Multi-specialty hospital chain Narayana Hrudayalaya made a stellar debut on the bourses on Wednesday with the stock soaring nearly 35%, reports fe Bureau in Mumbai. Shares of the firm closed at R336.70 each on the BSE, well above the IPO price of Rs 250 per share. The debut outclassed that of InterGlobe Aviation, which runs no-frills carrier Indigo, which gained close to 15% when it listed in November last year. More than 5 crore Narayana Hrudayalaya shares changed hands on the BSE and NSE.
Calendar 2015 was a good year for IPOs with 21 companies raising more than R18,000 crore — the highest amount since 2010. Of these, seven posted a gain of more than 15% on listing day.
On the other hand, the benchmark Sensex yielded a negative 5% returns last calendar year, the worst yearly performance since 2011.
Narayana Hrudayalaya’s debut performance is the sixth best among stocks that have listed since January 2013. Dr Lal PathLabs, the last company to go public in CY15, surged nearly 50% on the day of listing, the best debut last year, followed by VRL Logistics, whose shares surged more than 43%.
The Bengaluru-based Narayana, promoted by cardiac surgeon Devi Shetty, had raised Rs 613 crore through the IPO last month, of which Rs 184 crore was raised through pre-IPO placements where 15 institutional investors were allotted shares at a price of Rs 250 apiece. Axis Capital, IDFC Securities and Jefferies India were the book-running lead managers for the issue.
Narayana Hrudayalaya operates 31 hospitals and 24 primary care facilities across India. In FY15, the company generated 90.7% of total revenue from 19 hospitals that offer multi-specialty and super-specialty services. About 7.3% of the revenue was from heart centres and the remaining from the management fee received from four managed hospitals, ancillary businesses and other standalone clinics and primary care facilities. The company registered a net loss of Rs 10.86 crore on revenue from operations of Rs 1,363.85 crore for FY15.