InvestorQ : How was the final subscription status for the Global Health IPO that closed on Monday 07th November?
Deepa Salunkhe made post

How was the final subscription status for the Global Health IPO that closed on Monday 07th November?

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Arya Nanda answered.
3 weeks ago
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The Rs.2,206 crore IPO of Global Health Ltd (Medanta), saw steady response on Day-1 and Day-2 of the IPO. At the close of Day-3, Medanta got its big oversubscription from the QIB portion while the retail portion got undersubscribed. Here are the details of the total subscription status at close. The issue was overall subscribed 9.58 times i.e. out of the 467.42 lakh shares on offer in the IPO, Medanta saw bids for 4,479.85 lakh shares. The granular break-up of subscriptions was strongly in favour of the QIB investors followed by the HNI / NII investors but the retail portion could not manage even a full subscription.

Let me first talk about the QIB portion. A day ahead of the IPO opening, Medanta did an anchor placement of 1.97 crore shares at Rs336 per share to 52 anchor investors. It had raised Rs.661.67 crore via anchor placement from marquee investors like Government of Singapore, Monetary Authority of Singapore, Nomura, Stichting Pensions, Ontario Teachers, Norwegian Pension Fund etc. The QIB portion (net of anchor) portion had a quota of 135.25 lakh shares of which it has got bids for 3,873.59 lakh shares at the close of Day-3. Thus the QIB portion got an impressive subscription ratio of 28.64X at the close of Day-3.

Let us now look at the HNI / NII component. This segment got subscribed 4.02X (it got applications for 400.56 lakh shares against the quota of 99.65 lakh shares). You can call it a sort of steady response although it did not set the stands on fire. The funded applications and corporate applications really did not build up on the last day in a big way. Within the HNI portion there are now 2 categories. The above Rs10 lakh bid category (B-HNI) got subscribed 5.16X while the below Rs10 lakh bid category (S-HNIs) got subscribed 1.73X. This is for information and it is included in the consolidated HNI subscription figure.

Finally we come to the retail portion that got subscribed, getting subscriptions for just 0.88X at the close of Day-3. That clearly indicates low retail appetite for a brand that is very popular. Out of the 232.52 lakh shares on offer, valid bids were received for only 205.71 lakh shares, and this included bids for 162.01 lakh shares at the cut-off price. The IPO of Global Health Ltd (Medanta) was priced in the band of (Rs.319-Rs.336) and it has now closed for subscription as of the close of Monday, 07th November 2022.

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