On final day, Narayana Hrudayalaya IPO subscribed 8.5 times on QIB support

By: | Updated: December 22, 2015 3:14 AM

The initial public offering (IPO) of Narayana Hrudayalaya was oversubscribed on the final day of the three-day public offering.

The initial public offering (IPO) of Narayana Hrudayalaya was oversubscribed on  the final day of the three-day public offering. At 5 pm, the initial share sale of Narayana Hrudayalaya was subscribed 8.54 times, stock exchanges data showed.  Based on the lower price band of R245 per share, the company will raise at least R605 crore from the issue.

The over subscription was largely because of bids received in the qualified institutional buyers (QIBs) category. QIBs bid for close to 12 crore shares against 49.04 lakh shares reserved. The QIB book was subscribed nearly 25 times.
The non-institutional category was subscribed 3.62 times. Non-institutional investors consisting of high net worth individuals bid for 1.33 crore shares against 36.78 lakh reserved for the category.

Response from retail investors was slightly warm as the retail book was subscribed 1.5 times. Retail investors, whose investment should not exceed a total R2 lakh as per Sebi rules, bid for 13.46 crore shares as against 85.83 lakh on offer.


The comapny had raised R183.93 crore in a pre-IPO allotment of shares to anchor investors. Fifteen institutions including the government of Singapore, Morgan Stanley Sicav Mauritius, Nomura India Stock Mother Fund and SBI Pharma Fund were allotted shares in the placement. The allotment was done at a price of R250 apiece, which was the upper price band of the issue. The issue is completely an OFS and PE investors JP Morgan and Pinebridge Investments, which held 10.91% and 11.2%, respectively, in Narayana Hrudayalaya, are looking to dilute 4% each of their holding.

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