Maitreya Medicare IPO bought 75.39 times on day 2, retail portion booked 94.55 times

Maitreya Medicare IPO opens for second day of bidding

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The initial public offering of Maitreya Medicare has seen a massive 75.39 times subscription on the second day of bidding, October 30, with investors buying 9.96 crore equity shares against issue size of 13.21 lakh shares.

Retail investors looked extremely positive on the company, as they had bid 127.58 times the allotted quota, while high networth individuals (non-institutional investors) have bought 67.57 times the portion set aside for them.

The part set aside for qualified institutional buyers was subscribed 17 times.

The Gujarat-based multispeciality hospital intends to mop up Rs 14.89 crore via public issue comprising only a fresh issue of 18.16 lakh equity shares.

It is a book built issue, with a price band at Rs 78-82 per share.

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Of the net fresh issue proceeds, Maitreya will invest Rs 7.5 crore in its subsidiary Maitreya Hospital for setting up a hospital at Valsad and spend Rs 1 crore for redemption of part of issued non-convertible redeemable preference shares.

Further, working capital requirements of Rs 5 crore will also be funded through IPO proceeds and the remaining amount will be kept aside for general corporate purposes.

In case of new hospital in Valsad, the firm will spend another Rs 9.5 crore through its internal accruals and the balance Rs 1 crore through borrowings. The total estimated cost for the set up of hospital is Rs 18 crore.

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Maitreya has already raised Rs 4.05 crore through its anchor book at the upper price band. Newgen Undiscovered Value Fund, Absolute Returns Scheme, Swyom India Alpha Fund, and Finavenue Capital Trust-Finavenue Growth Fund are investors in the anchor book.

Investors in the grey market seem to be showing great interest in the IPO as shares traded with more than 70 percent premium over the upper price, analysts on anonymity said. The grey market is an unofficial platform for trading in IPO shares till the listing.