The initial public offering (IPO) of Gujarat Kidney and Super Speciality Hospital witnessed continued investor engagement as it entered its second day of bidding on Saturday, December 23. The public issue, which opened on December 22, will close for subscription on Monday, December 24, giving investors two more days to participate.
Strong Investor Response on Opening Day
By the end of the first day of the offer, the IPO was subscribed approximately 1.47 times the shares available for the public. This indicates a healthy initial appetite from investors for the regional healthcare provider's stock. The company is aiming to raise ₹251 crore through this fresh issue of equity shares, where all 2.2 crore shares are newly issued. The price band for the offer has been set between ₹108 and ₹114 per share.
Where Will The IPO Funds Be Used?
The capital raised from this public offering is earmarked for several strategic growth initiatives. The primary objectives include:
- Acquiring Parekhs Hospital located in Ahmedabad.
- Partially funding the cost for the already acquired Ashwini Medical Centre.
- Constructing a new hospital facility in Vadodara.
- Purchasing advanced robotic medical equipment.
- Repaying certain existing loans of the company.
- Supporting future hospital acquisitions and general corporate purposes.
Grey Market Premium Shows Correction
A notable development on the second day is the movement in the unofficial grey market premium (GMP). The Gujarat Kidney IPO GMP has seen a decline, settling at ₹4 today, compared to a higher premium of ₹7 earlier. Based on the current upper price band of ₹114, this GMP suggests a potential listing price of around ₹118, which would represent a modest premium of about 3.5% over the IPO price.
Gujarat Kidney and Super Speciality operates as a significant regional healthcare player within the state. It currently runs a network of seven mid-sized multi-speciality hospitals, boasting a combined capacity of 490 beds. The company provides a range of advanced medical services, positioning itself in Gujarat's growing healthcare sector.
With the bidding window open until December 24, market participants will be closely watching the final subscription numbers and the GMP trend to gauge the market sentiment ahead of the stock's potential listing.
