Shares of HealthCare Global Enterprises Ltd, which runs a chain of cancer-care centers, was trading nearly 20% below the issue price on Wednesday on its first day as a public listed company.
The stock opened at Rs.209.80 and touched a high and a low of Rs.211 and Rs.175.45, respectively. At 10:06 am, it was trading at Rs.176 on the BSE, down 19.7% from its offer price. India’s benchmark Sensex index rose 0.73% or 182.79 points to 25,083.25.
The initial public offering (IPO), which closed on 18 March, was subscribed 1.56 times, according to data available on stock exchanges.
The company priced the offer in the band of Rs.205-218 per equity share, and the issue price was fixed at Rs.218. The company raised Rs.650 crore by offering 29.8 million shares to investors.
HCG raised Rs.292.33 crore through issue of shares to 13 anchor investors in a pre-IPO allotment that drew interest from investors like International Finance Corp., 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 company will use IPO proceeds to buy medical equipment, invest in information technology software, services and hardware, pre-payment of debt and general corporate purposes.