Gujarat Kidney IPO, Final Day: GMP Declines; Stock Headed For Flat-To-Discounted Dalal Street Debut?

The initial public offering (IPO) of Gujarat Kidney and Super Speciality Ltd. which opened for subscription on Dec. 22 will conclude its subscription process on Dec. 24. The Rs 251-crore IPO was oversubscribed 2.8 times on Tuesday.

As of 1:15 p.m. on Wednesday, the mainboard issue received bids for 5,54,99,008 shares against 1,32,26,880 shares on offer, according to the BSE data. The IPO was subscribed 4.19 times so far.

Qualified Institutional Buyers (QIBs) subscribed their category 0.60 times. Non-Institutional Investors’ (NIIs) portion witnessed a subscription of 4.69 times, while the retail quota was booked 16.10 times.

As subscription enters its final day, the GMP for the mainboard IPO has declined by over 60% since it opened for subscription. The current trends suggests that the IPO might be headed for a muted if not a flat listing when the stock debuts next week.

Here's all you need to know about the Gujarat Kidney and Super Speciality IPO including the latest grey market premium, price band, allotment and listing date,

The latest grey market premium (GMP) for the Gujarat Kidney and Super Speciality IPO was Rs 0 per share on Dec. 24. Based on the upper limit of the price band of Rs 114, the latest GMP suggests a flat listing.

Note: The GMP is unofficial and speculative in nature and should not be considered as confirmed data. GMP data sourced from InvestorGain.

The Gujarat Kidney and Super Speciality IPO is a book-built issue worth Rs 250.8 crore. The IPO consists entirely of a fresh issue of 2.2 crore equity shares. The price band for the IPO has been fixed at Rs 108 to Rs 114 per share.

The IPO lot size comprises 128 shares. Retail investors can participate in the Gujarat Kidney IPO subscription by applying for at least a single lot size, which translates to a minimum investment of Rs 14,592 per application. Small Non-Institutional Investors (NIIs) are required to apply for at least 14 lots, amounting to Rs 2,04,288. Big Non-Institutional Investors must bid for a minimum of 69 lots, involving an investment of Rs 10,06,848.

Nirbhay Capital Services Pvt. Ltd. is acting as the book-running lead manager for the IPO, while MUFG Intime India Ltd. is the issue registrar.

The company proposes to utilise the IPO funds for the acquisition of Ahmedabad-based Parekhs Hospital and capital expenditure toward setting up a new hospital in Vadodara. A portion of the IPO proceeds will also be used for repayment of debts, funding of inorganic growth and acquisition of additional shares in its subsidiary, Harmony Medicare.

Gujarat Kidney and Super Speciality Ltd., incorporated in 2019, provides multi-speciality healthcare services across multiple cities in Gujarat. It operates seven multi-speciality hospitals with a total bed capacity of 490 beds.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.

The share allotment status for the IPO is expected to be finalised on Dec. 26. Shares will be credited to the demat accounts of successful applicants on Dec. 29, while refunds to unsuccessful bidders will also be processed on the same day.

Shares of Gujarat Kidney and Super Speciality are proposed to be listed on the BSE and NSE on Dec. 30.