Robust Listing: This Main Board Firm Launches On Exchanges At A 16% Increase Above IPO Price

Healthcare made a spectacular entry on the public market on February 29, listing at a 16% premium to the IPO price. This result exceeded experts’ estimates of a 5% premium, suggesting that the healthcare firm is receiving positive market feedback.

GPT Healthcare’s shares opened at Rs 215 per share on the NSE and Rs 216.15 per share on the BSE during the much anticipated initial public offering (IPO), which is substantially more than the issue price of Rs 186 per share. An early windfall is already being enjoyed by investors who were able to purchase shares at the IPO.

The company was trading on the grey market, an unauthorized venue where shares are exchanged prior to the IPO allotment and until the listing day, at a premium of 9% before making its debut. Many investors used the Grey Market Premium (GMP) as a gauge to get an idea of the possible listing price.

The public offering of GPT Healthcare, which garnered Rs 525.14 crore, saw 8.5 subscriptions between February 22 and 26. Retail and non-institutional investors subscribed 2.4 and 11 times, respectively, while qualified institutional investors demonstrated great interest by subscribing 17.3 times the reserved amount.

The firm successfully collected money via the new issuance of 21.5 lakh shares worth Rs 40 crore and an offer-for-sale of 2.6 crore shares valued at Rs 485.14 crore. The price range for the IPO was established at Rs 177-186 per share. The net revenues from the IPO will be used for general company purposes, with a portion going toward the prepayment or repayment of certain existing borrowings.

As the book-running lead manager and registrar for the GPT Healthcare IPO, JM Financial was essential. The registrar was Link Intime India Private. GPT Sons, Dwarika Prasad Tantia, Om Tantia, and Shree Gopal Tantia are among the company’s promoters.

In terms of bed capacity and number of hospitals, GPT Healthcare, which is well-known for its brand ILS Hospitals, is in a significant position among regional corporate healthcare corporations in Eastern India. With an emphasis on secondary and tertiary care, the organization specializes in offering integrated healthcare services.

Given the 8.52 times subscription rate, stock market experts expected the GPT Healthcare IPO to list well. Even though retail and High Net Worth Individual (HNI) investor engagement was comparatively smaller, experts anticipated that the IPO will list favorably, with a projected range of Rs 185 to Rs 195 per share.

On the day of listing, the Grey Market Premium (GMP) was Rs 18, up Rs 4 from the GMP of Rs 14 the day before. The market may have anticipated the GPT Healthcare IPO listing price to be about Rs 204 (Rs 186 + Rs 18), which would have represented a 10% premium above the IPO pricing range of Rs 177 to Rs 186 per equity share, based on the spike in the GMP. It is expected that investors who obtained allotments in the IPO would see a significant listing gain.