The IPO of Jyothy Laboratories received strong investor responce. As per data on the NSE website, the IPO was subscribed 45.83 times. The issue received bids for 20.30 crore shares as against the issue size of 44.30 lakh shares. The IPO closed on Tuesday, 27 November 2007.

The qualified institutional buyers (QIBs) category was subscribed 66.41 times, the non-institutional investors category was subscribed 49.89 times and the retail investors segment was subscribed 14.67 times.

The FMCG company had set Rs 620-690 price band for the IPO. At the lower band of Rs 620 per share P/E would be 18.7 and at the upper price band of Rs 690 per share P/E would be 20.8, based on the EPS of Rs 33.2 in the year ended June 2007. Face value per share is Rs 5 face value.

The company would raise Rs 274 crore at the lower end of the band and Rs 305 crore at the higher end.

The company reported a net profit of Rs 48.14 crore on sales of Rs 361.89 crore in year ended June 2007.

The offer would constitute 30.52% of the post issue paid up capital of the company. Post-issue the stake of the promoters would be 69.47%.

The company has drawn up Rs 40 crore capital expenditure plan for FY 2008. It plans to leverage the dominant Ujala brand with other branded fabric care products, utilise its wide distribution network and marketing expertise, improve efficiencies and manage costs and increase focus on supermarket and hypermarket sale.

The present investors, including Canzone, ICICI Bank Canada, ICICI Bank UK Plc, South Asia Regional Fund and CDC Investment Holdings, are selling their 44,30,250 equity shares through the IPO. The remaining stake is held by founder chairman M P Ramachandran and his family.

Jyothy Labs is engaged in the fabric care, household insecticide, surface cleaning, personal care and air care segments of the Indian market. It offers branded products including fabric whitener, mosquito repellent, dishwashing, bath and incense products.

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