New Delhi: The initial public offering of Park Medi World, which operates a hospital chain under the Park brand, received 98 per cent subscription on the second day of share sale on Thursday.The Rs 920-crore IPO received bids for more than 4.11 crore (4,11,32,832) equity shares against 4.18 crore (4,18,18,182) shares on offer, according to the NSE data.
The portion for Non Institutional Investors subscribed 1.38 times, while the quota for Retail Individual Investors (RIIs) received 1.19 times subscription. The part for Qualified Institutional Buyers (QIBs) was subscribed 32 per cent.The IPO of Park Medi World subscribed 52 per cent subscription on the first day of share sale on Wednesday.
Park Medi World on Tuesday said it has collected Rs 276 crore from anchor investors. The company's IPO will conclude on December 12.It has fixed a price band of Rs 154-162 per share for its IPO, valuing the hospital chain at roughly Rs 7,000 crore.The IPO is a combination of fresh issue of shares worth Rs 770 crore and an offer for sale of shares valued at Rs 150 crore by promoter Ajit Gupta.
The company plans to use proceeds worth Rs 380 crore for payment of debt, and Rs 60.5 crore for the development of a new hospital and the expansion of an existing hospital by its subsidiaries, Park Medicity (NCR) and Blue Heavens, respectively.A further Rs 27.45 crore is earmarked for the purchase of medical equipment by the company and its subsidiaries, Blue Heavens, and Ratangiri.
The remaining funds will be used for unidentified inorganic acquisitions and general corporate purposes.Its network of hospitals comprises 13 multi-super specialty hospitals with eight hospitals in Haryana, one hospital in New Delhi, three hospitals in Punjab and two hospitals in Rajasthan.Nuvama Wealth Management, CLSA India, DAM Capital Advisors and Intensive Fiscal Services are the book-running lead managers to the public issue.
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