Lotus Eye Care IPO opens June 12; price band fixed at Rs 38-42/share

New Delhi, Jun 10 (UNI) Lotus Eye Care Hospital Ltd today said it proposes to enter the capital market with a public issue of one lakh equity shares in the price band of Rs 38-42 per share of Rs 10 each to fund its expansion plans.

The offer opens on June 12.

''We expect to raise Rs 42 crore through the IPO. The issue, constituting 48.09 per cent of the fully diluted post issue capital, will close on June 17,'' company CMD S K Sundaramoorthy told reporters here.

We intend to utilise the proceeds of the issue to partly fund our Rs 55 crore expansion plan. It will cover expansion of existing facilities and establishment of new centres, he added.

Lotus plans to strengthen its presence in the southern part of the country with two primary eye care centres in Bangalore and one in Chennai.

To fund its plans, it will also procure Rs 99.95 crore through term loans and Rs 3.05 crore through internal accruals.

Lotus Eye Care group has a network of four eye care hospitals--two in Coimbatore, one in Salem, and one in Tirupur.

The shares will be listed on Bombay Stock Exchange and National Stock Exchange of India. Keynote Corporate Services Ltd is the BRLM and Canara Bank Merchant Banking Division is the Co-Lead Manager for the Issue.

UNI SR PDT GC1629