Global Health Ltd (Medanta) IPO subscribed 9.58 times at close

The Rs.2,205.57 crore IPO of Global Health Ltd (Medanta), consisted of a fresh issue component of Rs500 crore and an offer for sale of Rs1,705.57 crore. The IPO saw steady response on Day-1 and Day-2 of the IPO and closed with fairly steady numbers at the close of Day-3, although retail investors once again disappointed. In fact, the company got its big time over subscription only from the QIB portion while the retail portion got undersubscribed in this case. As per the combined bid details put out by the BSE at the close of Day-3, Global Health Ltd (Medanta) IPO was subscribed at 9.58X overall, with best demand coming from the QIB segment. In fact, only the institutional segment saw some good traction on the last day. The HNI portion did not get the push it normally gets in many issues on the last day.

As of close of 07th November 2022, out of the 467.42 lakh shares on offer in the IPO, Global Health Ltd (Medanta) saw bids for 4,479.85 lakh shares. This implies an overall subscription of 9.58X. The granular break-up of subscriptions was in favour of the QIB investors followed by the HNI / NII investors while the retail portion was not even fully subscribed. QIB bids and NII bids typically gather most of the momentum on the last day, and that was the case in this issue also in the case of QIB bids. However, the NII bids hardly picked momentum even on the last day and just about bettered its subscription in the first two days.

Global Health Ltd (Medanta) IPO Subscription Day-3

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 2nd November 2022, Global Health Ltd (Medanta) did an anchor placement of 1,96,92,584 shares at the upper end of the price band of Rs.336 to 52 anchor investors raising Rs.661.67 crore. The list of QIB investors included a number of marquee global names like Government of Singapore, Monetary Authority of Singapore, Nomura, Stichting Pensions, Ontario Teachers, Norwegian Pension Fund, Jupiter South Asia, Allianz Global Investors, Cohesion MK; apart from a slew of top quality domestic mutual funds and insurance companies.

The QIB portion (net of anchor allocation as explained above) has 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, implying a subscription ratio of 28.64X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and while the heavy demand for the anchor placement had given an indication of the institutional appetite for the Global Health Ltd (Medanta) IPO subscription overall, the actual demand did turn to be quite robust for the IPO.

HNI / NII Portion

The HNI portion got subscribed 4.02X (getting applications for 400.56 lakh shares against the quota of 99.65 lakh shares). That is a rather steady response at the close of Day-3 largely because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO, and that was not exactly visible as the overall HNI / NII portion itself just about improved on the last day. However, the HNI portion overall did manage to sail through.

Now the NII/HNI portion is reported in two parts viz. bids below Rs10 lakhs (S-HNI) and bids above Rs10 lakhs (B-HNI). The bids above the Rs10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above Rs10 lakh bid category got subscribed 5.16X while the below Rs10 lakh bid category (S-HNIs) got subscribed 1.73X. This is just for information and is already part of the overall HNI bids explained in the previous para.

Retail Individuals

The retail portion was undersubscribed getting just 0.88X at the close of Day-3, showing very low retail appetite. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 232.52 lakh shares on offer, valid bids were received for only 205.71 lakh shares, which included bids for 162.01 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.319-Rs.336) and has closed for subscription as of the close of Monday, 07th November 2022.