Ahmedabad-based multi-speciality hospital chain Shalby Hospital made a tepid debut on the bourses on Friday. The stock debuted at Rs 239.70, 3.34 % below its issue price of Rs 248 on the National Stock Exchange (NSE). The shares closed 3.38% lower at Rs 239.60 on the NSE against the issue price. The company’s shares saw an intra-day high of Rs 254.80 and a low of Rs 236.45 on the NSE. This is on a day when the broader market recorded healthy gains with the benchmark S&P CNX Nifty Index ending the day 0.79% higher, up by 81.15 points, at 10,333.25. Stocks of prominent players in the healthcare sector ended mixed. While Apollo Hospitals ended the day with a loss of 0.84%, Fortis Hospitals ended up 1.7% and Narayana Hrudayalaya sank 4.25%. The healthcare index on BSE ended with a gain of 0.42%, which was less than the gains in the broader market. This indicated a general underperformance of healthcare stocks. Even then, Shalby’s performance on listing was well below par.
The initial public offering (IPO) of Shalby, which closed on December 7, was subscribed 2.82 times. The issue had received bids for 4.08 crore shares against 1.45 crore shares offered. The qualified institutional buyers (QIBs) quota was subscribed 4.47 times, HNI 0.43 times, retail individual investors 2.97 times and employees by 1.43 times. The issue consisted of a fresh issue of shares for up to Rs 480 crore and an offer for sale (OFS) of Rs 24.8 crore by Vikram Shah, chairman and managing director of Shalby Hospital. The company had set a price band of Rs 245 to Rs 248 per share for its IPO. The company will utilise the net proceeds of the fresh issue towards scheduled repayment of debt worth Rs 320 crore and for general corporate purposes.
Shably’s net revenue in financial year 2017 was Rs 325.38 crore against Rs 290.4 crore during the same period in the previous financial year. Shalby Hospital has a network of 11 operational hospitals with an aggregate bed capacity of 2,012. It also has overseas presence through clinics in Africa and the Middle East.