The initial public offering (IPO) of Gujarat Kidney and Super Speciality Hospital has entered its crucial final day of bidding today, December 24. The public issue, which opened for subscription on December 22, has witnessed a robust response from investors, setting the stage for a successful market debut.
Strong Investor Appreciation on Day Two
As the bidding process moved into its third and final day, the IPO had already been subscribed a significant 2.67 times by the end of the second day. This strong demand highlights investor confidence in the regional healthcare provider's growth plans and market position. The company has set a price band of ₹108 to ₹114 per share for its maiden public offering.
Utilisation of IPO Proceeds for Expansion
The IPO consists entirely of a fresh issue of up to 2.2 crore equity shares. At the upper end of the price band, this will help the company raise approximately ₹250.8 crore. The management has outlined a clear plan for deploying these funds to accelerate growth.
The primary objectives include financing the proposed acquisition of Parekhs Hospital in Ahmedabad and making a part-payment for the already acquired Ashwini Medical Centre. A substantial portion will also be directed towards establishing a brand new hospital facility in Vadodara.
Other key uses of the capital are:
- Purchasing advanced robotic equipment for the upcoming Vadodara hospital.
- Repaying certain existing debts to strengthen the balance sheet.
- Pursuing inorganic growth through potential future acquisitions.
- Meeting general corporate expenses to support operations.
GMP and Expected Listing Details
The Grey Market Premium (GMP) for the Gujarat Kidney IPO has seen some correction. The latest reported GMP is ₹2.5 per share. Based on this, the estimated listing price could be around ₹116.5, which would represent a modest premium of approximately 2.19% over the upper price band.
Provided the subscription process concludes successfully today, the equity shares of Gujarat Kidney and Super Speciality are scheduled to get listed on both the BSE and the NSE on December 30. This will offer public investors an opportunity to trade the stock.
About the Company
Gujarat Kidney and Super Speciality is a prominent regional healthcare player based in central Gujarat. The company operates an integrated network of seven mid-sized multi-speciality hospitals with a combined bed capacity of 490 beds. Its service portfolio is focused on providing comprehensive secondary and tertiary care to patients in its operational regions.
The final subscription numbers for the IPO will be keenly watched by market participants as the bidding window closes today. The strong response so far indicates a healthy appetite for the stock ahead of its listing next week.
