stock exchanges such as enhancing visibility and brand image among existing and potential customers and providing liquidity to the existing shareholders.

Adlabs Entertainment owns and operates Imagica-The Theme Park, Aquamagica-The water Park and family hotel Novotel Imagica Khapoli. Spread over 132 acres in Khalapur, 74 km from Mumbai, the theme park became fully operational from November 2013 and features 25 rides and attractions of international standards, multi cuisine food and beverages (F&B) outlets, and retail and merchandise shops. Adlabs Entertainment reported a net loss of Rs 53.52 crore on revenue of Rs 72.15 crore for the period of six months ended September 2014. In the year ended March 2014, revenue stood at Rs 103.69 crore and loss Rs 52.42 crore.

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First Published: Apr 06 2015 | 4:33 PM IST

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