GPT Healthcare IPO Subscribed 8.52 times

About the GPT Healthcare IPO

The stock of GPT Healthcare IPO has a face value of ₹10 per share and the price band for the book building IPO has been set in the range of ₹177 to ₹186 per share. GPT Healthcare IPO is a combination of a fresh issue of shares and offer for sale (OFS) component. The fresh issue tends to bring fresh funds into the company, but is also EPS and equity dilutive. On the other hand, OFS is just a transfer of ownership. The fresh issue portion of the IPO of GPT Healthcare Ltd comprises the issue of 21,50,537 shares (21.51 lakh shares approximately), which at the upper price band of ₹186 per share will translate into a fresh issue size of ₹40 crore. The offer for sale (OFS) portion of the IPO of GPT Healthcare Ltd comprises the sale of 2,60,82,786 shares (260.83 lakh shares approximately), which at the upper price band of ₹186 per share will translate into an OFS size of ₹485.14 crore.

Out of the OFS size of 2,60,82,786 shares, the investor shareholder(Banyan Tree Growth Capital LLC) will offer the entire lot of shares worth Rs485.14. Promoter shareholders will not be offering any shares in the offer for sale (OFS). Therefore, the total IPO of GPT Healthcare Ltd will comprise of a fresh issue and an OFS of 2,82,33,323 shares (282.33 lakh shares approximately) which at the upper end of the price band of ₹186 per share aggregates to total issue size of ₹525.14 crore. The IPO of GPT Healthcare Ltd will be listed on the NSE and the BSE on the IPO mainboard. The fresh funds will be used to repay / prepay some of the high-cost borrowings of the business. Promoters currently hold 67.34% in the company, which will get diluted post the IPO to 65.58%. The IPO will be lead managed by JM Financial, while Link Intime India Private Ltd will be the registrar to the IPO.

How subscriptions evolved in the IPO period?

While the QIB portion and the HNI / NII portion picked up traction on the last day, the overall journey was quite quiet and tepid for the retail investors. In fact, the QIB portion got fully subscribed only on the last day of the IPO while the retail portion got subscribed on the second day and the HNI portion got fully subscribed only on the last day of the IPO. The overall IPO also saw the subscription book filling up only on the last day of the IPO. The IPO was kept open for a total period of 3 consecutive trading days. While the retail portion did start off strong, the eventual traction was largely moderate; next to the QIB and the HNI / NII portion respectively. Here is the day-wise progress in IPO subscription of the total available quota. The available QIB quota in the table below representing the oversubscription; is net of the anchor allocation of shares, done one working day prior to the opening of the IPO. Final number of shares as per exchange filing is considered here.

As can be seen from the above table, the overall IPO got 8.52 times subscribed at the close of the third and final day of the IPO on 26th February 2024. Here is a quick look at how the various categories saw traction on the last day of the IPO.

• The QIB portion got 0.00 times subscribed at the end of the first day of the IPO. However, on the last day of the IPO, the subscription moved from 0.19X to 17.30X.
   
• The HNI / NII portion got 0.18 times subscribed at the end of the first day of the IPO. However, on the last day of the IPO, the subscription moved from 0.80X to 11.02X.
   
• Retail portion got 0.68 times subscribed at the end of the first day of the IPO. However, on the third and final day of the IPO, the subscription moved from 1.26X to 2.44X.
   
• The overall IPO got 0.38 times subscribed at the end of the first day of the IPO. However, on third and final day of the IPO, overall subscription moved from 0.85X to 8.52X.

Overall, the IPO of GPT Healthcare Ltd saw the maximum traction only on the last day of the IPO, after seeing a rather tepid run on the first two days.

Rapid update on the overall IPO response

The IPO saw fairly tepid response on the Day-1 and Day-2, with most of the action visible only on Day-3 of the IPO, as is normally the case. However, the IPO did close with relatively modest to strong subscription numbers at the close of Day-3. In fact, the IPO of GPT Healthcare Ltd got fully subscribed only on the last day of the IPO. As per the combined bid details put out by the BSE at the close of Day-3, GPT Healthcare Ltd IPO was subscribed 8.52X overall, with best demand coming from the QIB segment, followed by the HNI / NII segment and the Retail segment in that order.

In fact, the institutional QIB segment and the HNI / NII segments saw some very good traction on the last day. The HNI portion did do well and a lot of the surge of funding applications and corporate applications did come in on the last day of the IPO. Retail portion was relatively less aggressive, although it was fully subscribed on Day-1 of the IPO itself, but subsequent traction was a tad more cautious. Firstly, let us look at the details of overall allocation of shares to various categories of investors. It may be noted that in the final allocation of shares, minor variations are normal as part of intra-segment adjustments. These, however, do not impact the total number of shares materially.

Having understood the allocation of shares across various categories, Let us look at how the subscription data played out for the IPO at an overall level and at a more granular level.

As of close of 26th February 2024, out of the 197.63 lakh shares on offer in the IPO (net of the anchor allotment shares), GPT Healthcare Ltd saw bids for 1,684.28 lakh shares. This implies an overall subscription of 8.52X at a macro level. The granular break-up of subscriptions was in favour of the QIB investors followed by the HNI / NII investors and the Retail investors in that order. 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. Both the QIB and the NII bids picked momentum on the last day and added to its heft of the previous days. Here are the details of the category-wise subscription.

Data Source: BSE

Subscription status of QIB Portion

On 21st February 2024, GPT Healthcare Ltd completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated through the process of book building. A total of 84,69,996 shares were allotted to the anchor investors. The allocation was done at the upper IPO price band of ₹186 per share (including premium of ₹176 per share) which resulted in an overall allocation of ₹157.54 crore. The anchors absorbed 30% of the total issue size of ₹525.14 crore.  It may be noted that half the anchor portion is locked for 1 month from the date of allotment i.e. up to March 28th, 2024. The other 50% is locked for 3 months from the date of allotment i.e., up to May 27th 2024.

The QIB portion (net of anchor allocation as explained above) had a quota of 56.47 lakh shares of which it has got bids for 976.84 lakh shares at the close of Day-3, implying a subscription ratio of 17.30X 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 GPT Healthcare Ltd IPO subscription overall, the actual demand did turn to be quite robust for the IPO.

Subscription status of HNI / NII Portion

The HNI portion got subscribed 11.02X (getting applications for 466.54 lakh shares against the quota of 42.35 lakh shares). That is a relatively strong 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 visible as the overall HNI / NII portion added to its heft on the last day of the IPO. Apart from the QIB portion, even HNIs saw good traction on the last day.

Now the NII/HNI portion is reported in two parts viz. bids below ₹10 lakhs (S-HNI) and bids above ₹10 lakhs (B-HNI). The bids above the ₹10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above ₹10 lakh bid category got subscribed 11.98X while the below ₹10 lakh bid category (S-HNIs) got subscribed 9.09X. This is just in the form of additional information and is already part of the overall HNI bids explained in the previous para.

Subscription status of Retail Individuals

The retail portion was subscribed just 2.44X at the close of Day-3, showing relatively strong appetite. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 98.82 lakh shares on offer, valid bids were received for 240.89 lakh shares, which included bids for 214.46 lakh shares at the cut-off price. The IPO is priced in the band of (₹177 to ₹186 per share) and has closed for subscription as of the close of Monday, 26th February 2024.