Shalby IPO fully subscribed; issue closes today
, ETMarkets.com|
Updated: Dec 07, 2017, 11.51 AM IST
NEW DELHI: The initial public offer (IPO) by Shalby was subscribed fully on Day 3 of the bidding process.
By 11.15 am, the issue had received bids for 1,55,17,380 shares or 1.08 times the total issue size of 1,45,21,686 shares, data compiled from NSE and BSE websites showed. The quota for qualified institutional buyers (QIBs) was subscribed 1.97 times, retail individual investors (RIIs) 1.07 times and non-institutional investors (NIIs) 0.02 per cent. The eligible employees of the company bade for 0.73 times their quota limit.
The issue had received 20 per cent subscription by the end of Day 1 and 46 per cent by Day 2. The price band for the issue is fixed at Rs 245 to Rs 248 per equity share.
The Vikram Shah-led company earlier this week allotted 60 lakh shares to its anchor investors including Goldman Sachs, Citigroup and Axis Mutual Fund for Rs 150 crore.
The issue is priced at 42.8 times Shalby's FY17 earnings and 41.1 times its EV/Ebitda at the higher limit of the price band. The valuations are at a discount to its peers Apollo Hospitals - 67.7 times, Narayana Hrudayalaya 72 per cent and Healthcare Global - 118.4 times.
"At this valuation, the issue is attractively priced compared to a close peer Narayana Hrudayalaya which is trading at 72 times P/E and 27.1 times EV/Ebitda. Shalby's RoE of 26.6 per cent is better compared to peers' average of 11.8 per cent for FY17. Considering robust growth, high return ratios, strong balance sheet and future prospects, investors can be advised to subscribe to the issue," Centrum Broking said in a note.
The operator of chain of multi-specialty hospitals has delivered strong return ratios over last few years but the debt level for the company has risen quite a bit. The total debt stood at Rs 328 crore as of March 31.
"We have never been making losses across all 23 years. I do not think anybody else could have achieved that. You have to be very efficient while planning your capex and those are the things which we do. We are in a position to create a bed for Rs 45 lakh, if we own everything which is the land, building and the equipment. If you look at the others, probably it is 75-80 lakhs per bed. We have been able to do this because we are very mindful of the fact that this is a capital-intensive industry and until unless we have our right controls on the capex, we will not be able to turnaround the hospitals in the right time," Ravi Bhandari, CEO at Shalby told ET Now.
By 11.15 am, the issue had received bids for 1,55,17,380 shares or 1.08 times the total issue size of 1,45,21,686 shares, data compiled from NSE and BSE websites showed. The quota for qualified institutional buyers (QIBs) was subscribed 1.97 times, retail individual investors (RIIs) 1.07 times and non-institutional investors (NIIs) 0.02 per cent. The eligible employees of the company bade for 0.73 times their quota limit.
The issue had received 20 per cent subscription by the end of Day 1 and 46 per cent by Day 2. The price band for the issue is fixed at Rs 245 to Rs 248 per equity share.
The Vikram Shah-led company earlier this week allotted 60 lakh shares to its anchor investors including Goldman Sachs, Citigroup and Axis Mutual Fund for Rs 150 crore.
The issue is priced at 42.8 times Shalby's FY17 earnings and 41.1 times its EV/Ebitda at the higher limit of the price band. The valuations are at a discount to its peers Apollo Hospitals - 67.7 times, Narayana Hrudayalaya 72 per cent and Healthcare Global - 118.4 times.
"At this valuation, the issue is attractively priced compared to a close peer Narayana Hrudayalaya which is trading at 72 times P/E and 27.1 times EV/Ebitda. Shalby's RoE of 26.6 per cent is better compared to peers' average of 11.8 per cent for FY17. Considering robust growth, high return ratios, strong balance sheet and future prospects, investors can be advised to subscribe to the issue," Centrum Broking said in a note.
The operator of chain of multi-specialty hospitals has delivered strong return ratios over last few years but the debt level for the company has risen quite a bit. The total debt stood at Rs 328 crore as of March 31.
"We have never been making losses across all 23 years. I do not think anybody else could have achieved that. You have to be very efficient while planning your capex and those are the things which we do. We are in a position to create a bed for Rs 45 lakh, if we own everything which is the land, building and the equipment. If you look at the others, probably it is 75-80 lakhs per bed. We have been able to do this because we are very mindful of the fact that this is a capital-intensive industry and until unless we have our right controls on the capex, we will not be able to turnaround the hospitals in the right time," Ravi Bhandari, CEO at Shalby told ET Now.
