Maitreya Medicare IPO bought 75.39 times on day 2, retail portion booked 94.55 times
Maitreya Medicare IPO bought 75.39 times on day 2, retail portion booked 94.55 times
Maitreya Medicare, in its recent initial public offering (IPO), experienced an overwhelming response from investors, with the subscription reaching an impressive 75.39 times on the second day of bidding, which was October 30. The enthusiastic investor participation resulted in the purchase of 9.96 crore equity shares, significantly surpassing the issue size of 13.21 lakh shares.
The positive sentiment among retail investors was particularly notable, as they bid 127.58 times the allotted quota. Likewise, high net worth individuals (non-institutional investors) demonstrated a strong interest in the company, subscribing to 67.57 times the portion allocated for them. Qualified institutional buyers also exhibited significant interest, subscribing 17 times the portion reserved for them.
Maitreya Medicare, a Gujarat-based multispecialty hospital, is looking to raise Rs 14.89 crore through its public issue, which comprises solely of a fresh issue of 18.16 lakh equity shares. The IPO is structured as a book-built issue, with a price band set at Rs 78-82 per share.
The overwhelming subscription for Maitreya Medicare’s IPO reflects investors’ confidence in the company’s prospects and its position in the healthcare sector. The significant oversubscription signifies the market’s belief in the potential growth and success of the company, highlighting the strong demand for healthcare-related investments in the current market landscape.
According to the information provided, Maitreya Medicare intends to utilize a significant portion of the net fresh issue proceeds for various purposes. A total of Rs 7.5 crore is allocated to be invested in its subsidiary, Maitreya Hospital, specifically for establishing a new hospital in Valsad. Additionally, Rs 1 crore is earmarked for the redemption of part of the issued non-convertible redeemable preference shares.
Moreover, a portion of the IPO proceeds, amounting to Rs 5 crore, will be allocated towards fulfilling the company’s working capital requirements. The remaining funds will be reserved for general corporate purposes, enabling the company to maintain its operational efficiency and support overall business growth initiatives.
For the establishment of the new hospital in Valsad, Maitreya Medicare plans to further finance the project with Rs 9.5 crore through its internal accruals. Additionally, the company intends to secure an additional Rs 1 crore through borrowings, bringing the total estimated cost for setting up the hospital to Rs 18 crore.
By strategically allocating the IPO proceeds towards essential operational and growth-focused initiatives, Maitreya Medicare aims to strengthen its presence in the healthcare sector and expand its service offerings, thereby contributing to its overall long-term sustainability and success.
Ahead of its public offering, Maitreya Medicare managed to raise Rs 4.05 crore through its anchor book at the upper price band. Notable investors participating in the anchor book included the Newgen Undiscovered Value Fund, Absolute Returns Scheme, Swyom India Alpha Fund, and Finavenue Capital Trust-Finavenue Growth Fund. Their participation in the anchor book signifies a strong vote of confidence in the company’s future prospects and growth trajectory.
Moreover, investors in the grey market have exhibited a significant level of interest in Maitreya Medicare’s IPO, with shares trading at a considerable premium of over 70 percent above the upper price band, as noted by analysts speaking on condition of anonymity. The grey market, operating as an unofficial platform for trading IPO shares until the listing, serves as an indicator of market sentiment and investor confidence in the potential value and performance of the company post-listing.
The substantial premium observed in the grey market highlights the anticipation and positive outlook among investors regarding Maitreya Medicare’s future performance and market reception. This heightened interest in the grey market underscores the market’s bullish sentiment towards the company, reflecting investors’ optimism about the company’s growth prospects and the potential for strong returns on investment. Such promising indicators bode well for Maitreya Medicare’s market debut and suggest a favorable reception for its IPO among investors.
