Gujarat Kidney shares pare early gains; end over 8 pc lower in market debut trade

New Delhi, Dec 30 (PTI) Shares of healthcare company Gujarat Kidney and Super Speciality Ltd on Tuesday ended with a discount of over 8 per cent against the issue price of Rs 114.

The stock made its market debut at Rs 120.75, up 5.92 per cent from the issue price on the BSE. During the day, it hit a high of Rs 123.25 and a low of Rs 103. Shares of the firm later ended at Rs 104.65, down 8.20 per cent.

At the NSE, the stock started trading at Rs 120, up 5.26 per cent. But, later it lost momentum and ended at Rs 104.54, down 8.29 per cent.

The company's market valuation stood at Rs 825.09 crore.

The initial public offer of Gujarat Kidney and Super Speciality Ltd received 5.21 times subscription on the final day of share sale on Wednesday last week.

The Rs 251-crore Initial Public Offering (IPO) had a price band of Rs 108-114 per share.

The IPO was entirely a fresh issue of up to 2.2 crore equity shares worth Rs 250.8 crore at the upper end of the price band.

Proceeds from the fresh issue will be used for the proposed acquisition of Parekhs Hospital at Ahmedabad and part-payment of purchase consideration for the already acquired "Ashwini Medical Centre".

Also, funds will be used for setting up a new hospital in Vadodara, buying robotics equipment for the hospital at Vadodara, debt repayment, funding inorganic growth through unidentified acquisitions, and general corporate purposes.

Gujarat Kidney and Super Speciality is one of the regional healthcare companies located in the central region of Gujarat, and operates a chain of mid-sized multi-speciality hospitals, providing integrated healthcare services, with a focus on secondary and tertiary care.

It operates seven multi-speciality hospitals with a total capacity of 490 beds. PTI SUM HVA