Metropolis Healthcare Ltd.: Metropolis IPO gets oversubscribed 5.8x

The quota for qualified institutional buyers (QIBs) was over subscribed 8.8 times.

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Apr 06, 2019, 10.01 AM IST

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The quota for qualified institutional buyers (QIBs) was over subscribed 8.8 times, non-institutional investors (NIIs) 3.03 times and retail 2.18 times.

MUMBAI: Metropolis Healthcare’s initial public offering (

IPO

) to raise Rs 1,200 crore was over subscribed 5.8 times, data with the stock exchanges showed on Friday, the last day of the issue.

The IPO received bids for 44 million shares against the issue size of 7.662 million shares. The issue consists entirely of an offer for sale of 13.7 million shares at a price band of Rs 877-880 per share.

The quota for qualified institutional buyers (QIBs) was over subscribed 8.8 times, non-institutional investors (NIIs) 3.03 times and retail 2.18 times. According to sources, investor Ramesh Damani has put in nearly Rs 175 crore.

Through the public issue, the company is selling 13 million shares. Of these, promoter Sushil Kanubhai Shah is offloading 6.272 million shares, while investor CA Lotus Investments, a subsidiary of US-based private equity firm Carlyle Group, is selling 7.413 million shares. After the IPO, the shareholding of Carlyle group will come down to 16.4 per cent from 31 per cent, while that of Shah will decrease to 7.4 per cent from 19.9 per cent.

While Carlyle is selling a part of its holding, the promoters including managing director Ameera Shah and family will use the funds to help retire debt taken from PE firm KKR to buy out their partners in 2014.

On Tuesday, Metropolis had raised about Rs 530 crore by allotting 6.024 million shares to 26 anchor investors at Rs 880 per share. They include Small Cap World Fund, Neuberger Berman Emerging Market Equity Fund, JP Morgan India Smaller Companies Fund, Citigroup Global, Eastspring Investments, HSBC Global, Aditya Birla Sun Life, BNP Paribas, Sundaram MF and Edelweiss MF.

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Author: Prakash Poojary

Business Analyst

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