Wednesday, June 1, 2011

Birla Pacific Medspa IPO

Birla Pacific Medspa, a Yash Birla Group company has come out with an IPO offering of Rs 65.175 crore. The company operates med spa centres under the brand name “EVOLVE”. A med spa or medical spa is a hybrid between a medical clinic and a day spa and operates under the supervision of medical doctor.

The IPO opens on 20th June, 2011 and shall close on 23rd June, 2011. The company has announced the price band of the IPO at Rs 10-11.

The proceeds of the IPO are proposed to be used for the capital expenditure towards establishing 55 outlets of Evolve Medspa across various cities and places, with cost of Rs 49.50 crore; brand promotion with Rs 6 crore; and working capital requirements of Rs 70 lakh for running the above centres.

Arihant Capital Markets Ltd is the book running lead manager to the issue.

Recommendation:
Brickworks Ratings has assigned Grade 2 to the IPO. We would not recommend this IPO to investors at this time.

Subscription:
Birla Pacific Medspa IPO managed to get fully subscribed. The IPO got 1.18 times subscribed at the close.

At the close of the IPO,
QII segment got subscribed by 1.04 times
NII segment got subscribed by 0.17 times
Retail segment got subscribed by 1.82 times

Allotment:
Click here to check Birla Pacific Medspa IPO Allotment Status.

Listing:
Birla Pacific listed on 8th July, 2011 and had a great listing!! The stock rose153.5%, to close at Rs 25.35, after hitting an intra-day high of Rs 30.70 (207%) as against issue price of Rs 10 a share. Still not convinced of the rally though and would be worth seeing if the stock sustains this price in the coming weeks.