Aatmaj Healthcare IPO: Closing Subscription Details

The IPO of Aatmaj Healthcare Ltd closed on Wednesday, 21st June 2023. The IPO had opened for subscription on 19th June 2023. Let us look at the final subscription status of Aatmaj Healthcare Ltd at the close of subscription on 21st June 2023.

A quick word on Aatmaj Healthcare Ltd and the SME IPO

Aatmaj Healthcare IPO, is an SME IPO on the NSE SME segment which opened for subscription on 19th June 2023. Aatmaj Healthcare Ltd, was incorporated in the year 2014 and it runs multi-specialty hospitals under the brand name of Jupiter Hospitals. The goal is to provide quality healthcare at affordable rates; both in-patient and outpatient healthcare services through its network, predominantly located in Gujarat. It has aggregate bed capacity of 130 beds and has treated more than 17,000 patients, including 13,000 OPD patients. The group provides a suite of check-ups including haemoglobin check, lipid profile check, renal profile, blood sugar, ESR, MCH etc. It also does complex liver profiles.

The hospital also specializes in nephrology, uro-surgery, and vascular surgery. On the orthopaedics front, the hospital handles joint replacement surgery, post trauma care; apart from obstetrics, gynaecology and neuro and plastic surgery. Many of these are common problems these days with changing lifestyles. The fresh funds will be used for prepayment of debt, purchase of hospital equipment and for working capital needs. The issue is lead managed by Nirbhay Capital Services Private Limited. Link Intime India Private Ltd will be the registrars to the IPO.

IPO details of Aatmaj Healthcare Ltd

The ₹38.40 crore IPO of Aatmaj Healthcare Ltd comprises entirely of a fresh issue of shares. The total SME IPO of Aatmaj Healthcare Ltd entails the fresh issue of 64 lakh shares which at the fixed IPO price of ₹60 per share aggregates to ₹38.40 crore. The stock has a face value of ₹5 per share and retail bidders can bid in minimum lot size of 2,000 share each. Thus, the minimum investment of ₹120,000 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO.

HNIs can invest in 2 lots of 4,000 shares worth ₹240,000 as the bare minimum investment. There is no upper limit for the HNI / NII category. Aatmaj Healthcare Ltd will deploy the funds for repayment / prepayment of loans, working capital needs of the company and for buying equipment for the hospital. Post the IPO, the promoter equity in the company will get diluted from 88.89% to 63.72%. Let us now turn to the final subscription details of the IPO as of the close of subscription on 21st June 2023.

Final subscription status of Aatmaj Healthcare Ltd

Here is the subscription status of the Aatmaj Healthcare Ltd IPO as at close on 21st June 2023. At the close, the issue got subscribed 33.55 times overall.

The issue was only open for retail investors and other non-retail investors. There was a broad quota designed for each of the segments viz. the retail and the non-retail segments. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO.

After removing the 5% allocation to the market makers, the balance number of shares were allocated to retail and the non-retail investors. There was no anchor portion in the issue and hence no anchor allocation made. Normally, anchor portion is reduced from the QIB portion of the IPO. Aatmaj Healthcare Ltd has set aside 3,21,000 shares for the market maker (Rikhav Securities Ltd) for giving two way quotes post listing and ensure liquidity in the counter. This is a necessary part of any SME IPO in India.

Let us now turn to the day-wise break-up of the subscription numbers of Aatmaj Healthcare :td. The oversubscription of the IPO was dominated by the HNI / NIIs followed by the retail investors and the QIB investors in that order. The table below captures the day-wise progression of the subscription status of Aatmaj Healthcare Ltd IPO.

It is clear from the above table that while the retail portion got fully subscribed only on the second day of the IPO, the HNI / NII portion also got fully subscribed only on the second day of the IPO. Even the overall IPO was fully subscribed only on the second day, although most of the traction was seen on the last day. Both the categories of investors saw very good traction and build up of interest on the last day of the IPO. At close, the NII portion was subscribed 36.78 times while the retail was subscribed 30.17 times resulting in overall subscription of 33.55 times.

The IPO of Aatmaj Healthcare Ltd opened for subscription on 19th June 2023 and closed for subscription on 21st June 2023 (both days inclusive). The basis of allotment will be finalized on 26th June 2023 and the refunds will be initiated on 27th June 2023. In addition, the demat credits are expected to happen on 29th June 2023 and the stock is scheduled to list on 30th June 2023 June 2023 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated.

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