The initial public offering (IPO) of Global Health, which operates the Medanta chain of hospitals, received bids for 1.2 crore equity shares against an offer size of 4.67 crore shares subscribing 26 percent on November 3, the first day of bidding.
Retail investors had bought 12 percent of their allotted quota of shares, while non-institutional investors had bid for 18 percent of their reserved portion, subscription data available with the exchanges showed.
Qualified institutional buyers had put in bids for 54 percent shares of the portion set aside for them.
The offer size has been reduced to 4.67 crore shares from 6.56 crore after the company mobilised Rs 661 crore through the anchor book on November. The IPO closes on November 7.
Click Here To Read All IPO Related News
Global Health aims to mop up Rs 2,205.6 crore through the IPO, which comprises a fresh issue of Rs 500 crore and an offer for sale of Rs 1,705.6 crore (5.07 crore shares) by selling shareholders.
The price band has been fixed at Rs 319-336 a share.
The proceeds from the fresh issue will be used to repay debts and for general corporate purposes. More than three-fourth of money being raised from the issue will go to selling shareholders Anant Investments and Sunil Sachdeva (jointly with Suman Sachdeva).
Also read: Moneycontrol's Exclusive Research Note on Global Health IPO
Incorporated on 2004, Medanta is one of the largest private multi-speciality hospital chains operating in India’s north and east regions. It has five hospitals —in Gurugram, Indore, Ranchi, Lucknow and Patna—in operation, while one is being built in Noida in Uttar Pradesh.
As of June 2022, Medanta provided healthcare services in over 30 specialties and engaged over 1,300 doctors, with 2,467 installed beds.
At the upper price band of Rs 336, Medanta is available at a P/E of 46x (FY22 EPS), which is in-line compared to its peers, Geojit Securities said.
Also read: Archean Chemical Industries to launch IPO on November 9
Considering its strong brand value, new hospital addition, rise in average revenue per occupied bed (ARPOB), pick up in medical tourism, increasing affordability for healthcare services and promising industry outlook, the brokerage has assigned a “subscribe” rating on a short to medium term basis.
The Indian healthcare industry is expected to clock a CAGR of 13-15 percent and reach Rs 8.3 lakh crore by FY26, driven by increasing affordability for healthcare services and schemes launched by the government like Ayushman Bharat and the national health insurance plan.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
