Shares of Park Medi World Ltd, the operator of the Park hospital chain, witnessed a subdued entry into the stock market on Wednesday. The company's stock made its debut at a discount compared to its issue price, reflecting cautious investor sentiment on the listing day.
A Subdued Market Debut
The initial public offering (IPO) of Park Medi World had a price band set at Rs 154 to Rs 162 per share. The final issue price was fixed at the upper end of this band at Rs 162. However, on the day of listing, the stock opened lower. On the Bombay Stock Exchange (BSE), it was listed at Rs 155.60, marking a discount of 3.95% to the issue price. Over at the National Stock Exchange (NSE), the opening price was slightly better at Rs 158.80, which was still a 1.97% discount. Following the listing, the company's market valuation was recorded at Rs 6,949.77 crore.
Strong Investor Interest in the IPO
Despite the muted listing, the company's public offering had garnered significant interest from investors during the subscription period. The Rs 920-crore IPO closed with an oversubscription of more than 8 times on the final day of bidding, which was Friday last week. The IPO comprised two parts: a fresh issue of shares worth Rs 770 crore and an offer-for-sale (OFS) of shares valued at Rs 150 crore by the promoter, Ajit Gupta.
Where Will the IPO Proceeds Be Used?
The company has outlined clear plans for utilising the funds raised from the fresh issue. A significant portion, Rs 380 crore, is earmarked for the repayment of debt. Another Rs 60.5 crore is allocated for hospital development and expansion. Specifically, subsidiary Park Medicity (NCR) will use funds for a new hospital, while Blue Heavens will expand an existing facility.
Furthermore, Rs 27.45 crore has been set aside for the purchase of medical equipment by the company and its subsidiaries, Blue Heavens and Ratangiri. The remaining capital from the IPO will be utilised for general corporate purposes and potential unidentified inorganic growth acquisitions.
Park Medi World operates a substantial network of hospitals across North India. Its current footprint includes 13 multi-super specialty hospitals. The geographical spread consists of eight hospitals in Haryana, one in New Delhi, three in Punjab, and two in Rajasthan. The IPO funds are expected to fuel further growth and consolidation in this sector.
