Narayana Hrudayalaya IPO subscribed 7% on day one

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Mumbai | Updated: December 18, 2015 10:34:44 AM

Highest number of bids during the day were received from the retail investors. The retail book was subscribed 0.13 times. A total of 11.23 lakh bids were received from retail investors against 85.83 lakh reserved for them

Narayana Hrudayalaya IPONarayana Hrudayalaya IPO:Highest number of bids during the day were received from the retail investors. (Photo: Reuters)

The initial public offering(IPO) of healthcare firm Narayana Hrudayalaya was subscribed 0.07 times on the first day of the three-day offering.

Highest number of bids during the day were received from the retail investors. The retail book was subscribed 0.13 times. A total of 11.23 lakh bids were received from retail investors against 85.83 lakh reserved for them.

Qualified institutional buyers(QIB) portion was subscribed 0.01 times as QIBs bid for 60,000 shares against little more than 49 lakh shares reserved for the portion.

The non-institutional investors comprising of high net-worth individuals(HNIs) had bid for 51,000 shares against 36.78 lakh shares reserved for the category. The HNI book was subscribed 0.01 times.

Narayana Hrudayalaya had raised R183.93 crore through anchor allotment on Wednesday.Fifteen anchor investors including Government of Singapore, Morgan Stanley Sicav Mauritius, Nomura India Stock Mother Fund and SBI Pharma Fund were allotted shares in the anchor placement, official filing on stock exchanges showed. The allotment was done at a price of Rs 250 apiece which is the upper price band of the issue.

Axis Capital, IDFC Securities and Jefferies India are the book running lead managers for the issue.

Based on the upper price band of the issue,the company plans to raise close to Rs 613 crore. The issue is completely an Offer For Sale(OFS) and private equity investors JP Morgan and Pinebridge Investments, which hold 10.91% and 11.2%, respectively, in Narayana Hrudayalaya, are looking to dilute 4% each of their holding.

Narayana Hrudayalaya was founded in 2000 by Devi Prasad Shetty and the company is one of the leading private healthcare service providers in the country.

During CY15, 20 companies have tapped primary markets to raise more than Rs 15,000 crore – the highest in four years. Alkem Laboratories and Dr Lal Pathlabs were the last two companies to hit the IPO markets. Together they raised close to Rs 2,000 crore.

The IPO is an offer for sale from existing investors and the firm will not be raising any money to invest in its business.

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