GPT Healthcare IPO closes for subscriptions today. Should I apply?

The GPT Healthcare IPO worth ₹525 crore comprises fresh issue of equity shares that aggregate to ₹40 crore and an OFS of up to 2.6 crore equity shares

The initial public offering (IPO) of health firm GPT Healthcare Ltd will close for public subscriptions on Monday. The IPO had received 85 per cent subscription on Day 2 of the offer last Friday.

IPO stands for Initial Public Offering and it is when the promoters of the company in question for the first time want to raise additional funds by offering shares of the company.

As per a data by the National Stock Exchange, the IPO got 1,67,51,920 bids for shares against 1,97,63,327 shares on offer. While the initial share in retail individual investors (RII) got 1.24 times subscriptions, the quota was 79 per cent for non-institutional investors. On the other hand, the qualified institutional buyers got 19 per cent subscription.

The GPT Healthcare IPO worth ₹525 crore comprises fresh issue of equity shares that aggregate to ₹40 crore and an OFS of up to 2.6 crore equity shares by private equity firm BanyanTree Growth Capital II.

As per a PTI report, BanyanTree has 2.6 crore shares or 32.64 per cent stake in the Kolkata-based firm. The price band for the IPO is ₹177-186 per share. The proceeds from the IPO will be utilised for paying debt and general corporate purposes.

Founded by Dwarika Prasad Tantia, Om Tantia and Shree Gopal Tantia, the firm started with an eight-bed hospital in Kolkata in 2000. GPT Healthcare now runs four full-service multi-speciality hospitals having a total capacity of 561 beds.

The company had raised ₹157.54 crore from anchor investors a day before its IPO. GPT Healthcare had allotted 84.7 lakh equity shares to 15 funds at ₹186 apiece, which is also the upper end of the price band, according to a circular uploaded on the BSE website.

(With PTI inputs)