The Gujarat-based healthcare provider, Gujarat Kidney & Super Speciality, is gearing up for its much-anticipated entry into the public markets. The company's initial public offering (IPO) is scheduled to open for subscription on December 22, 2023, and will remain available for investors until December 24, 2023. This marks a significant step for the regional hospital chain as it seeks capital for strategic growth.
IPO Details and Fund Allocation
The ₹250.8 crore IPO is a complete fresh issue of 2.20 crore shares, with no offer-for-sale component from existing promoters. The company has set a price band of ₹108 to ₹114 per equity share, each having a face value of ₹2. Investors can bid in lots, with one lot comprising 128 shares.
The primary objective of raising these funds is multifaceted and aimed at strengthening the company's footprint in Gujarat's healthcare sector. The proceeds will be strategically deployed for:
- Acquiring Parekhs Hospital Private Limited in Ahmedabad.
- Making a partial payment for the already acquired Ashwini Medical Centre.
- Increasing the company's stake in its subsidiary, Harmony Medicare Pvt Ltd in Bharuch.
- Funding capital expenditure for a new dedicated women's healthcare hospital in Vadodara.
- Purchasing advanced robotic medical equipment.
- Reducing existing debt and supporting inorganic growth through future acquisitions.
Subscription and Listing Timeline
The IPO follows the book-building process. The allocation is reserved as follows: 75% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 10% for retail investors.
The final allotment of shares is expected to be completed by December 26, 2023. Successful investors can then look forward to the stock's debut on the bourses. The shares of Gujarat Kidney & Super Speciality are tentatively set to list on both the BSE and NSE on December 30, 2023.
Nirbhay Capital Services Private Limited is acting as the book-running lead manager for the offer, while MUFG Intime India Limited is the registrar. As of the latest updates, the company's shares are not trading in the grey market, indicating a grey market premium (GMP) of ₹0.
About the Healthcare Provider
Gujarat Kidney and Super Speciality operates a network of seven mid-sized, multi-speciality hospitals across the state, focusing on secondary and tertiary care. Its portfolio includes four in-hospital pharmacies and facilities in key cities like Vadodara, Bharuch, Godhra, Borsad, and Anand. Some of its prominent units are Gujarat Kidney and Superspeciality Hospital (Vadodara), Raj Palmland Hospital (Bharuch), and Ashwini Medical Centre (Anand).
Disclaimer: This article is for informational purposes only. Readers are advised to consult with a certified investment advisor before making any financial decisions.
