Narayana Hrudayalaya, which operates multi-specialty hospital chain under the brand name of Narayana Health, made a strong debut on the exchanges on Wednesday. The stock soared as much as 38 per cent to Rs 345.65 against its issue price of Rs 250.
Narayana Hrudayalaya's Rs 613 crore initial public offer (IPO), which was open between December 17 to December 21, was oversubscribed 8.7 times. The issue got overwhelming response from institutional investors. The section reserved for qualified institutional bidders (QIB) was subscribed 24.3 times.
The issue was an offer for sale, under which promoters and private equity players sold their state to raise Rs 613 crore. Narayana Hrudayalaya also raised Rs 184 crore from 15 anchor investors, including the Singapore government.
Narayana Hrudayalaya operates a chain of 23 multi-specialty, primary and tertiary healthcare facilities and eight heart centres, and 24 primary care facilities across 31 cities.
Speaking to NDTV, Ashutosh Raghuvanshi, group CEO at Narayana Hrudayalaya, said that its 14 new centers, which were set up over last three years will go towards the maturity cycle in next one year and will add "significantly" to its revenue and profit. "We expect growth better than what we have seen in last few years," he added.
Last month two other companies from the healthcare industry- diagnostic chain Dr Lal PathLabs and drugmaker Alkem Laboratories - had also made strong debut on the exchanges. Dr Lal PathLabs jumped 34 per cent while Alkem Laboratories shares soared 33 per cent on their market debut.
The previous year was a good year for initial public offers, with many investors making money from stock listings.
Narayana Hrudayalaya shares closed 34.78 per cent higher at Rs 336.95 apiece.