Shares of Narayana Hrudayalaya rose 38% in its debut, valuing the hospital chain operator at $1 billion (Rs 6,881 crore), and boosting the outlook for public offerings this year.
Advertisement
The equity shares of the company opened at Rs 291 and touched a high of Rs 344, before closing the day at Rs 336.70 on the BSE. Dr Shetty is regarded as one of the pioneers of low-priced quality medical care in India.
Narayana’s strong debut follows stellar listings by drug maker Alkem Laboratories and diagnostic chain Dr Lal PathLabs last month. The IPO included an offer of sale of up to 2.45 crore equity shares from promoters and other existing shareholders, representing 14.04 per cent stake in the company. Through this network, National Hockey League operates 5,442 beds and has a potential to scale that up to 6,602 beds.
The uptrend at the counter assumes significance as the broader market settled in the negative zone at 25,406.33, down 174.01 points. The company is now in the process of commissioning a dedicated paediatric hospital in Mumbai and a multispecialty hospital at Lucknow in Uttar Pradesh.
According to brokerage firm Angel Broking, hospital businesses have a long gestation period before they mature and hence may operate at a loss for a lengthy period of time before achieving profitability. Several Indian companies are seeking to raise money via share sales to fund their expansion, signaling a revival in investor confidence in Asia’s third-largest economy.
Most of the demand for the IPO came from foreign institutional investors (FIIs) while the portion reserved for qualified institutional buyers (QIBs) was oversubscribed 24.23 times.
Advertisement
In 2014-15, Narayana Hrudayalaya reported consolidated revenue of Rs.1,371.5 crore compared with Rs.1,117.5 in the previous year.
