Talwalkars IPO subscribed 90% by day two

Gets bids for 54.58 lakh shares as against 60.50 lakh shares on offer

The initial public offer (IPO) of Talwalkars Better Value Fitness, an operator of fitness centers, was subscribed 0.90 times on the second day of its opening. The issue received bids for 54.58 lakh shares, as against 60.50 lakh shares on offer.

The price band for the IPO is set at Rs 123 - Rs 128 per share. The IPO remains open for bidding between 21 and 23 April 2010. The offer consists of a fresh issue of 60.50 lakh shares of the face value Rs 10 each. Ratings agency CARE has assigned 'IPO Grade 3' to the issue.

Out of the issue proceeds, around Rs 50 crore are to be used for setting up of additional health clubs, Rs 20 crore for repaying certain unsecured loans and remaining for meeting the issue related expenses.

The company owns one of the largest and oldest fitness chains in India. The company (as of December 2009) owned 37 health clubs and operated 14 more through franchisee route across 24 cities in 11 states across the country. The company's health clubs offer a suite of standardised services like gym, spa, aerobics and health counselling under the brand name 'Talwalkars'.