The initial public offering (IPO) of GPT Healthcare was oversubscribed on the final day of bidding on Monday.
A strong push from qualified institutional investors (QIBs) and non-institutional investors (NIIs) helped the IPO gain momentum on the final day.
As of 5 pm, the GPT Healthcare IPO was subscribed 8.52 times, with QIBs subscribing 17.30 times their quota, while NII portion was subscribed over 11 times.
While the demand among retail investors was weak at just 2.44 times subscription, it marked an improvement compared to the past couple of days.
On the final day of subscription, the unlisted shares of GPT Healthcare traded at a premium of Rs 9 on the grey market. If the stock lists at the current GMP, it would lead to a listing gain of less than 5 per cent.
GPT Healthcare IPO key details
GPT Healthcare Ltd, also known as ILS Hospitals, is a prominent player in the regional healthcare landscape, primarily focusing on secondary and tertiary care services.
With a network of four multispecialty hospitals spread across West Bengal and Tripura, the company offers a comprehensive range of healthcare solutions spanning over 35 specialties and super specialties.
Valued at Rs 525.14 crore, the IPO comprises a mix of fresh issue of nearly 22 lakh shares totalling Rs 40 crore and an offer-for-sale (OFS) of 2.61 crore shares amounting to Rs 485.14 crore.
The likely date for the IPO’s share allotment is February 27, with the company’s shares tentatively set to debut on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on February 29.
Priced in the range of Rs 177 to Rs 186 per share, the GPT Healthcare IPO requires a minimum investment of Rs 14,880 for retail investors.
Institutional investors are required to invest in a minimum lot size of 14 lots (1,120 shares), totaling Rs 208,320, while non-institutional investors need to consider investing in 68 lots (5,440 shares), equivalent to Rs 1,011,840.
Despite its extensive service offerings and regional stronghold, the IPO’s subscription rates reflect a cautious investor sentiment.
Anand Rathi has endorsed a “Subscribe – Long Term” rating to the IPO, citing the company’s plans to fortify its existing hospitals and broaden its service spectrum.
Meanwhile, Mehta Equities’ IPO note underscores the company’s potential to venture into adjacent markets with asset-light business models, such as Ranchi.
However, the brokerage advised investors to weigh their options carefully, considering the IPO’s structure, which solely comprises an Offer For Sale (OFS), raising concerns for new investors.
Mehta Equities suggests that only high-risk investors should consider subscribing to the IPO for the long term, while conservative investors may opt to observe the stock’s performance post-listing.