GPT Healthcare IPO subscribed 8.52 times on final day

The initial public offering of GPT Healthcare, the Eastern India-focussed mid-sized multi-specialty hospital chain, has seen a healthy response from investors, subscribing 8.52 times on February 26, the final day of bidding.

Investors have bought 16.84 crore equity shares, against the IPO size of 1.97 crore equity shares which excluded the anchor book portion.

Qualified institutional investors picked 17.30 times the allotted quota, non-institutional investors bought 11.02 times the reserved portion, while the part set aside for retail investors was subscribed 2.44 times.

The Eastern India-based hospital brand ILS operator aims to raise Rs 525.14 crore through its public issue at the upper price band. The IPO is a mix of a fresh issue of Rs 40 crore worth of shares, and an offer-for-sale (OFS) of 2.6 crore equity shares worth Rs 485.14 crore by private equity fund BanyanTree Growth Capital II, LLC.

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BanyanTree Growth Capital will be exiting the company post issue, with a profit of around Rs 476 crore, as the weighted average cost of acquisition of 2.6 crore equity shares was Rs 15.34 per share, amounting to Rs 9.33 crore.

The price band for the issue, which was opened on February 22, was Rs 177-186 per share.

The Kolkata-based healthcare services provider will be using Rs 30 crore of the net issue proceeds for repaying debt, and the remaining for general corporate purposes. The outstanding debt on its books at the end of December 2023 was Rs 46.3 crore.

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GPT Healthcare will finalise the basis of the allotment of IPO shares by February 27 and credit the equity shares to demat accounts of successful investors by February 28.

The trading in its equity shares will commence on the BSE and NSE with effect from February 29.

GPT equity shares traded at a 5 percent premium over the upper price band, in the grey market, an unofficial platform wherein IPO shares can be bought and sold till the listing, the market observers said.

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