Gujarat Kidney IPO booked 5.2x on final day; retail investors show strong interest, GMP indicates muted listing

The initial public offering of Gujarat Kidney received a healthy response from investors during its three-day bidding period. The issue, which opened on Monday, December 22, closed today, attracting bids for 6.89 crore shares against 1.32 crore shares on offer, resulting in a subscription rate of 5.21 times, according to exchange data.

Among investor segments, retail individual investors showed the strongest interest, with their quota subscribed 19 times, followed by non-institutional investors, whose portion was subscribed 5.73 times. The QIB segment was also fully subscribed at 1.06 times, as per exchange data.

Gujarat Kidney IPO details

The Gujarat Kidney is a book-built issue worth ₹250.80 crore, which is entirely a fresh issue of 2.20 crore shares. The price band of the Gujarat Kidney IPO has been fixed at ₹108– ₹114 per share.

The company proposes to use the funds from the issue towards the acquisition of Parekhs Hospital, capital expenditure requirements, debt repayment, and for general corporate purposes.

The Gujarat Kidney IPO allotment of shares is expected to be finalized on Friday, December 26. The company will initiate refunds on Monday, December 29, and the shares will be credited to the demat accounts of allottees on the same day following refunds.

The shares are set to list on both NSE and BSE tentatively on Tuesday, December 30.

Gujarat Kidney GMP signals healthy listing

As of today, the grey market premium (GMP) for the Gujarat Kidney IPO stands at ₹03 per share, suggesting that the stock to list slightly above its issue price. Based on this GMP and the upper price band, the estimated listing price for the stock stood at ₹116, reflecting a 2.6% premium.

The GMP represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.

About Gujarat Kidney

The company is one of the regional healthcare companies located in the central region of the state of Gujarat and operates a chain of mid-sized multi-specialty hospitals, providing integrated healthcare services, with a focus on secondary and tertiary care.

On a consolidated basis, the company operates seven multispecialty hospitals and four pharmacies with a total bed capacity of 490 beds, an approved capacity of 455 beds, and an operational capacity of 340 beds, its RHP showed.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.