People move through the corridor of a patient ward (Photographer: Prashanth Vishwanathan/Bloomberg)

Shalby Hospitals IPO Subscribed 20% On The First Day Of Bidding

The initial public offer of Shalby Hospitals Ltd., the Ahmedabad-based multi-specialty chain, was subscribed 20 percent on the first day of the three-day bidding today.

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, indicating a subscription of 20 percent, data available with National Stock Exchange showed.

The initial share sale of Shalby will be open for public subscriptions till Dec. 7.

Yesterday, the company raised over Rs 150 crore from 11 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.