Shares in Narayana Hrudayalaya made a sterling debut on the bourses, jumping a huge 25 per cent on listing.
The stock was last trading at Rs 315, a jump over the offer price of Rs 250. This is in line with most IPOs like Alkem, InterGlobe etc., which have given significant returns for investors on listing.
Analysts believe that the decent listing gains could result in profit booking in the stock. The hospital business has a long gestation period and hence holding onto shares may fetch returns only in the very long term.
Narayana Hrudayalaya runs a chain of 23 multi-specialty, primary and tertiary healthcare facilities and eight heart centres, and 24 primary care facilities across 31 cities.
There are very few listed players in the space and a comparison can be drawn to Apollo Hospitals, though the latter is a more established player.