Gujarat Kidney And Super Speciality IPO GMP Falls As Issue Enters Day 2, Check Subscription Status

Gujarat Kidney and Super Speciality's initial public offering (IPO) entered its second day of bidding on December 23. Investors have until December 24 to bid for the issue.

Gujarat Kidney IPO has so far garnered decent demand from investors across categories. Meanwhile, its grey market premium (GMP) in the unlisted space has dropped.

A day ahead of the opening of the subscription window, the multi-speciality healthcare services provider raised around Rs 100 crore from institutional investors during the anchor round. Craft Emerging Market Fund PCC was the biggest anchor investor, acquiring 35 per cent of the total anchor allocation for an investment of Rs 35 crore through its Citadel Capital Fund and 10 per cent for an investment of Rs 10 crore through its Elite Capital Fund.

Gujarat Kidney IPO Subscription Status: Day 2

Gujarat Kidney IPO garnered an overall subscription of 2.41 times by 2:45 pm on Day 2, as per exchange data.

The qualified institutional buyers (QIBs), excluding anchor investors, who have 35 per cent of the issue earmarked for them, had subscribed 34 per cent, or 0.34 times their reserved portion. The non-institutional investors (NIIs), who are being offered 15 per cent of the issue, subscribed 2.37 times, while the retail investors’ segment, with a 10 per cent allocation, was booked 7.85 times.

Gujarat Kidney IPO Details: Issue Size, Price Band, Allotment, Listing Dates

Gujarat Kidney seeks to raise Rs 250.80 crore through public listing. The issue comprises entirely of 22 million fresh equity shares. The company has fixed the price band at Rs 108-114 per share. Retail investors are required to apply in a lot size of 128 shares, requiring a minimum investment amount of Rs 14,592, based on the upper end of the price band.

Post the closure of the subscription window, its shares are expected to be allotted on December 26, and list on both the NSE and the BSE tentatively on December 30.

The public issue is being managed by Nirbhay Capital Services, and MUFG Intime India is acting as the registrar.

Gujarat Kidney IPO Objectives

Gujarat Kidney & Super Speciality plans to use the net proceeds from its IPO primarily to expand its hospital footprint and strengthen its clinical capabilities. According to its red herring prospectus (RHP), the company will allocate Rs 77 crore from the proceeds for the proposed acquisition of Parekhs Hospital in Ahmedabad, which is expected to enhance the company’s presence in a key healthcare market. The company will also allocate Rs 12.4 crore towards part-payment of the purchase consideration for Ashwini Medical Centre, which it has already acquired.

To support organic expansion, Gujarat Kidney will invest Rs 30.1 crore in capital expenditure for setting up a new hospital in Vadodara. In addition, the company will portion out Rs 6.83 crore for buying robotic equipment at its main facility in Vadodara.

The company also plans to use Rs 1.2 crore to repay or prepay certain outstanding secured borrowings. Further, the multi-speciality healthcare company will keep Rs 10.78 crore aside for acquiring additional shareholding in its subsidiary, Harmony Medicare Private Limited, located in Bharuch.

The remaining proceeds will be directed towards funding inorganic growth through unidentified acquisitions and meeting general corporate purposes.

Gujarat Kidney IPO GMP Today

Gujarat Kidney IPO's GMP dropped 50 per cent to Rs 3.5 per share over the issue price, from a day earlier premium of Rs 7, as of 11:59 am on December 23.

Based on the current GMP and the upper end of the price band, the expected listing price of Gujarat Kidney IPO's shares comes at Rs 117.50 apiece. This represents a listing gain prospect of 3.07 per cent.

Gujarat Kidney: Company Profile

Gujarat Kidney and Super Speciality Ltd, established in 2019, is a multi-speciality healthcare services provider. The healthcare company has its presence in multiple locations across Gujarat. It operates seven multi-speciality hospitals and four pharmacies with a total bed capacity of 490 beds.

The company provides medical care in areas such as internal medicine, general surgery, minimally invasive procedures, orthopaedics and trauma treatment, joint replacement surgery, obstetrics and gynaecology, respiratory failure, non-interventional cardiology, diabetology, and anaesthesiology, according to its red herring prospectus (RHP).