The shares of Park Medi World Ltd, a prominent hospital chain operator under the Park brand, are scheduled to make their stock market debut today, December 16. This follows the successful closure of the company's initial public offering (IPO) last week. The listing will take place on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) at 10:00 AM.
Pre-Listing Sentiment and Grey Market Premium (GMP)
Ahead of the listing, the grey market premium (GMP), an unofficial indicator of investor sentiment, has remained subdued. As of the latest data, the Park Medi World IPO GMP stands at ₹5.5. This suggests the shares are trading in the unofficial market at ₹167.5, which is a premium of approximately 3.40% over the issue price of ₹162 per share.
It is noteworthy that the GMP has seen significant volatility, having touched a high of ₹33 at one point before dropping to nil and recovering to current levels. This tepid GMP aligns with the view of some analysts expecting a mild premium listing.
Analyst Views and Post-Listing Strategy
Market experts have offered mixed perspectives on the IPO's reception and listing prospects.
Arun Kejriwal, Founder of Kejriwal Research and Investment Services, pointed out that the IPO received a "tepid response from primary market investors," a trend he believes may continue on the listing day. He anticipates the stock to list around the upper price band of ₹162 per share. For those who received allotments, Kejriwal advises exiting at higher levels, citing expectations of a par listing in both secondary and grey markets.
In contrast, Shivani Nyati, Head of Wealth at Swastika Investmart, highlighted the strong subscription numbers. She noted the public issue received a robust response, particularly from institutional investors, with an overall subscription of 8.52 times. The current GMP of 2–3%, according to her, reflects positive pre-listing sentiment and points towards a "stable to moderately positive listing." Nyati also emphasized Park Medi World's strong position in the affordable healthcare sector, its expansion in Tier-2 and Tier-3 cities, and its robust revenue growth over the past three years.
Park Medi World IPO: Key Subscription and Financial Details
The IPO, which was open for subscription from December 10 to December 12, witnessed strong demand. The allotment of shares was finalized on December 15.
The offer was subscribed 8.52 times overall, with bids received for 338.8 million shares against the 41.8 million shares on offer. The subscription breakdown reveals enthusiastic participation from different investor classes:
- Non-Institutional Investors (NII): 15.15 times
- Qualified Institutional Buyers (QIB): 11.48 times
- Retail Investors: 3.16 times
The company set a price band of ₹154 to ₹162 per share for the IPO, aiming to raise up to ₹920 crore at the upper end. The issue comprised a fresh issue of shares worth ₹770 crore and an offer for sale (OFS) of shares worth ₹150 crore by promoter Ajit Gupta.
The proceeds from the fresh issue are earmarked for key objectives:
- ₹380 crore for repayment of debt.
- ₹60.5 crore for the development of a new hospital and expansion of an existing hospital through subsidiaries Park Medicity (NCR) and Blue Heavens.
The book-running lead managers for the IPO were Nuvama Wealth Management, CLSA India, DAM Capital Advisors, and Intensive Fiscal Services. KFin Technologies acted as the registrar to the offer.
Disclaimer: The views and recommendations expressed are those of individual analysts. Investors are advised to consult certified experts before making any investment decisions, as market conditions are subject to change.
