India: Narayana Hrudayalaya scrip clocks robust 35% gains on listing debut

Visual from Narayana Hrudayalaya

Shares of Narayana Hrudayalaya Ltd jumped 35% from their issue price on the healthcare chain’s trading debut on Wednesday, after an initial public offering (IPO) that was subscribed over eight times.

The stock, sold at Rs.250 per share, opened at Rs.291 and touched a high of Rs.344.20 in intra-day trade.

The scrip closed at Rs.336.70 on the BSE, up 34.68% from its issue price, while the benchmark Sensex fell 0.68% to close at 25,406.33 points.

Last month, the company saw the institutional investor portion of its IPO subscribed 24.42 times the amount allotted. The high-net-worth individuals and retail investors categories saw subscriptions of 3.61 times and 1.72 times, respectively. The firm had fixed a price band of Rs.240-250 per share for its IPO.

The firm raised Rs.613 crore through its IPO, which closed on 21 December. The IPO was an offer for sale, with existing investors selling part of their stakes.

JP Morgan and Pinebridge Investments, which hold 10.91% and 11.2%, respectively, in Narayana Hrudayalaya, sold 4% each of their holding. UK’s development finance institution CDC is also an investor in Narayana Hrudayalaya and holds a 5.88% stake.

In 2014-15, Narayana Hrudayalaya reported consolidated revenue of Rs.1,371.5 crore compared with Rs.1,117.5 in the previous year. The company reported a loss of Rs.10.8 crore in 2014-15 compared with a profit of Rs.31.7 crore an year ago.

Last month saw the successful listings of healthcare firms Dr Lal Pathlabs Ltd and Alkem Laboratories Ltd, shares of which listed on the exchanges with gains of 49.84% and 31.56%, respectively. Dr Lal Pathlabs raised Rs.632 crore through its IPO, while Alkem Laboratories Ltd raised Rs.1,350 crore.

More healthcare firms are planning initial share sales. These include oncology firm Healthcare Global Enterprises Ltd, hospital chain Aster DM Healthcare and diagnostics firm Thyrocare Technologies Ltd.

In 2015, 21 firms raised almost Rs.13,600 crore through the IPO route.

This article was first published on Livemint.com

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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.