Shalby IPO subscribed 32% on Day Two

The initial public offer (IPO) of Shalby received bids for 66.41 lakh shares on the second day of the bidding for the IPO today, 6 December 2017, data on NSE showed as at 17:00 IST. The IPO was subscribed 0.32 times. The price band of the IPO has been fixed at Rs 245 to Rs 248 per share. The IPO opened for subscription on 5 December 2017. The issue closes on 7 December 2017.

Ahead of the opening of the IPO, the IPO committee of the board of directors of the company at its meeting held on 4 December 2017, finalized allocation of 60.70 lakh equity shares to 13 anchor investors at Rs 248 per share.

The offer comprises fresh issue of Rs 480 crore, which at lower price band of Rs 245 per share, works out to 195.92 lakh shares and at higher price band of Rs 248, the offer works out to 193.55 lakh shares. The offer also comprises offer for sale of 10 lakh shares, which at lower price band of Rs 245 per share, works out to Rs 24.50 crore and at higher price band of Rs 248, the issue size works out to Rs 24.80 crore. The selling shareholder comprises promoter Dr. Vikram Shah.

The objects of the issue is to spend around Rs 300 crore on repayment or prepayment of certain loans, Rs 63.58 crore on purchase of medical equipment for existing and upcoming hospitals, Rs 11.18 crore on purchase of interiors, furniture and allied infrastructure for upcoming hospitals and rest for general corporate purposes.

On a consolidated basis, the company reported net profit of Rs 14.39 crore on revenue from operations of Rs 89.23 crore in Q1 June 2017.

Shalby is one of the leading multi-specialty chain of hospitals in India. Its hospitals are tertiary care hospitals, few of which also offer quaternary healthcare services to patients in various areas of specialization such as orthopedics, complex joint replacements, cardiology, neurology, oncology, and renal transplantations.

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