The initial public offer of Shalby Ltd, was subscribed 46 percent on the second day of the three-day bidding on Tuesday, the NSE data shows.
The IPO, which aims to raise Rs. 504 crore, received bids for over 66 lakh shares as against the total issue size of 1.45 crore -- a subscription of 46 percent -- data available with the National Stock Exchange (NSE) showed. The initial share sale of Shalby will be open for public subscriptions till December 7.
Shalby, on Monday, raised over Rs. 150 crore from anchor investors.
The IPO comprises a fresh issue of equity shares aggregating up to Rs. 480 crore and an offer for sale of up to 10 lakh equity shares by the selling shareholder. The price band has been fixed at Rs. 245-248 per share. At the upper end, the public issue would fetch Rs. 504 crore. Proceeds 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.
In the recent months, healthcare services firms Alkem Laboratories, Dr Lal Pathlabs, Narayana Hrudayalaya, Thyrocare and Eris Lifesciences have tapped the primary market through IPO route.
Ten things to know about the Shalby IPO
1. The Shalby IPO opened on December 5 and will end on December 7, 2017.
2. The shares will be issued in the price band of Rs. 245 and Rs. 248 for shares with a face value of Rs. 10.
3. The P/E ratio (price in the upper band of Rs. 248) is 42.8 of company's earnings in the fiscal 2017 and 71.3 and 104.1 of the earnings of fiscal 2016 and 2015, respectively, says Reliance Securities.
4. The company's strengths include leadership in orthopedics, and company's good track record of healthy operating and financial performance, Reliance Securities says in an IPO note.
5. The major risks for Shalby Healthcare are too much dependency on two hospitals SG Shalby and Krishna Shalby, and on orthopedic for a substantial portion of revenue.
6. The company runs 11 hospitals with an aggregate bed capacity of 2,012 beds.
7. The IPO, which aims to raise Rs. 504 crore, received bids for over 29.32 lakh shares against the total issue size of more than 1.45 crore scrips.
8. Proceeds of the IPO will be utilized towards repayment of borrowings availed by the company besides purchasing medical equipment for existing, recently set-up as well as upcoming hospitals.
9. Another risk that the company faces is that revenue is primarily derived from inpatient treatments, which could decline due to multiple factors.
10. The company's sales grew by a strong 12 percent YoY in fiscal 2017 from 5 percent in the fiscal 2016. Its operating income and net profit grew by 30 percent year on year and 60 percent year on year in fiscal 2017. – NDTV