Narayana Hrudayalaya fixes IPO price band at Rs 245-250

Healthcare services major Narayana Hrudayalaya Ltd (NHL) today fixed the price band between Rs 245 and Rs 250 for its initial public offer (IPO), which will hit the capital market on December 17.
The IPO, which would close on December 21, would be made through an offer of sale of up to 2.45 crore equity shares representing 14.04 per cent stake in the company by the promoters and other existing shareholders.
Going by the Rs 245 - Rs 250 price band offered per equity share, Narayana Hrudayalaya would raise up to Rs 601 crore - Rs 613 crore.
Those participating in the share sale include company's main promoter and founder Devi Prasad Shetty. JP Morgan Mauritius, Ashoka Investment Holdings and Ambadevi Mauritius Holding are other investors who would be offering shares in the IPO.

Post IPO, the promoters will hold 65 per cent stake in the company.
Founded in 2000 by Dr Devi Prasad Shetty, the company is one of the leading private healthcare service providers in the country, operating a chain of multi-specialty, tertiary and primary healthcare facilities.

The company has a network of 23 hospitals (multi-speciality and super-speciality healthcare facilities which provide tertiary care), 8 heart centres and 24 primary care facilities including clinics and information centres, across 31 cities, towns and villages in India.
In FY 2015, the facilities provided care to over 1.97 million patients.
"We now plan to set up 4 new hospitals at an estimated cost of around Rs 100 crore. The 241 bedded hospital at Vaishnodevi will be set up in public-private partnership (PPP) model and it will be ready in 12 months period," company's Chairman Devi Prasad Shetty told reporters here.

"We are also setting up new hospital in Mumbai and 226 bedded facility in Lucknow. The company's new facility at Bhuvaneshwar is still under discussion stage," Shetty said, adding that the company will also pursue inorganic growth for future expansion.
Axis Capital, IDFC Securities and Jefferies India are the book running lead managers to the issue.
Narayana Hrudayalaya is the third company in the country's healthcare sector to launch an IPO this month.
Diagnostic chain Dr Lal PathLabs and pharmaceutical firm Alkem Laboratories launched their IPO on December 8.