Lovable Lingerie IPO subscribed 28%

Receives bids for 10.65 lakh shares

The initial public offer (IPO) of women inner-wear manufacturer Lovable Lingerie was subscribed 0.28 times by 16:00 IST on the second day of the issue today, 9 March 2011. The IPO received bids for 10.65 lakh shares compared with 38.67 lakh shares on offer.



The company has fixed a price band of Rs 195-205 per share for the IPO. The IPO which closes on 11 March 2011 would constitute 27.08% of the post issue paid-up capital of the company.

Lovable Lingerie received commitment of Rs 14 crore from five anchor investors on Monday as against issuing 6.82 lakh equity shares at higher end of price band of Rs 195-205 a share. The anchor investors are -- HDFC Trustee Company, SBI MF, DSP Blackrock Micro Cap Fund, HSBC Equity Fund and Birla Sun Life Trustee Company.

Lovable Lingerie plans to set up a manufacturing facility to create additional capacity at Bangalore. Lovable Lingerie will use the issue proceeds for brand building of 'college style' brand and investment in joint ventures, setting up exclusive brand outlets, along with retail store modules for shop-in-shop and upgradation of design studios and other than general corporate purposes.