Narayana Hrudayalaya IPO subscribed 30% on Day 2

Healthcare services major Narayana Hrudayalaya's initial public offer was subscribed only 30 percent on the second day of the offer on Friday. The Rs 613-crore IPO received bids for 51,12,900 shares against the total issue size of 1,71,66,309 shares, data available with the NSE till 1700 hrs showed. The portion set aside for qualified institutional buyers (QIBs) was subscribed 46 percent and retail investors category received 32 percent subscription.

Non institutional investors pie was, however, subscribed just 2 percent, as per BSE data. Narayana Hrudayalaya has raised Rs 184 crore from 15 anchor investors, including the Singapore government, at the upper price band. The IPO, which opened for subscription on Thursday, closes on December 21 and the company has set a price band of Rs 245- 250 for the sale.

Post-IPO, promoters will have 65 percent stake in the company. The IPO includes an offer of sale of up to 2.45 crore equity shares from promoters and other existing shareholders, representing 14.04 percent stake in the company. The book running lead managers to the offer are Axis Capital, IDFC Securities and Jefferies India.

Narayana Hrudayalaya is the third company from the healthcare sector to launch IPO this month after diagnostic chain Dr Lal PathLabs and pharmaceutical firm Alkem Laboratories. The IPOs of Alkem Laboratories and Dr Lal PathLabs managed to get over-subscription on the second day of their issue. Devi Shetty set up the hospital in 2000 and operates a chain of 23 multi-specialty, tertiary and primary healthcare facilities and eight heart centres, and 24 primary care facilities across 31 cities, with 5,442 operational beds and a potential to reach a capacity of up to 6,602 beds.