Shalby IPO opens today, Rs150 crore raised from anchor investors
Mumbai: Shalby Ltd, which runs a multi-speciality hospital chain, on Monday said it has raised approximately Rs150 crore by selling shares to institutional investors as part of its anchor book allocation, a day before its initial public offering (IPO) opens.
Shares were allocated to 13 investors at Rs248 apiece, the upper end of the price band of Rs245-248 for the Shalby IPO. Institutional investors that participated in the anchor book allocation include Goldman Sachs India Ltd, Citigroup Global Markets, HSBC Global Investment Fund, Axis Mutual Funds, Kotak Funds and Nomura Singapore Ltd.
The Rs504.8 crore Shalby IPO will open on 5 December and close on 7 December.
The Shalby IPO includes a fresh issue of Rs480 crore. Majority of the funds from the fresh issue (approximately Rs320) will be used for retiring the debt of the company, while the rest will be used for purchase of medical equipment for existing, recently set up and upcoming hospitals, purchase of furniture and allied infrastructure for upcoming hospitals, and to meet general corporate expenses.
Promoter Vikram Shah Burman plans to sell one million shares, which at the upper end of the price band will fetch Rs24.8 crore.
Established in 1994 as a six-bed facility in Ahmedabad, Shalby now operates 11 multi-speciality hospitals, having an aggregate bed capacity of 2,012. Shalby’s specialities encompass areas such as joint replacement surgery, spine surgery, neurology and neurosurgery, cardiac surgery and sports injury care. In 2016-17, the company reported revenue of Rs332.86 crore, up 14% from the previous fiscal. The company reported a profit of Rs62.56 crore in 2016-17, up 66% from a year earlier.
Edelweiss Financial Services Ltd, IDFC Bank Ltd and IIFL Holdings Ltd are managing the Shalby IPO.