Park Medi World IPO Subscribed 52% on Day 1

New Delhi, Dec 10 (PTI) The initial public offering (IPO) of Park Medi World, which operates a hospital chain under the Park brand, received 52 per cent subscription on the first day of share sale on Wednesday.

The Rs 920-crore IPO received bids for 2,19,00,048 shares against 4,18,18,182 shares on offer, according to the NSE data.

The quota for non-institutional investors subscribed 66 per cent, while the portion for retail individual investors (RIIs) received 61 per cent subscription. The part for qualified institutional buyers (QIBs) was subscribed 27 per cent.

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 (OFS) 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 will be allocated for funding capital expenditure related to 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.

The hospital chain will make its stock market debut on December 17.

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.