Gujarat Kidney and Super Speciality IPO closes with 5x subscription on Day 3, retail portion booked 19x: Check GMP

The initial public offering of Gujarat Kidney and Super Speciality closed for bidding today, December 24. The Rs 251-crore IPO has been booked more than 5 times its offer size (521 percent) on Day 3.

The maiden public issue of the healthcare company received bids for nearly 6.9 crore shares, as against the offer size of 1.32 crore shares, according to data on NSE. Retail investors led the subscription numbers, booking their reserved portion over 19 times (1,903 percent).

Non Institutional Investors (NII) have booked the portion kept for them nearly six times (573 percent), while Qualified Institutional Buyers (QIB) have fully booked their reserved portion (106 percent).

Gujarat Kidney and Super Speciality IPO GMP:

Ahead of listing, the unlisted shares of the company were trading flat at the IPO price with zero grey market premium (GMP), according to data on Investorgain. The GMP has fallen from the 8.77 percent quoted by the site on December 18.

According to IPO Watch, the unlisted shares of the company were trading with 2.63 percent GMP over the IPO price.

About Gujarat Kidney and Super Speciality IPO:

Gujarat Kidney and Super Speciality launched its initial public offering to raise Rs 250.80 crore from the primary markets entirely through a fresh issue of up to 2.20 crore shares and no offer for sale (OFS) component. This means the entire fresh issue proceeds will go to the company and not the existing investors.

The company had fixed a price band of Rs 108-114 per share for the IPO which was open for public bidding between December 22 and December 24. The allotments are likely to be finalized by December 29, and the shares are scheduled to be listed on stock exchanges BSE and NSE on December 30.

Investors could bid for a minimum of 128 shares, requiring an investment of Rs 14,592 at the upper price band, and in multiples thereafter.

Gujarat Kidney and Super Speciality IPO anchor book:

A day before the IPO opened for public bidding, Gujarat Kidney and Super Speciality announced that it has raised more than Rs 100 crore from 10 anchor investors on December 19.

The company finalised allocation of 87.73 lakh equity shares to anchor investors at the upper price band. Craft Emerging Market Fund through its two sub funds - Citadel Capital Fund and Elite Capital Fund - is the largest investor in the company's anchor book, acquiring 39.47 lakh shares for Rs 45 crore.

This follows Khandelwal Finance and Venus Investments which picked up 13.16 lakh shares for Rs 15 crore, and 8.77 lakh shares for Rs 10 crore, respectively.

How will the IPO proceeds be used?

The company, that operates seven multi-speciality hospitals and four pharmacies in the state with total capacity of 490 beds, plans to spend Rs 77 crore from the fresh issue proceeds for the acquisition of Parekhs Hospital in Ahmedabad, Rs 12.4 crore for part-payment of purchase consideration for the already acquired Ashwini Medical Centre, and Rs 10.78 crore for acquisition of additional shareholding in subsidiary Harmony Medicare.