Goldline Pharmaceutical IPO kicks off with 21x subscription; RFBL Flexi Pack issue fully booked on Day 1

Maharashtra-based pharma products marketing company Goldline Pharmaceutical and printed multilayer flexible packaging material manufacturer RFBL Flexi Pack received a healthy response to their maiden public issues on May 12, with their IPOs subscribed 20.79 times and 1.18 times, respectively, on the first day of bidding.

Goldline Pharmaceutical is raising Rs 11.61 crore through its initial public offering (IPO) comprising 27 lakh shares, with the price band fixed at Rs 41–43 per share.

Investors bid for 4.09 crore equity shares of Goldline Pharmaceutical against the offer size of 19.68 lakh shares, resulting in an overall subscription of 20.79 times through 5,726 applications. The retail investors’ portion was subscribed 34.07 times, while the quotas reserved for non-institutional investors and qualified institutional buyers were subscribed 18.07 times and 1.31 times, respectively.

Goldline Pharmaceutical, which markets its products under the Goldline brand, has already raised Rs 3.14 crore from two anchor investors — Upsurge Opportunities Fund and Vikasa India EIF I Fund - Share Class P — by allotting 7.32 lakh shares.

The company plans to utilise Rs 8.35 crore from the IPO proceeds towards repayment of certain borrowings, while the remaining funds will be used for general corporate purposes.

Goldline Pharmaceutical has contractual arrangements with 15 manufacturers that produce products based on market research, demand analysis, and prescribed specifications for its 8 distributors, who further supply them to retailers and wholesalers.

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Meanwhile, the IPO of RFBL Flexi Pack was subscribed 1.18 times as investors bid 83.27 lakh shares against the offer size of 70.65 lakh shares via 922 applications on Tuesday.

The demand remained healthy from across categories of investors, with non-institutional investors bidding 1.59 times their reserved portion. The parts set aside for qualified institutional buyers and retail investors were subscribed to 1.11 times and 1.07 times, respectively.

RFBL Flexi Pack, which manufactures printed multilayer flexible packaging material such as plastic film rolls and pouches used for packaging applications, approached capital markets to mobilise Rs 35.33 crore via IPO. The price band for the offer is Rs 47-50 per share.

The company intends to spend Rs 12.4 crore of IPO proceeds for the acquisition of land for establishing a manufacturing facility at Sabarkantha (Gujarat), construction and development of infrastructure and associated facilities, and purchase of plant and machinery.