Park Medi World shares make muted market debut; decline nearly 4% to IPO price

NEW DELHI: Shares of Park Medi World Ltd, which operates a hospital chain under the Park brand, on Wednesday made a muted market debut, listing at a discount of nearly 4% to the issue price of Rs 162.

The stock was listed at Rs 155.60, a 3.95% discount to the issue price, on the BSE. At the NSE, it started trading at Rs 158.80, down 1.97 per cent.

The company's market valuation stood at Rs 6,949.77 crore.

The initial share sale of Park Medi World Ltd received over 8 times subscription on the final day of bidding on Friday last week.

The Rs 920-crore Initial Public Offering (IPO) had a price band of Rs 154-162 per share.

The IPO comprised a fresh issue of shares worth Rs 770 crore and an offer-for-sale of shares valued at Rs 150 crore by promoter Ajit Gupta.

The company plans to use proceeds worth Rs 380 crore for payment of debt, and Rs 60.5 crore for development of a new hospital and expansion of an existing hospital by its subsidiaries, Park Medicity (NCR) and Blue Heavens, respectively.

A further Rs 27.45 crore is earmarked for the purchase of medical equipment by the company and its subsidiaries, Blue Heavens, and Ratangiri.

The remaining funds will be used for unidentified inorganic acquisitions and general corporate purposes.

Its network of hospitals has 13 multi-super specialty hospitals with eight hospitals in Haryana, one hospital in New Delhi, three hospitals in Punjab and two hospitals in Rajasthan.