Shalby fixes price band between Rs 245-248 per share for IPO

Ahmedabad-based multi-specialty hospital chain Shalby today said it has fixed the price band between Rs 245 to Rs 248 per equity share for its proposed initial public offer (IPO) to raise about Rs 504 crore.
The offer comprises a fresh issue of equity shares aggregating up to Rs 480 crore and an offer for sale of up to 10,00,000 equity shares by the selling shareholder.
Proceeds of the IPO will be utilised towards repayment of borrowings availed by the company besides purchasing medical equipment for existing, recently set-up as well as upcoming hospitals, the company said. The offer will open on December 5 and closes on December 7.

"We aim to be one of the leading healthcare service providers in India by expanding the network of hospitals owned and operated through greenfield and brownfield projects, strategic acquisitions and operation and management (O&M) arrangements," Shalby chairman and managing Vikram Shah told reporters here.
Shalby has 11 operational hospitals, having an aggregate bed capacity of 2,012 beds in Ahmedabad, Mumbai, Indore and Jaipur.
The company has entered into a revenue sharing arrangement with the Mumbai-based Asha Parekh Hospital to construct 175 bed new hospital at a cost of Rs 120 crore.

It is also establishing two new hospitals at Nasik in Maharashtra and Vadodara in Gujarat with 113 beds and 150 beds respectively.

As part of expansion plans, the company also plans expand its hospital network to northern India, eastern India, and north eastern part of the country, Shah said.
In the recent months, healthcare services firms Alkem Laboratories, Dr Lal Pathlabs, Narayana Hrudayalaya, Thyrocare and Eris Lifesciences have tapped the primary market through IPO route.