Investors seem to be bullish on the prospects of Maitreya Medicare IPO, as they bought 54.2 crore equity shares on November 1, the final day of bidding, which was 410.09 times higher than the offer size of 13.21 lakh shares.
High networth individuals and retail investors looked aggressive among the participants, buying 790.7 times and 521.06 times the allotted quota, while qualified institutional buyers have bid 78.4 times the portion set aside for them.
It was the fifth public issue in the current year crossing the 400 times subscription, after Kahan Packaging, Srivari Spices and Foods, Madhusudan Masala, and Anlon Technology Solutions.
Given the overwhelming response to the issue, investors in the grey market also looked optimistic as IPO shares continued to trade with 73 percent premium over the upper price band, analysts said on condition of anonymity. The grey market is an unofficial platform wherein the IPO shares can be bought and sold till the listing.
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The Rs 14.89-crore public issue by the Surat-based multispeciality hospital was opened for subscription on October 27, with a price band of Rs 78-82 per share.
The offer consists of only a fresh issue component by the company.
Maitreya Medicare with a single multispeciality hospital of 125-bed capacity is in the process of setting up another hospital - Maitreya Hospital - at Valsad in Gujarat, at a capex of Rs 18 crore.
The healthcare services provider will be spending Rs 7.5 crore from the net fresh issue proceeds, for setting up a hospital at Valsad, while the remaining Rs 9.5 crore will be utilised through internal accruals and Rs 1 crore through borrowings.
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Further, the company will redeem Rs 1 crore worth of non-convertible redeemable preference shares through fresh issue money, and Rs 5 crore will be used for working capital requirements. And the remaining amount will be kept for general corporate purposes.
Now, investors, who participated in the public issue, will be keen to know the allotment status. The company will finalise the basis of allotment of IPO shares by November 6 and will transfer equity shares to the demat accounts of successful investors by November 8.
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The equity shares will be available for trading on the NSE Emerge, with effect from November 9, as per the IPO schedule.
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