The IPO (initial public offering) of Shalby Hospitals opened on Tuesday for the subscription. 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. The multispecialty hospital chain Shalby Hospitals is expected to raise about Rs 504.8 crore through the public offer beginning today. The IPO starting today will remain open until 7 December. The company 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 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. “We aim to be one of the leading healthcare service providers in India by expanding the network of hospitals owned and operated through greenfield and brownfield projects, strategic acquisitions and operation and management (O&M) arrangements,” Shalby Hospitals Chairman and Managing Vikram Shah 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. Among the healthcare services firms like Alkem Laboratories, Dr Lal Pathlabs, Narayana Hrudayalaya, Thyrocare and Eris Lifesciences were the recent ones who have entered the stock markets through the IPO route.
In 2017, the IPOs has received a decent response from almost all the investor classes, as about RS 65,000 had already been raised through the public offers so far. The big five IPOs were from the insurance companies which includes SBI Life Insurance, HDFC Standard Life Insurance, ICICI Lombard General Insurance, General Insurance Corporation, The New India Assurance. Collectively, these five IPOs alone account for about Rs 43,800 crore out of Rs 65,000 crore.