Ahead of its IPO, Narayana Hrudayalya raises 184 cr.

Ahead of its initial public offering (IPO) hitting the market on Thursday, Narayana Hrudayalaya (NHL) has raised Rs.184 crores through anchor investors on Wednesday. The company achieved these numbers by selling 73.60 lakhs shares to the anchor investors at the rate of Rs.250 per share. The number of shares issued is approximately 4.21 per cent of the total 17.45 crores shares of the company.

Narayana Hrudyalaya is one of the leading private healthcare service providers in India, operating a chain of multispecialty, tertiary and primary healthcare facilities. It enjoys competitive strength through pan-India network with a strong presence in Karnataka and eastern India, pre-eminence in cardiac and renal sciences and strong capabilities in other specialties. It is a highly recognized brand with a strong reputation for clinical excellence and affordable healthcare.

On Wednesday, Foreign institutional investors including Fidelity, Government of Singapore’s GIC, Harvard Management Company and Domestic Institutional investors which include Birla Sunlife, SBI, ICICI Prudential, Reliance Capital and HDFC Mutual Fund bought the shares of the company.

The IPO is to sell 14.04 per cent stake that is 2.45 crore equity shares of the company in the range of Rs. 245 to Rs. 250 per share. The remaining 85.96 per cent will be with the promoter and other existing shareholders. The IPO is an offer for sale from existing investors which indicates that the firm will not be raising any money to invest in its business. Axis Capital Ltd, IDFC Securities and Jefferies are managing the IPO.

On the financial front, the total consolidated operating revenue of NHL for FY15 stood at Rs.1364 crores an increase of 24.53 percent on yearly basis. The company faced a net loss of 10.9 crores in FY15.

The IPO of NHL is the third one from the health sector this month. The IPO of Dr. Lal Pathlabs and Alkem Laboratories oversubscribed 33.41 times and 44.29 times respectively.