The firm's Rs 300 crore IPO, which opened on November 24, originally had a price band of Rs 278-Rs 293 per share and was due to close today, sources said. However, the price band has now been brought down and the offer has been extended till December 2, they said.
The company's share sale programme got a lukewarm response from investors and was subscribed only 0.53 times. It has attracted bids worth 47.15 lakh shares till date, as against 88.48 lakh shares on offer, according to information available with the National Stock Exchange.
Analysts said the price band was slashed on account of poor market conditions and unresolved regulatory issues that put a question mark over future drug approvals in the US.
"The downward revision of price band is due to the poor market condition and on concerns that some of the company's products could not get USFDA approvals," SMC Capital Equity Head Jagannadham Thunuguntla said.
The USFDA issued a warning letter to Claris Lifesciences on November 1 to address deficiencies in manufacturing practices at its Ahmedabad facility.
Company officials could not be reached for comments. Proceeds from the IPO will be used for capacity expansion, as well as to set up a research and development facility and to retire debt, a company official had said earlier.
The Ahmedabad-based company has appointed Enam Securities, Edelweiss Capital , JM Financial Consultants and ICICI Securities as the book running lead managers to the issue.
Claris Lifesciences is one of the largest sterile injectables pharmaceutical companies in the country, with a presence in 76 markets worldwide.
