global health listing price: Global Health: Should you expect any fireworks at listing tomorrow?
If one goes by the premium in the unofficial market, shares of Global Health were exchanging hands in the range of Rs 30-35 apiece, translating into a 10% listing pop for investors over the issue price of Rs 336.
Global Health is one of the largest private multi-speciality tertiary care providers operating in North and East India. It has a network of five hospitals under ‘Medanta’ brand in Gurugram, Indore, Ranchi, Patna and Lucknow.
Dealers tracking the grey market said the lower-than-expected response to the issue dented sentiments for the company and one should not expect any fireworks at listing.
Abhay Doshi, co-founder, UnlistedArena said, “Despite a strong brand name like ‘Medanta’, the issue was not heavily subscribed but recently-listed healthcare stocks have performed well. So, one can expect a reasonable listing for the issue.”
Nyati, Founder at Tradingo said a mute listing is expected because not much was left for investors on the table in terms of valuations, the issue saw standard subscription numbers and a major chunk of IPO was an OFS.
The company’s Rs 2,206-crore IPO was sold in the range of Rs 319-336 per share, and received a mildly positive investor response, garnering over 9.5 times bids between November 3-7.
The quota reserved for qualified institutional buyers (QIBs) was subscribed 28.64 times while the one reserved for non-institutional investors (NIIs) and retailers was subscribed 4.02 times and 88%, respectively.
Arijit Malakar, Head of Research – Retail, Ashika Group said Global Health is a fundamentally good company as it is one of the largest private multi-speciality tertiary care providers, operating in the North and East regions of India.
“Operating parameters are strong with average revenue per occupied bed being the highest among peers and its IPO was also valued reasonably,” he added.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
