GPT Healthcare lists at 16% premium at Rs 216 per share on BSE

GPT Healthcare Limited operates a chain of mid-sized, multi-specialty, full-service hospitals in Eastern India under the ILS Hospitals brand, providing integrated healthcare services with a focus on secondary and tertiary care, debuted on the Indian stock market today.

The stock of GPT Healthcare opened at Rs 216.15 per share on the BSE, reflecting a substantial 16.21% premium over the final issue price of Rs 186 per share. The market capitalisation on the BSE is now Rs 1773.61 crore. Conversely, on the NSE, the stock debuted at Rs 215 per share with a premium of 15.60%.

IPO Proceeds:

The company intends to use the net proceeds to repay or prepay outstanding borrowings from banks and financial institutions. Additionally, funds will be allocated for general corporate purposes, supporting overall operational needs and strategic initiatives.

Company profile:

GPT Healthcare Limited operates a chain of mid-sized, multi-specialty, full-service hospitals in Eastern India under the ILS Hospitals brand, providing integrated healthcare services with a focus on secondary and tertiary care. The company was incorporated in 1989.

Based in Kolkata, West Bengal, the company offers a range of healthcare services in over 35 specialties and super-specialties. These services include internal medicine and diabetology, nephrology (including kidney transplant), laparoscopic and general surgery, gynaecology and obstetrics, intensive care, gastroenterology, orthopaedics and joint replacement, interventional cardiology, neurology, neurosurgery, paediatrics, and neonatology. Additionally, it provides integrated diagnostic services and pharmacies.

Subscription details: 

On February 26, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 8.52 times. The public issue received remarkable interest, with the retail category being subscribed 2.44 times, while the QIB and NII category reached a subscription rate of 17.30 and 11.02 times respectively.

The IPO price band was between Rs 177 to Rs 186 per share, with a face value of Rs 10 per share and a lot size of 80 shares. The total size of the company’s IPO was Rs 525.14 crore, and the final share issue price was fixed at Rs 186 each.

Conclusion:

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 16% on the listing day itself and can choose to book the profit it has generated. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.