Metropolis Healthcare IPO subscribed 8% on Day 1 so far

NEW DELHI: Metropolis Healthcare's Rs 1,204-crore initial public offer (IPO) was subscribed 8 per cent on the first day of the issue on Wednesday.

The issue saw bids for 6,68,593 shares till 4.25 pm against the total issue size of 76,61,802 units.

The company is looking to sell 13,685,095 shares. Of these, promoter Sushil Shah will sell 6,272,335 shares, while investor CA Lotus Investments, a subsidiary of U.S.-based private equity firm Carlyle Group will offload 7,412,760 shares.

The price band has been fixed in the range of Rs 877-880 per share.

Brokerages are recommending investors to subscribe for Metropolis' IPO from a long-term perspective, on the back of strong growth prospects and fair valuations.

“Metropolis Healthcare has a long runway for growth in our opinion owing to its young network and consolidation opportunities in the Industry,” IIFL Securities analyst Milan Desai said in a note.

Centrum Wealth Research too, recommended investors to subscribe to the IPO with a long-term view, saying the issue was fairly priced at the upper end of the price band.