GPT Healthcare stock expected to list at 5% premium to IPO price on February 29

GPT Healthcare IPO: Ahead of the listing, the shares were commanding a 9 percent premium in the grey market

GPT Healthcare stock is expected to make a positive debut on bourses on February 29. Analysts expect the shares to list at a 5 percent premium over the IPO price, somewhere around Rs 195.

Ahead of the listing, the shares were commanding a 9 percent premium in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

Also Read: GPT Healthcare IPO: Play on eastern India’s healthcare demand

“GPT Healthcare IPO received a muted 8.52x oversubscription. However, we expect a positive listing for the issue when it is listed on the bourses on Thursday. We expect the stock to list at a premium of around 5 percent to the issue price of Rs 186 per share,” said Prathamesh Masdekar, Research Analyst, StoxBox.

The price band for the IPO, which closed for subscription on February 26, was fixed at Rs 177-186 per share. The company raised around Rs 525.14 crore through the fresh issue of 21.5 lakh shares worth Rs 40 crore and an offer-for-sale of 2.6 crore shares worth Rs 485.14 crore.

Also Read: GPT Healthcare IPO: 10 things to know about the Rs 525-cr issue

“Considering the subdued market mood, we can assume a flat listing 5 percent higher than its issue price of Rs 186  apiece,” said Prashanth Tapse, Sr VP Research & Research Analyst at Mehta Equities.

The public offer was subscribed 8.5 times with the retail portion getting 2.4 times. Non-institutional investors bid 11 times and qualified institutional buyers picked 17 times of the allotted quota.

All you need to know about GPT Healthcare IPO

GPT Healthcare (ILS Hospitals) is one of the key regional corporate healthcare companies in Eastern India in terms of the number of beds and hospitals as of fiscal year 2023. The company runs a chain of mid-sized full-service hospitals under the brand and provides integrated healthcare services, with a focus on secondary and tertiary care.

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