HealthCare Global’s (HCG’s) initial public offering (IPO) saw tepid response on Thursday with subscription of 0.54 times, data from the stock exchanges showed. The IPO is priced in the range of Rs 205- Rs 210.
On the second day of the IPO, 88 lakh shares were bid for of the total 1.63 crore shares on offer. Qualified institutional buyers (QIBs) subscribed 0.75 times or 66 lakh shares of the 89 lakh shares, reserved for their quota. High net-worth individuals (HNIs) bid for only 11 lakh shares or 0.27 times out of the 44 lakh shares on offer reserved for their category.
Retail investors, on the other hand, bid for 9 lakh shares of the 29 lakh shares reserved for their category or 0.31 times. The company is planning to raise Rs 649 crore through the public issue. HCG has already raised R292 crore from 11 of its anchor investors including IFC, Sundaram Mutual Funds, HDFC Standard Life Insurance and Reliance Life on Tuesday.
The proceeds of the IPO are to be used for clearing of an existing bank debt of nearly Rs 170 crore, purchase of medical equipment, investment in IT software, services and hardware and for other general corporate purposes.
HealthCare Global is the fourth healthcare firm to come out with its IPO in the last three months after Dr Lal Pathlabs, Alkem Laboratories and Narayana Hrudayalaya.
Kotak Mahindra Capital, Edelweiss Financial Services, Goldman Sachs (India) Securities, IDFC Securities, IIFL Holdings and Yes Bank are the Book Running Lead managers for the issue. The offer would constitute up to 35.03% of the company’s post-offer paid-up equity share capital.