Park Medi World Shares Listed on BSE at ~4% Discount Despite Oversubscription of Over 8x

Hospital chain operator Park Medi World made a subdued debut on Dalal Street despite a broadly positive market sentiment. The stock opened at ₹158.80 on the NSE, marking a discount of ₹3.20, or nearly 2%, from its issue price of ₹162.

On the BSE, Park Medi World shares are listed at ₹155.60, reflecting a steeper discount of ₹6.40, or about 4%. Following the listing, the stock recovered modestly and was trading nearly 3% higher than its opening price.

IPO Subscription Response

As per data from the National Stock Exchange (NSE), the Park Medi World IPO received a healthy response from investors, with overall subscription reaching 8.10 times. Bids were placed for 338.83 million equity shares against the 41.81 million shares available for subscription.

Investor-wise Demand

Non-Institutional Investors (NIIs) drove demand, oversubscribing their portion by 15.15 times. The Qualified Institutional Buyers (QIBs) segment was subscribed to 11.48 times, while the retail investor category saw subscriptions of 3.16 times the shares reserved.

IPO Structure and Size

Park Medi World raised ₹920 crore through its initial public offering, which comprised a fresh issue of 47.5 million equity shares along with an offer for sale (OFS) of 9.3 million shares by promoter Ajit Gupta. The IPO was priced in the range of ₹154 to ₹162 per share, with a minimum application size of 92 shares. The issue was open for subscription from December 10 to December 12, and the allotment of shares was finalised on Monday, December 15.

Also Read: SEBI Clears IPOs of 7 Companies, Including Yashoda Healthcare and Orient Cables

Kfin Technologies is acting as the registrar for the IPO. The book-running lead managers include Nuvama Wealth Management, CLSA India, DAM Capital Advisors, and Intensive Fiscal Services.

Use of Proceeds

According to the Red Herring Prospectus (RHP), ₹380 crore from the net proceeds of the fresh issue will be used to repay certain outstanding borrowings. Additionally, ₹60.5 crore is earmarked for the development of a new hospital by subsidiary Park Medicity (NCR), while ₹27.4 crore will be utilised for the purchase of medical equipment by the company and its subsidiaries. The remaining funds will be allocated towards unidentified inorganic acquisitions and general corporate purposes.

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