Healthy Listing: This Main Board Company Makes Debut On Exchanges At 16% Premium On IPO Price

GPT Healthcare witnessed a stellar debut on the stock market, listing at a 16% premium to the IPO price on February 29. This performance surpassed analysts' predictions of a 5% premium, indicating a robust market reception for the healthcare company.

The awaited initial public offering (IPO) saw GPT Healthcare's stock opening at Rs 215 per share on the NSE and Rs 216.15 per share on the BSE, significantly higher than the issue price of Rs 186 per share. Investors who managed to secure shares during the IPO are now enjoying an early windfall.

Leading up to its debut, the stock held a 9% premium in the grey market, an unofficial platform where shares are traded before the allotment in the IPO and until the listing day. The Grey Market Premium (GMP) served as a barometer for many investors, providing insights into the potential listing price.

GPT Healthcare's public issue, which raised Rs 525.14 crore, witnessed a subscription of 8.5 times between February 22 and 26. Qualified institutional investors showed strong interest, subscribing 17.3 times the reserved portion, while retail investors and non-institutional investors subscribed 2.4 and 11 times, respectively.

The IPO's price band was set at Rs 177-186 per share, and the company successfully raised funds through the fresh issue of 21.5 lakh shares worth Rs 40 crore, coupled with an offer-for-sale of 2.6 crore shares valued at Rs 485.14 crore. The net proceeds from the IPO will be directed towards the repayment or prepayment of certain outstanding borrowings, with the remainder allocated for general corporate purposes.

JM Financial played an important role as the book-running lead manager for the GPT Healthcare IPO, while Link Intime India Private served as the registrar. The company's promoters include GPT Sons, Dwarika Prasad Tantia, Om Tantia, and Shree Gopal Tantia.

GPT Healthcare, known for its brand ILS Hospitals, holds a prominent position among regional corporate healthcare entities in Eastern India in terms of bed capacity and the number of hospitals. The company specializes in providing integrated healthcare services, with a particular focus on secondary and tertiary care.

Experts in the stock market anticipated a positive listing for GPT Healthcare IPO, considering the 8.52 times subscription rate. Despite relatively lower participation from retail and High Net Worth Individual (HNI) investors, analysts believed that the IPO's listing would be favourable, with a predicted range of Rs 185 to Rs 195 per share.

The Grey Market Premium (GMP) on the listing day stood at Rs 18, indicating a Rs 4 increase from the previous day's GMP of Rs 14. This surge in the GMP suggested that the market expected the GPT Healthcare IPO listing price to be around Rs 204 (Rs 186 + Rs 18), reflecting 10% higher than the IPO price band of Rs 177 to Rs 186 per equity share. Investors who secured allotments in the IPO are anticipated to experience a notable listing gain.