Narayana Hrudayalaya shares jump 35% from issue price on listing day

Mumbai: Shares of Narayana Hrudayalaya Ltd rose almost 35% 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 ₹ 250 per share, closed at ₹ 336.70 on the BSE on a day the benchmark Sensex fell 0.68% to close at 25,406.33 points. The stock opened at ₹ 291 and touched a high of ₹ 344.20.

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 ₹ 240-250 per share for its IPO.

The firm raised ₹ 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 held 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 ₹ 1,371.5 crore compared with ₹ 1,117.5 crore in the previous year. The company reported a loss of ₹ 10.8 crore in 2014-15 compared with a profit of ₹ 31.7 crore in the previous year.

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 ₹ 632 crore through its IPO, while Alkem Laboratories Ltd raised ₹ 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 ₹ 13,600 crore through the IPO route.