Global Health (Medanta Hospital) IPO: What GMP reflects on last day of subscription

Global Health IPO: The public issue worth ₹2,205.57 crore opened for subscription on 3rd November 2022 and it will remain open for bidder till 7th November 2022. This means today is the last date for applying to the initial public offering (IPO). On third day of subscription by 3:35 pm, the public issue has been subscribed 7.53 times whereas its retail portion has been subscribed 0.80 times. The QIB portion of the public issue has been subscribed 21.84 times while NII portion has been subscribed 3.82 times. 

As subscription of the issue is going to close today, grey market is also signaling about the IPO. According to market observers, shares of Medanta hospital operator Global Health Global Health is available at a premium of ₹16, which is ₹3 higher from its yesterday's grey market premium (GMP) of ₹13.

Global Health IPO GMP today

Market observers said that Global Health IPO GMP today is ₹16, which is ₹3 higher from its yesterday's GMP of ₹13. They said at par GMP of the public issue is because of the tepid response of the investors. They said that subscription levels in retail portion of the IPO is still under 100 per cent, which is one of the major reasons for tepid response by the grey market. They said that mmuch will depend upon the subscription status of the IPO after the close of stock market today as the IPO had opened when market sentiments were negative.

What this GMP means?

Market observers went on to add that Global Health IPO GMP today is ₹16, which means grey market is expecting that Global Health IPO listing would be around ₹352 ( ₹336 + ₹16), which is at par with the price band of the IPO at ₹319 to ₹336 per equity share. They said that grey market is signaling par listing of the public issue.

However, stock market experts maintained that grey market is not an ideal indicator about the listing premium of an IPO. They said that GMP numbers can be artificial as it involved even those who have high stake involved in it. They advised bidders to stick with the basic and suggested them to scan the balance sheet of the company as it would give a concrete fundamental picture of the IPO.

About Global Health

Global Health Ltd currently running four hospitals in Gurugram, Indore, Lucknow and Ranchi under the ‘Medanta’ brand.  It is one of the largest private multi-speciality tertiary care providers operating in the North and East regions of India.