Shalby Ltd shares jump nearly 3% after listing in red on stock market debut

By: | Updated: December 15, 2017 11:56 AM

Shares of Shalby Hospitals marked a mixed stock market debut on Friday. Shares of Shalby Ltd opened a little lower from the IPO price on both the bourses but quickly jumped on to trade in green.

Shalby Ltd gained as much as 2.71% to Rs 254.8 on NSE from the issue price of Rs 248 while it rose 2.68% to Rs 254.65 on BSE. (Image: Reuters)

Shares of Shalby Hospitals marked a mixed stock market debut on Friday after the company recently concluded its IPO (initial public offering) which was subscribed over 2.5 times. Shalby Hospitals has been listed as Shalby Ltd on both BSE and NSE. Shares of Shalby Ltd opened a little lower from the IPO price on both the bourses but quickly jumped on to trade in green. Shalby Ltd got listed down 3.34% at Rs 239.7 on NSE while it started 4.43% lower at Rs 237 on BSE. Shalby Ltd gained as much as 2.71% to Rs 254.8 on NSE from the issue price of Rs 248 while it rose 2.68% to Rs 254.65 on BSE.

On the listing day itself, over 75 lakh shares of Shalby Ltd exchanged hands on BSE and NSE with more than 65 lakh shares traded on NSE alone. Shalby Ltd has achieved a market capitalisation of more than Rs 2,600 crore after listing. The stock of Shalby Ltd made a low of Rs 238.8 (down 3.7%) on NSE and Rs 236.2 (down 4.75%) on BSE. The IPO of Shalby Hospitals Ltd got subscribed 2.6972 on the last day of bidding. Shalby Hospitals’ public offer received a massive response from QIBs (Qualified Institutional Buyers) followed by the retail investors.

Shalby Hospitals’ had raised about Rs 504.8 Crore in the three-day bidding process from 5-7 December. The leading multi-speciality chain of hospitals in India fixed a price band of Rs 245-248 per equity share. The company raised Rs 480 crore from a fresh issue of equity shares, while its promoter Vikram Shah sold up to to 1,000,000 equity shares via offer for sale route. The Ahmedabad-based multi-speciality hospital chain had on Monday raised Rs 150.54 crore by allotting 60.7 lakh equity shares at Rs 248 per equity share to anchor investors.

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.

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