Gujarat Kidney IPO: The initial public offering (IPO) of multispeciality healthcare services company Gujarat Kidney & Super Speciality Ltd opened on December 22 for public subscription. Investors can bid for the offer till December 24.
Ahead of the opening of subscription window, Gujarat Kidney raised Rs 100 crore from institutional investors during the anchor round. Craft Emerging Market Fund PCC acquired the highest stake through two of its funds. Through Citadel Capital Fund, it bought 3.07 million shares, or about 35 per cent of the total anchor allocation for an investment of Rs 35 crore, and through Elite Capital Fund, it acquired 877,312 shares, or about 10 per cent of the anchor allocation for an investment of Rs 10 crore.
Other marquee investors during the anchor round were Khandelwal Finance Private Ltd and Venus Investments VCC - Venus Stellar Fund, acquiring about 15 per cent and 10 per cent of the anchor allocation, respectively.
Gujarat Kidney IPO Details
Issue Size: Gujarat Kidney & Super Speciality Ltd seeks to raise Rs 250.80 crore from the IPO, which consists entirely of a fresh issue of 2.20 crore equity shares.
Price Band, Lot Size, Minimum Investment: The price band has been set at Rs 108 to Rs 114 per share. The lot size is 128 shares, requiring a minimum investment of Rs 14,592 for retail investors, based on the upper end of the price band.
Allotment, Listing Dates: The share allotment is expected to be finalised on December 26, and the stock is scheduled to list on the NSE and BSE tentatively on December 30.
BRLMs, Registrar: Nirbhay Capital Services Pvt. Ltd. is the book-running lead manager to the issue, while MUFG Intime India Pvt. Ltd. is acting as the registrar.
Gujarat Kidney IPO GMP Today
Gujarat Kidney IPO's shares traded at a grey market premium (GMP) of Rs 7 per share over the issue price, as of 9:57 AM on December 22.
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 121 apiece. This represents a listing gain prospect of 6.14 per cent.
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 compnay will portion out Rs 6.83 crore for biuying 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 multispeciality healthcare compnay 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.
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