Healthcare services major Narayana Hrudayalaya Ltd (NHL) will hit the capital market tomorrow to raise up to Rs 613 crore through its maiden public offering.
The company has fixed the price band between Rs 245 and Rs 250 for the initial public offer(IPO).
The IPO, which would close on 21 December, includes an offer of sale of up to 2.45 crore equity shares representing 14.04 per cent stake in the company by the promoters and other existing shareholders.
Those participating in the share sale include the company's main promoter and founder Devi Prasad Shetty.
JP Morgan Mauritius, Ashoka Investment Holdings and Ambadevi Mauritius Holding are other investors who would be offering shares in the IPO. Post-IPO, promoters will hold 65 per cent stake in the company.
Going by the Rs 245-250 price band offered per equity share, Narayana Hrudayalaya would raise up to Rs 601-613 crore.
Founded in 2000 by Dr Devi Prasad Shetty, the company is one of the leading private healthcare service providers in the country, operating a chain of multi-specialty, tertiary and primary healthcare facilities.
The company has a network of 23 hospitals (multi-specialty and super-specialty healthcare facilities which provide tertiary care), eight heart centres and 24 primary care facilities including clinics and information centres, across 31 cities, towns and villages in India.
In FY 2015, the facilities provided care to over 1.97 million patients.
As per Shetty, the company plans to set up 4 new hospitals at an estimated cost of around Rs 100 crore. The 241 bedded hospital at Vaishnodevi will be set up in public-private partnership (PPP) model and it will be ready in 12 months period.
"We are also setting up new hospital in Mumbai and 226 bedded facility in Lucknow. The company's new facility at Bhubaneshwar is still under discussion stage," he had said recently, adding that the company will also pursue inorganic growth for future expansion.
Axis Capital, IDFC Securities and Jefferies India are the book running lead managers to the issue.
Narayana Hrudayalaya is the third company from healthcare sector to launch an IPO this month. Diagnostic chain Dr Lal PathLabs and pharmaceutical firm Alkem Laboratories launched their IPO earlier this month.
