India: HealthCare Global IPO subscribed 1.56 times

The initial share sale of HealthCare Global Enterprises Ltd (HCG), which runs a chain of cancer-care centres, managed to sail through on the third and final day with majority of the shares bid by institutional investors, while share applications by non-institutional as well as retail investors fell short of the quota reserved for them.

The public offering, excluding the anchor allotment, was subscribed 1.56 times as on 7.30pm on Friday, stock exchange data showed.

The completion of the issue means HCG will raise close to Rs.650 crore by offering 29.8 million shares to investors.

The institutional investor category was subscribed 236%, or 2.36 times, while the non-institutional category comprising high net-worth individuals drew just 43% bids of the shares reserved for the category.

Retail individual investors, whose investments cannot exceed the cap of Rs.2 lakh in an initial public offering (IPO), applied for 83% of the shares on offer, data showed.

Merchant bankers advising the company on the IPO said they were enthused with the investors’ response in volatile secondary market conditions.

“The IPO has been successful despite tough market conditions. The issue attracted some long-term and high quality investors, and assures there is interest in the healthcare sector. We believe it will prove good value to long-term investors,” said Vikas Khemani, CEO, wholesale capital markets, Edelweiss Financial Services Ltd.

The public issue had attracted 54%, or 0.54 times, of the bids at the end of day two (Thursday), while it had garnered close to 21%, or 0.21 times, of the bids on day one, data showed.

The subscription levels of HCG are lower than those received by recent healthcare IPOs of Syngene International Ltd (32 times), Dr. Lal PathLabs Ltd (33 times), Alkem Laboratories Ltd (44 times), and Narayana Hrudayalaya Ltd (8.7 times), exchange data showed.

The benchmark Sensex has gained 1.2% since 8 March when HCG announced the launch of its IPO, Bloomberg data showed.

“The issue received a fair amount of participation from all categories of investors,” said another investment banker who did not wish to be named as he was bound by compliance norms.

On Tuesday, the Bengaluru-based company raised Rs.292.33 crore through anchor investor allotment or anchor book, the company said in a stock exchange filing.

As part of the share sale, HCG sold 13.41 million shares to 13 institutional investors at Rs.218 per share, the upper end of the Rs.205-218 price band for its three-day IPO, as per the filing.

Subscribers to the anchor book include International Finance Corporation, Spring Healthcare India Trust, HDFC Standard Life Insurance Co. Ltd, Sabre Partners Trust, BNP Paribas Trust Services Singapore Ltd as trustee of Nikko AM Asia Health Care Fund, Citigroup Global Markets Mauritius Pvt. Ltd, Chennai 2007 C/O Harvard Management Co. Inc, Neptune Investment Funds and five others.

The anchor book is that portion of the IPO which bankers allot to institutional investors on a discretionary basis. Anchor-book subscription opens a day before the IPO launch and is an indicator of institutional investor interest.

The oncology chain will use the IPO proceeds to buy medical equipment, invest in information technology software, services and hardware, pre-payment of debt and general corporate purposes.

Also read:

India: Oncology chain Healthcare Global IPO to open March 16

India: How Ameera Shah took control of Metropolis Healthcare

India: Healthcare focussed PE fund Quadria to pick 20% in Concord Biotech

India: Teamlease, HCG Global & SSIPL Retail IPO’s to test investor appetite

This story was first published on livemint.com

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.