Shares of Global Health, which operates and manages hospitals under the Medanta brand, made a strong market debut today. The stock listed at ₹401 per share vs its issue price of ₹336 per share, a premium of over 19 percent on the NSE. Meanwhile, on BSE, it listed at a premium of 18.5 percent at ₹398. The ₹2,206-crore initial public offering of Global Health opened for subscription on November 3 and closed on November 7. The company had fixed the IPO price band at ₹319-336 per share.
The stock hit a high of ₹424.65 on NSE in intra-day deals, up 26.3 percent from its issue price and closed at ₹417.30, up 24.2 percent from its IPO price.
The IPO has offer received bids for over 44.79 crore (44,79,85,032) shares against the issue size of over 4.67 crore (4,67,42,397) shares, the data showed.
The shares which are to be allocated for the qualified institutional buyers (QIBs) were subscribed 28.64 times, while the portion for noninstitutional investors was subscribed 4.02 times and that of retail individual investors (RIIs) was subscribed around 88 percent or 0.88 times, the data showed.
The IPO consisted of a fresh issue of equity shares aggregating to ₹500 crore and an offer for sale (OFS) of up to 5.08 crore equity shares. As a part of the OFS, Anant Investments, an affiliate of private equity major Carlyle Group, and Sunil Sachdeva (jointly with Suman Sachdeva) offloaded equity shares.
The company was founded by Dr Naresh Trehan, who is a renowned cardiovascular and cardiothoracic surgeon, is also the promoter of the company. It is a leading private multi-specialty tertiary care provider in the north and eastern regions of India. The company has key specialties in cardiology and cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopedics, liver transplant, and kidney and urology.
Ahead of the IPO, the firm had raised ₹662 crore from anchor investors. The anchor investors include--Government of Singapore, Nomura, Axis Mutual Fund (MF), HDFC MF, Aditya Birla Sun Life MF, SBI MF, ICICI Prudential MF, Kotak MF, Max Life Insurance Company and SBI Life Insurance Company.
Most brokerages were bullish on the issue and recommend subscribing to it on the back of strong brand value, cost efficiency, strong financials, robust industry outlook and attractive pricing.
"At the upper price band of ₹336, Medanta is available at a P/E of 46x (FY22 EPS), which is in line compared to its peers. Considering its strong brand value, new hospital addition, rise in ARPOB, pick up in medical tourism, increasing affordability for healthcare services and promising industry outlook, we assign a 'Subscribe' rating on a short to medium-term basis," said Geojit.