HealthCare Global Enterprises IPO subscribed 20%

Receives bids for 33.05 lakh shares

The initial public offer (IPO) of HealthCare Global Enterprises received bids for a total of 33.05 lakh shares on the first day of bidding for the IPO today, 16 March 2016, compared with 1.63 crore equity shares on offer, as per data from the National Stock Exchange (NSE) website at 16:00 IST. The IPO was subscribed 0.20 times. The bidding for the IPO concludes on Friday, 18 March 2016.

HealthCare Global Enterprises has raised Rs 292.33 crore by selling 1.34 crore shares to a total of 13 anchor investors ahead of the opening of the company's initial public offer (IPO). The shares were allotted to the anchor investors at Rs 218 per share, the top end of the Rs 205 to Rs 218 per share price band for the IPO.

Among the anchor investors, International Finance Corporation will be allotted 43.58 lakh shares, Spring Healthcare India Trust will be allotted 14.67 lakh shares, HDFC Standard Life Insurance Company will be allotted 13.77 lakh shares and Chennai 2007, C/O Harvard Management Co. Inc will be allotted 13.77 lakh shares. Other investors include, Sundaram Mutual Fund, BNP Paribus Trust Services, Sabre Partners Trust, Reliance Life Insurance Company and Kotak Opportunities Fund, among others.

The Bengaluru-based firm has priced the offer in the band of Rs 205-218 per share. The total issue size will range from Rs 610.90 crore to Rs 649.60 crore. The offer would constitute 35.03% of the post-offer paid-up equity share capital.

The public offer of up to 2.98 crore equity shares, will comprise a fresh issue of up to 1.16 crore equity shares and an offer for sale of up to 1.82 crore equity shares by the selling shareholders.

HealthCare Global Enterprises, the specialist in cancer care has its headquarters in Bangalore, India and is known to be the only dedicated cancer care network with quality care across 20 centers.

The company proposes to utilize the net proceeds of the fresh issue towards purchase of medical equipment (Rs 42.20 crore), investment in IT software, services & hardware (Rs 30.19 crore), pre-payment of debt (Rs 147.05 crore) and general corporate purposes. The company had total borrowings of Rs 385 crore as on 30 November 2015.

On a consolidated basis, HealthCare Global Enterprises reported net loss of Rs 3.71 crore on sales of Rs 378.89 crore in the eight-months ended November 2015.

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