The initial public offering (IPO) of Gujarat Kidney and General Hospital Limited concluded its subscription period on a strong note, receiving an enthusiastic response from the investment community. The three-day bidding window, which commenced on Monday, December 22, saw the issue being oversubscribed by more than five times, indicating robust investor confidence in the regional healthcare provider.
Robust Subscription Numbers Across Segments
Exchange data reveals that the public issue attracted bids for a staggering 6.89 crore equity shares against the total offer size of 1.32 crore shares. This translates to an overall subscription rate of 5.21 times the shares on offer. A closer look at the category-wise subscription data highlights where the strongest demand originated.
The segment of retail individual investors (RIIs) demonstrated overwhelming interest, subscribing to their allocated portion a remarkable 19 times. Non-institutional investors (NIIs), which include high-net-worth individuals, also showed significant appetite, bidding for 5.73 times their quota. The qualified institutional buyers (QIB) segment was fully covered, subscribing to 1.06 times the shares reserved for them.
IPO Details and Fund Utilisation
Gujarat Kidney's IPO was a book-built issue worth ₹250.80 crore, consisting entirely of a fresh issue of 2.20 crore shares. The company had set a price band of ₹108 to ₹114 per share for the offer.
The proceeds from the fresh capital raise are earmarked for several strategic purposes. The company plans to use the funds for:
- The acquisition of Parekhs Hospital.
- Meeting capital expenditure requirements for expansion and upgrades.
- Repayment of certain outstanding debts to strengthen the balance sheet.
- General corporate purposes to support ongoing operations.
Allotment, Refund, and Listing Timeline
The allotment of shares for the Gujarat Kidney IPO is scheduled to be finalised on Friday, December 26. Following this, the company will initiate the refund process for unsuccessful applicants on Monday, December 29. On the same day, the shares will be credited to the demat accounts of successful allottees.
Investors can expect the equity shares of Gujarat Kidney to make their stock market debut on Tuesday, December 30. The listing will occur on both premier exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Grey Market Premium Hints at Listing Gains
As of the closing day of the subscription, the grey market premium (GMP) for the Gujarat Kidney IPO was noted at ₹3 per share. This unofficial indicator suggests the stock could list at a modest premium to its issue price. Based on the upper price band of ₹114, this GMP points to an estimated listing price of around ₹116, reflecting a potential gain of approximately 2.6% for IPO investors.
It is crucial for investors to remember that the GMP is an informal benchmark and can be volatile. It should not be the sole basis for any investment decision, as the actual listing price is determined by market forces on the day of debut.
About Gujarat Kidney and General Hospital
Gujarat Kidney is a prominent regional healthcare player operating in the central part of Gujarat. The company runs a chain of mid-sized, multi-specialty hospitals with an integrated service model focused on secondary and tertiary care.
On a consolidated basis, the company's portfolio includes seven multi-specialty hospitals and four pharmacies. Its total bed capacity stands at 490 beds, with an approved capacity of 455 beds and a current operational capacity of 340 beds, as per its Red Herring Prospectus (RHP).
Disclaimer: This article is for informational purposes only. Investors are strongly advised to consult with certified financial experts and conduct their own independent research before making any investment decisions.
