Shares of Global Health, which operates multisuperspeciality hospitals under the Medanta brand, and Bikaji Foods International made decent debut on the domestic stock exchanges on Wednesday, in an otherwise subdued broader market. Global Health shares price listed at ₹398.15 on the BSE, a premium of 18.5% against the issue price of ₹336, while Bikaji Foods stock price jumped 7% to ₹321.15 as compared to the IPO price of ₹300. On the National Stock Exchange (NSE), Global Health shares debuted 19.3% higher at ₹401, while Bikaji Foods opened up by 7.6% at ₹322.80. In comparison, the BSE Sensex was trading 47 points lower at 61,826 levels.
Post listing, Global Health shares gained 20% to hit a high of ₹404.05 on the BSE, whereas Bikaji Foods share price surged 11.7% to ₹335 apiece.
The listing of Global Health and Bikaji Foods International was in line with D-Street expectations as their IPOs were subscribed 10 times and 27 times, respectively. The subscription data showed that both IPOs received strong demand from qualified institutional buyers (QIBs), but a relatively muted response from high networth individuals (HNIs) and retail investors.
Here’s all you need to know about both these IPOs:
Global Health’s ₹2,200 cr IPO subscribed 10 times
Founded by Dr. Naresh Trehan, a renowned cardiovascular and cardiothoracic surgeon, Global Health has raised around ₹2,200 crore from the public offering, which is touted to be the largest ever initial public offering (IPO) in the hospital space in India till date. The IPO, which opened between November 3-7, had a price band of ₹319-336. The lot size was 44 shares, which means a retail investor can apply for up to 13 lots (572 shares or ₹192,192).
The issue comprised of fresh issue of equity shares worth ₹500 crore and an offer for sale (OFS) of around 5.08 crore shares by the promoters. The company proposes to use the net proceeds from the fresh issue for repayment of borrowings, in full or part, of the subsidiaries, GHPPL and MHPL, as well as for general corporate purposes.
The IPO was subscribed over 9.58 times, led by qualified institutional buyers (QIBs), whose quota was booked 28.64 times. The portion for non-institutional investors was subscribed 4.02 times, while the retail investors portion was booked just 0.88 times.
Ahead of the IPO, the company mobilised ₹662 crore from anchor investors by allocating 1.97 crore equity shares at ₹336 apiece. The major anchor investors which participated in this pre-IPO investment include Government of Singapore, Nomura, SBI Life Insurance Company, SBI Mutual Fund (MF), Axis MF, HDFC MF, Aditya Birla Sun Life MF, ICICI Prudential MF, Kotak MF, Max Life Insurance Company and others.
Bikaji Foods IPO subscribed 26.67 times
The ₹881-crore IPO of Bikaji Foods International garnered strong response from investors, with the issue oversubscribing by 26.67 times, which opened between November 3-7. The issue, having a price band of ₹285-300 per share, was a complete offer for sale by existing shareholders.
As per the data available on the NSE, the issue of the food company received bids for 55,04,00,900 shares as against 2,06,36,790 shares on offer. The offer received huge demand from qualified institutional buyers (QIBs) as the quota reserved for them was subscribed more than 80 times. The portion reserved for non-institutional bidders were booked 7.1 times and that of retail investors by 4.77 times. The reserved quota for eligible employees was booked 4.38 times.
Besides, the FMCG company had raised ₹262.11 crore from anchor investors by issuing 87,37,194 shares at ₹300 each to 36 anchor investors.
Bikaji Foods International is the third largest ethnic snacks company with six operational manufacturing facilities - four in Bikaner (Rajasthan), one in Guwahati (Assam), and one in Tumakuru (Karnataka). The company sells bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs (assortment), frozen food, mathri range and cookies. In the past six months ended June 30, 2022, the company sold more than 300 products under the Bikaji brand, as per the offer document.