Global Health shares will be listed on NSE, BSE tomorrow: The public offering of Global Health Ltd is expected to be listed on Wednesday, November 16. Ahead of the market debut, shares of Medanta operator Global Health are available at a premium of Rs 20 (GMP) on the gray market, IPO Watch revealed. The price range for the Global Health IPO has been set at Rs 319 to 336. This means that the shares are expected to get a quote of somewhere around Rs 356 upon debut.
Global Health received bids for the IPO of 4.67 crore shares more than 9 times. Of the total, nearly 50 percent of the shares were reserved for qualified institutional buyers (QIBs), 15 percent for non-institutional investors, and 35 percent for retail investors. The lot size for the IPO was 44 shares, equating to Rs 14,784 on the upper band. A private investor was allowed to bid for up to 13 lots worth Rs 1,92,192.
With the closing of the allotment on November 11, crediting of the stock began on Monday and now listing is scheduled for tomorrow.
The company aims to raise approximately Rs 2,206 crore with the issue. This includes a new issue of Rs 500 worth Rs 500 crore and an offer for sale (OFS) of nearly 5.08 crore shares of the promoters. Proceeds from the public offering will be used to service debt and for the usual purpose of the company.
Prior to the public offering, Global Health had raised Rs 662 crore from anchor investors in exchange for 1.97 crore shares at Rs 336 each. Major investors included the Government of Singapore, Nomura, Axis Mutual Fund (MF), HDFC MF, Aditya Birla Sun Life MF, SBI MF, ICICI Prudential MF, Kotak MF, Max Life Insurance Company and SBI Life Insurance Company.
Global Health Limited is the company behind the operations of one of the largest multi-specialty private hospital chains, Medanta, founded by renowned cardiovascular surgeon Dr. Naresh Trehan.
It owns six hospitals under the Medanta brand and employs more than 1,300 doctors.
What do analysts say?
Parth Nyati, founder of Tradingo, said: “GHL is one of the largest private multi-specialty tertiary care providers. operating in the North and East regions of India and operating under the most popular healthcare brand, Medanta. The publisher has good patient volumes and cost efficiency, and its financial profile is also on an upward trend. Nevertheless, the promoter’s shareholding would fall to 33 percent after the IPO. Finally, the issue is reasonably priced with a P/E of 43 compared to the industry average P/E of 51.93. A quiet listing will be expected as there was a lot off the table for the investor in terms of valuation, less than standard subscription numbers, and the nature of most of this issue is OFS; the current GMP is Rs 20 about 6 per cent above the issue price. As a result, we were only allocated to long-term investors.”
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