Maitreya Medicare’s IPO Records Astounding 410 Times Subscription on Final Day

Surat-based multispeciality hospital, Maitreya Medicare Limited, has witnessed an overwhelming response to its Initial Public Offering (IPO), with investors showing remarkable enthusiasm. On the final day of bidding, November 1, investors displayed remarkable confidence in the company’s prospects, subscribing to a staggering 410.09 times the offer size of 13.21 lakh shares.

High net worth individuals and retail investors exhibited remarkable enthusiasm, subscribing to the IPO at 790.7 times and 521.06 times the allotted quota, respectively. Qualified institutional buyers were also actively involved, bidding at 78.4 times the portion allocated to them.

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The IPO’s Grey Market Premium (GMP) stood at โ‚น75, reflecting the strong demand for the shares. It is estimated that the listing price will be approximately โ‚น157, representing a significant premium of 91.46% over the upper price band.

This overwhelming response to Maitreya Medicare’s IPO makes it the fifth public issue in the current year to exceed 400 times subscription, following in the footsteps of Kahan Packaging, Srivari Spices and Foods, Madhusudan Masala, and Anlon Technology Solutions.

In light of the impressive subscription numbers and the strong demand in the grey market, analysts have been optimistic about the IPO’s performance, with shares trading at a 73 percent premium over the upper price band.

The IPO, which had a price band of Rs 78-82 per share, was solely a fresh issue component by the company, amounting to Rs 14.89 crore. Maitreya Medicare, a healthcare services provider, is in the process of setting up another hospital, Maitreya Hospital, at Valsad in Gujarat, with a capital expenditure of Rs 18 crore. The company will allocate Rs 7.5 crore from the net fresh issue proceeds for this purpose, with the remaining Rs 9.5 crore being financed through internal accruals and Rs 1 crore through borrowings.

Additionally, the company will utilize Rs 1 crore to redeem non-convertible redeemable preference shares from the fresh issue funds and allocate Rs 5 crore for working capital requirements. The remaining amount will be reserved for general corporate purposes.

Investors who participated in the IPO will now eagerly await the basis of allotment, which the company will finalize by November 6. Successful investors can expect the transfer of equity shares to their demat accounts by November 8. These shares are scheduled to commence trading on the NSE Emerge starting from November 9. The extraordinary response to the Maitreya Medicare IPO reflects the robust investor confidence in the healthcare services sector and the company’s future growth prospects.

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