Healthcare Global gets Sebi nod for IPO

The shares are proposed to be listed on BSE and NSE

Healthcare Global Enterprises (HCG), a cancer care network operator, has received the Securities and Exchange Board of India's (Sebi's) approval to float an initial public offer (IPO).

The company filed its Draft Red Herring Prospectus (DRHP), with Sebi on July 27 for the IPO, wherein the promoters and other existing shareholders will collectively sell 31.1 million shares of the company. This comprises a fresh issue of up to 11.6 million shares and an offer for sale of up to 19.5 million scrips by existing stakeholders. Sebi has cleared the proposed initial share sale and gave its final observations on the IPO on November 20.

The shares are proposed to be listed on the BSE and the National Stock Exchange (NSE).

The proceeds of the issue would be used for purchase of medical equipment, investment in IT software, services and hardware, payment of debt and for general corporate purposes.

The Bengaluru-based firm operates one of the largest cancer care networks in the country under the brand name 'HCG'.Currently, HCG has 15 comprehensive cancer centres.

Since the beginning of 2015, as many as 40 companies have filed draft documents with Sebi to float IPOs. In the same period, the market watchdog gave approval to 31 firms to launch their initial share sale plans, some of which were pending from previous year.

This year, 18 companies have so far launched IPOs and have collectively raised nearly Rs 11,000 crore, making it the best in four years in terms of fund raising through initial share-sale programmes.

In comparison, six IPOs had hit the market in the entire 2014 and together garnered just Rs 1,261 crore, while three firms had launched their public issues in 2013 to mobilise Rs 1,284 crore.