Shalby Hospitals Ltd’s IPO (initial public offering) which opened for subscription on Tuesday, 5 December got oversubscribed 2.6972 on the last day of bidding on Thursday. Shalby Hospitals’ Rs 540 crore public offer received a massive response from QIBs (Qualified Institutional Buyers) followed by the retail investors. Shalby Hospitals IPO saw total bids to the tune of 3,94,03,740 shares as against 1,45,21,686 shares on offer. The quota received for QIBs got subscribed 4.3388 times, the shares allocated for the NIIs (non-institutional investors) category was subscribed 0.4213 times and the portion set aside for retail investors got subscribed 2.7763 times. The issue also saw considerable demand from employees, as they bid for a total of 1.4209 times of the shares available to them.
Shalby Hospitals’ had estimated to raise about Rs 504.80 Crore in the three-day bidding process from 5-7 December. The leading multi-speciality chain of hospitals in India has fixed a price band of Rs 245-248 per equity share. The company expects to raise Rs 480 crore from a fresh issue of equity shares, while its promoter Vikram Shah has put an offer for sale up to 1,000,000 equity shares. The Ahmedabad-based multi-speciality hospital chain had on Monday raised Rs. 150.54 crore by allotting 60.7 lakh equity shares at ₹248 a share to anchor investors. Investors can bid for a minimum of 60 shares, and in lots of 60 shares thereafter.
The proceeds from the fresh issue of the IPO will be utilised towards repayment of borrowings availed by the company besides purchasing medical equipment for existing, recently set-up as well as upcoming hospitals, the company said. Having performed approximately 50,175 joint replacements since 2007, Shalby Hospitals has been a market leader in the area of joint replacement surgeries, says Axis Capital, adding that it has an integrated and scalable business model enabling them to provide comprehensive healthcare solutions through a network of multi-speciality hospitals.
The Ahmedabad based hospital chain Shalby Hospitals has already raised Rs 150 crore from anchor investors a day before its IPO. The company has decided to allocate about 60.7 lakh shares at the upper end of the price band to the anchor investors including Goldman Sachs, Citigroup, Reliance Nippon Life Insurance Company, Nomura and SBI Life Insurance Company.