Singapore govt, others commit Rs 184 cr for Narayana IPO

Narayana Hrudayalaya, which is set to hit the primary markets with a Rs 613-crore IPO today, said it raised Rs 184 crore from 15 anchor investors, including Singapore government, at the upper price band. The Devi Shetty-run hospital company has allotted 73.57 lakh equity shares at Rs 250 per share aggregating to Rs 183.93 crore to anchors investors like Morgan Stanley, Mirae Asset Management, Nomura, Government of Singapore, Reliance AMC, Birla Sun Life, DSP Blackrock, UTI, ICICI Prudential, SBI MF among others. The IPO opens on December 17 and closes on December 21 and the company has set price band of Rs 245-250 for the sale.

Post-IPO, promoters would have 65 percent stake in the company. The IPO includes an offer of sale of up to 2.45 crore equity shares representing 14.04 percent stake in the company by the promoters and other existing shareholders. While the government of Singapore picked up 3.95 percent, Monetary Authority of Singapore picked up 2.72 percent in the issue, according to a statement from the company.

FIL Investments, Mauritius picked up 6.67 percent, Mirae Asset Asia picked up 6.67 percent, and Reliance Capital Trustee Co got 5.04 percent while another Reliance Capital Trustee Co arm picked up 1.63 percent. Birla Sunlife Trustee Company (1.67 percent), its another arm (5 percent), HDFC Trustee Company (6.66 percent), three funds from ICICI Pru Growth Fund (around 6 percent, DSP Blackrock (6.67 percent), and Morgan Stanley (13.33 percent). The book running lead managers to the offer are Axis Capital, IDFC Securities and Jefferies India.

Shetty set up the hospital in 2000 and operates a chain of 23 multispecialty, tertiary and primary healthcare facilities and eight heart centres, and 24 primary care facilities across 31 cities, with 5,442 operational beds and the potential to reach a capacity of up to 6,602 beds. In FY 2015, the facilities provided care to over 1.97 million patients. As per Shetty, the company plans to set up four new hospitals at an estimated cost of around Rs 100 crore.

The 241 bedded hospital at Vaishnodevi will be set up in public-private partnership (PPP) model and it will be ready in 12 months period. "We are also setting up new hospital in Mumbai and 226 bedded facility in Lucknow. The company's new facility at Bhubaneshwar is still under discussion stage," he had said recently, adding that the company will also pursue inorganic growth for future expansion.

Narayana Hrudayalaya is the third company from healthcare sector to launch IPO this month after diagnostic chain Dr Lal PathLabs and pharmaceutical firm Alkem Laboratories.