Shares of Metropolis Healthcare, a diagnostics company, settled nine per cent higher compared to the issue price during stock market debut on Monday. The stock ended at Rs 955 compared to the issue price of Rs 880 per share on the NSE. The scrip touched a high of Rs 982.7 and a low of Rs 935 with nearly Rs 700 crore worth of shares being traded.
Metropolis Healthcare’s Rs 1,200-crore initial public offer (IPO) had garnered nearly six times subscription led by demand from institutional investors. The retail and high net worth individual (HNI) portion of the IPO had seen lukewarm response.
After Monday’s closing price, Metropolis Healthcare is valued at Rs 4,800 crore. The company is the country’s leading diagnostics chain in terms of revenues with presence across 19 states. It offers services such as clinical laboratory tests, used for prediction, early detection, and monitoring of diseases.
Analysts had recommended investors subscribe to the IPO with a long-term investment horizon. In a note, Centrum Wealth had said Metropolis offers better returns ratios compared to peers such a Dr Lal Pathlabs and Thyrocare Technologies.
“Metropolis has better returns ratio with return on net worth at 24.7 per cent for FY18 compared to 21.6 per cent for Dr Lal Pathlabs and 20.4 per cent for Thyrocare Technologies,” it said in the note.
“Given the vast geographical presence, diversified and large tests menu catering to several ailments, and ability to capture future opportunities by way of presence in key growth areas, are likely to help Metropolis maintain its position and boost growth,” it said.
On a price-to-earnings (P/E) valuation basis, analysts said Metropolis is cheaper than Dr Lal Pathlabs but costlier than Thyrocare. Global investor Smallcap World Fund and RK Damani-backed Bright Star Investments bought shares worth Rs 65 crore each of Metropolis Healthcare, bulk deal data showed.