IPO of Narayana Hrudayalaya opens for bidding on 17 December

Promoters and existing shareholders are selling a portion of their stake

The initial public offer (IPO) of Narayana Hrudayalaya, founded by cardiac surgeon Dr. Devi Prasad Shetty, opens for bidding on 17 December 2015. The price band for the IPO has been fixed at Rs 245-250 per share. The bidding for the IPO ends on 21 December 2015. Promoters and some existing shareholders in the company are selling a portion of their stake through the IPO and there is no fresh issue of equity shares from the company. The promoters are selling a total of 40.87 lakh shares via the IPO. Among existing investors, J P Morgan Mauritius Holdings IV is offloading 1.22 crore shares, Ashoka Investment Holdings is selling 62.87 lakh shares and Ambadevi Mauritius Holding is selling 18.86 lakh shares.

As per the Red Herring Prospectus, the selling shareholders may in consultation with the book running lead managers offer a pre-specified discount on the offer price to retail individual bidders.

Headquartered in Bengaluru, Narayana Hrudayalaya operates a chain of 23 hospitals, 8 heart centres and 24 primary care facilities across India. The hospitals provide advanced levels of care in over 30 specialties, including cardiology, cardiac surgery, cancer care, neurology, neurosurgery, orthopaedics, nephrology, urology and gastroenterology. The company is currently in the process of commissioning a dedicated paediatric hospital in Mumbai and a multispecialty hospital at Lucknow in Uttar Pradesh.

Based on the consolidated financial performance, Narayana Hrudayalaya reported net profit of Rs 12.48 crore on revenue from operations of Rs 783.36 crore for six months ended September 2015. The company registered a net loss of Rs 10.86 crore on revenue from operations of Rs 1363.85 crore for the year ended 31 March 2015.

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