Mumbai: Shalby Ltd, which runs a multi-speciality hospital chain, on Tuesday said its Rs504.8 crore initial public offering (IPO) will open on 5 December.
Shalby has set a price band of Rs245-248 per share for the IPO, which values it at Rs2,172-2,198 crore. The offer will close on 7 December.
The Shalby IPO includes a fresh issue of Rs480 crore. According to Ravi Bhandari, chief executive of Shalby, Rs320 crore from the fresh issue 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 1 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.
Bhandari said Shalby intends to strengthen its hospital presence in western and central India and continue expanding into new geographies, implement initiatives to improve operational efficiencies and continue to grow ancillary businesses. The ancillary services currently offered by the company include Shalby Academy, Shalby Homecare and clinical research trials.
Since December 2016, five healthcare services firms have tapped the primary markets to fund expansion and provide an exit to private equity investors. Collectively, these firms—Eris Lifesciences Ltd, Dr Lal Pathlabs Ltd, Narayana Hrudayalaya Ltd, HealthCare Global Enterprises Ltd and Thyrocare Technologies Ltd—have raised Rs4,116 crore.
This year, IPO fundraising has breached the all-time high seen in 2010, where 64 companies raised Rs37,534.65 crore. Until October 2017, the Indian primary market has witnessed 30 IPOs with companies raising Rs47,099 crore, according to data from primary market tracker Prime Database. In 2016, 26 companies raised Rs26,493.8 crore through the IPO route.