HealthCare Global IPO subscribed 1.6 times

The Rs 650 crore issue received bids for 25.3 mn shares against the total issue size of 16.39 mn shares

The initial public offer (IPO) of equity from cancer-care network operator HealthCare Global Enterprises (HCG) was subscribed at least 1.6 times. The final day of the issue was Friday.

The Rs 650-crore issue got bids for 25.3 million shares, against the issue size of 16.39 mn, showed data put up on the National Stock Exchange website.

The qualified institutional buyers' portion was subscribed 2.4 times and the retail (small) investors segment 0.8 times. The non-institutional investors’ category was subscribed 0.4 times.

“We got a good response from institutional investors, including foreign ones, life insurance and mutual funds. Most of them belong to the long-only category,” said V Jayasankar, head of equity capital markets at Kotak Investment Banking.

This is the fourth health care IPO in the market since December. The other three -- of Alkem Laboratories, Dr Lal PathLabs and Narayana Hrudayalaya – received a good response, getting subscribed between 6.3 and 30.8 times. The retail portion in all these IPOs were subscribed by more than one times.

Kotak Mahindra Capital, Edelweiss Financial Services, IDFC Securities, Goldman Sachs, IIFL Holdings and YEs Bank are the lead managers to the HCG issue.

Experts say foreign investors have strong appetite for the health care space, seeing this as a multi-decade growth story. They estimate listed health care assets on the exchanges to be only about $3 billion (Rs 20,000 crore) and there is scope for more companies to come on board.

HCG had raised Rs 292 crore through issue of shares to 11 anchor investors. The company had fixed the price band at Rs 205-218 for the IPO. The issue will fetch about Rs 650 crore at the upper end of the band.

It is the fourth company after Precision Camshafts, TeamLease Services and Quick Heal Technologies to hit Dalal Street with an IPO in 2016.

Meanwhile, Bharat Wire Ropes' Rs 78-crore IPO, which opened on Friday, was subscribed 40 per cent. On Monday, e-commerce entity Infibeam’s Rs 450-crore IPO opens for subscription.