Metropolis Healthcare's Rs 1200-crore IPO subscribes over 9% on Day 1

The initial public offering (IPO) of diagnostic firm Metropolis Healthcare Limited (MHL) was subscribed over 9 per cent on the first day of the issue on Wednesday.

By BusinessToday.In  
Wednesday, April 3, 2019

The initial public offering (IPO) of diagnostic firm Metropolis Healthcare Limited (MHL) was subscribed over 9 per cent on the first day of the issue on Wednesday.

Till 5:15 pm, Metropolis Healthcare's IPO has been subscribed 9 per cent, according to data available with National Stock Exchange.

The Rs 1,204 IPO, with a price band of Rs 877-880 per share, will close on April 5. It is the first public issue of current financial year 2019-20.

The MHL's 1.37 crore shares public issue consists of an Offer for Sale (OFS) of 62.7 lakh shares by the promoter Sushil Kanubhai Shah and of around 74.1 lakh shares by CA Lotus Investments.

The offer includes a reservation of up to 3 lakh shares for the employees of the diagnostic firm. The lot size for subscribing to Metropolis Healthcare is 17 shares, meaning investors need to apply a minimum of 17 shares and multiples thereof.

Credit Suisse Securities, Goldman Sachs, HDFC Bank, JM Financial and Kotak Mahindra Capital Company are the lead managers to the offer. April 15 is the tentative date for the listing of the shares of Metropolis Healthcare on Both BSE and NSE.

As per a regulatory filing, Metropolis Healthcare (MHL) raised Rs 530 crore by allotting 60,23,293 equity shares to 26 anchor investors at Rs 880 per unit on Tuesday.

Metropolis Healthcare, a diagnostics company, has a presence across 19 states, with operational network spread across 197 cities in India, according to the company's Red Herring Prospectus filed with markets regulator Sebi.

The company maintains a leadership position in West and South India through its network of 83 clinical laboratories, 1,473 patient touch points and 396 ARCs (assisted referral centres) in the regions.

It offers a range of clinical laboratory tests and profiles used for prediction, early detection, diagnostic screening and confirmation and/or monitoring of the disease.

Metropolis' revenue from operations rose at a CAGR of 16.3 per cent to Rs 643.6 crore from FY16 to FY18, while its profits rose at a CAGR of 15.7 per cent to Rs 109.7 crore.

In its prospectus, the company mentioned objectives of the IPO is to enhance the visibility and brand image of the company as well as to provide a public market for the euity shares in India.

During the nine months period ended December 31, 2018, its revenue from operations was Rs. 559.30 crore and profit was Rs. 88.77 crore, Metropolis Healthcare said. The company is debt free.

(Edited by Rupa Burman Roy)

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