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.

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