Narayana Hrudayalaya makes stellar debut, jumps 30%

Narayana Hrudayalaya (NHL), the first debutant of stock market in Calendar 2016, got off to a splendid start on Wednesday, as shares of the Bengaluru-based firm got listed at Rs 291 on BSE, 16.40 per cent, or Rs 41, above the issue price of Rs 250. Apollo’s shares ended the day at Rs 1,454.85 apiece down 0.81 percent over the previous day’s close, even as a search was underway by officials of the income tax department at the offices of the company. The firm had fixed a price band of Rs.240-250 per share for its IPO. Narayana Hrudayalaya had raised Rs 613 crore through its IPO last month. Dr Shetty is regarded as one of the pioneers of low-priced quality medical care in India. It also owns 29% stake in Health City Cayman Islands (HCCI), which targets the Cayman Islands and the surrounding Caribbean region, and operates a 104-bed tertiary care facility focused on cardiac sciences and orthopaedics.

The uptrend at the counter assumes significance as the broader market settled in the negative zone at 25,406.33, down 174.01 points.

Narayana will spend about 1 billion rupees ($14.98 million)over the next three years on setting up four hospitals in India partnering with charitable trusts and organisations, Managing Director and CEO Ashutosh Raghuvanshi said. The company reported a loss of Rs.10.8 crore in 2014-15 compared with a profit of Rs.31.7 crore an year ago. The qualified institutional buyers (QIBs) book was subscribed 24.4 times, the retail category 1.89 times and the non-institutional category, which includes investment from high net worth individuals, 3.6 times. That translated into turnover of Rs 7.63 billion.

Narayana, which operates 23 multi-specialty facilities across 31 locations in the country, plans to open more centres to tap the growing demand.