Park Medi World makes muted debut, lists at 4% discount; miss GMP estimates

Park Medi World shares opened at ₹158.80 on the NSE, a discount of ₹3.2 or 2 per cent from the issue price of ₹162

Park Medi World listing, Park Medi World share price: Hospital chain operator Park Medi World made a muted debut on the Dalal Street in an otherwise positive market. The company's shares opened at ₹158.80 on the NSE, a discount of ₹3.2 or 2 per cent from the issue price of ₹162. 

 

On the BSE, Park Medi World opened at ₹155.6, a discount of ₹6.4 or 4 per cent. Post-listing, the stock was trading nearly 3 per cent higher from the listing price. 

 

Park Medi World debut was below the grey market estimates. Ahead of the listing, the company's unlisted shares were trading at around ₹167 in the grey markets. This indicated a grey market premium (GMP) of ₹5 or 3 per cent, over the issue price, according to sources tracking unofficial market activity.  

Park Medi World IPO subscription rate

According to National Stock Exchange (NSE) data, Park Medi World  IPO received a decent response from investors, with overall subscription reaching 8.10 times. Investors placed bids for 338.83 million equity shares against the 41.81 million shares on offer. Non-Institutional Investors (NIIs) led the demand, oversubscribing their allotted quota by 15.15 times. The Qualified Institutional Buyers (QIBs) segment was subscribed 11.48 times, while the retail investors portion received 3.16 times bids compared to the shares reserved. 

Park Medi World IPO details

Park Medi World successfully raised ₹920 crore through its initial public offering, which comprised a combination of fresh issue of 47.5 million shares and an offer for sale (OFS) of of 9.3 million equity shares by promoter Ajit Gupta. 

 

The IPO was offered in the price band of ₹154 to ₹162 per share, with a minimum application lot of 92 shares. The issue was open for subscription from December 10 to December 12. The allotment of shares was finalised on Monday, December 15. 

 

Kfin Technologies is serving as the registrar for the issue. Nuvama Wealth Management, CLSA India, DAM Capital Advisors, Intensive Fiscal Services are acting as book-running lead managers.

 

As per the Red Herring Prospectus (RHP), the company plans to utilise ₹380 crore from the net fresh issue proceeds for repayment of certain outstanding borrowings. Additionally, ₹60.5 crore will be used for development of new hospital by subsidiary Park Medicity (NCR), ₹27.4 crore for purchase of medical equipment by the company and its subsidiaries, and the remaining funds for unidentified inorganic acquisitions and general corporate purposes.