Sangani Hospitals IPO Final Subscription Status

Sangani Hospitals IPO closed on Tuesday, 08th August 2023. The IPO had opened for subscription on 04th August 2023. Let us look at the final subscription status of Sangani Hospitals Ltd at the close of subscription on 08th August 2023. The price band for the IPO was fixed at ₹37 to ₹40 and the stock has a face value of ₹10.

About the Sangani Hospitals IPO

Sangani Hospitals IPO worth ₹15.17 crore, comprises entirely of a fresh issue with no offer for sale (OFS) component. The Fresh Issue portion of Sangani Hospitals Ltd entails the issue of 37.92 lakh shares at which at the upper band of the price range at ₹40 per share aggregates to ₹15.17 crore. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 3,000 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 / NIIs can invest in a minimum of 2 lots of 6,000 shares worth ₹240,000 as the bare minimum investment. There is no upper limit for the HNI / NII category or even for the QIB category. Sangani Hospitals Ltd will deploy the funds for undertaking capital expenditure at its Keshod Hospital and the Veraval Hospital, both located in the state of Gujarat. Post the IPO, the promoter equity in the company will get diluted from 100%. The issue is lead managed by Unistone Capital Private Ltd, while Bigshare Services Private Ltd will be the registrars to the issue. Let us now turn to the final subscription details of the IPO as of the close of subscription on 08th August 2023.

Final subscription status of Sangani Hospitals IPO

Here is the subscription status of the Sangani Hospitals IPO as at close on 08th August 2023.

The issue was open for retail investors and for the HNI / NIIs and other non-retail investors. There was a broad quota designed for each of the segments viz. the retail and the HNI NII and other non-retail participants. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO. A total of 1,92,000 shares were allocated as market maker portion to Rikhav Securities Ltd, which will act as a market maker to provide bid-ask liquidity on the counter post listing. Market maker action not only improves liquidity in the counter but also reduces the basis risk.

As can be seen, from the above table, there is no allocation made to the anchor investors in this IPO. Normally, when anchor portion is available, the allocation is done the day before the IPO opens and the anchor portion is adjusted to the overall QIB quota. Normally, the anchor allocation is done at the upper end of the book building price band and anchor investors cannot be allocated shares at a discount to the regular IPO price.

How subscription built up for Sangani Hospitals IPO

The oversubscription of the IPO was dominated by the Retail investors followed by the QIB investors and then the HNI / NIIs followed in that order. The table below captures the day-wise progression of the subscription status of Sangani Hospitals Ltd IPO.

It is clear from the above table that while the retail portion and the QIB portion got fully subscribed on the first day of the IPO itself, while the HNI / NII portion got fully subscribed only on the third and final day of the IPO. However, the overall IPO was fully subscribed on the second day itself although most of the traction was seen on the last day. All the 3 categories of investors viz., HNIs / NIIs, retail and QIB categories saw very moderate traction and build-up of interest on the last day of the IPO. There is an allocation of 192,000 shares to Rikhav Securities Ltd for market making. The market maker offers two way quotes on the stock post listing using the inventory of shares and ensures that investors do not get overly worried about liquidity and basis risk in the early stages.

Sangani Hospitals IPO opened for subscription on 04th August 2023 and closed for subscription on 08th August 2023 (both days inclusive). The basis of allotment will be finalized on 11th August 2023 and the refunds will be initiated on 14th August 2023. In addition, the demat credits are expected to happen on 16th August 2023 and the stock is scheduled to list on 17th August 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.

Read about Sangani Hospitals IPO

A quick word on Sangani Hospitals Ltd and the SME IPO

Sangani Hospitals Ltd, is an SME IPO on the NSE which had opened for subscription on 04th August 2023. The company, Sangani Hospitals Ltd, was incorporated in 2021 but the journey had begun in 2001 itself. Sangani Hospitals is a multi-specialty hospital based in Keshod in Gujarat. Sangani Hospital was promoted by Dr Ajay Sangani and his brother Dr Rajeshkumar Sangani. It currently has two multispecialty hospitals based out of Keshod and Veraval; both in the state of Gujarat. It has specialized departments for gynaecology, obstetrics, orthopedy, joint replacement, general surgery, uro-surgery, trauma unit, dental, and laparoscopic surgery.

Sangani Hospital at Keshod, Junagadh is a 36 beds multi-speciality hospital. It has primary, secondary, and tertiary care facilities. The location of the hospital makes it easily accessible to nearly 54 adjacent small villages. Sangani Hospital has been rated as one of the topmost hospitals in the district of Junagadh. They have currently applied for NABH registration. The other hospital; Sangani Super Speciality Hospital at Veraval is a 32-bed multi-speciality hospital which has already cleared NABH (National Accreditation Board for Hospitals). It has significant focus on Tertiary care facilities and is located just 45 km away from Sangani Hospital, Keshod. Sangani Super Speciality Hospital at Veraval is well equipped with medical and surgical specialities and backed by a highly qualified and experienced team of doctors.