Global Health Ltd, that operates a network of five hospitals under the brand name Medanta, will open its initial public offering on November 3 and the offer will close on November 7.
There are five Medanta Hospitals in Gurugram, Indore, Ranchi, Lucknow and Patna and one in under construction in Noida.
The price band of the offer has been fixed at Rs 319 to 336 per equity share of face value Rs 2 each. The bids can be made for a minimum of 44 equity shares and in multiples of 44 equity shares thereafter, Medanta Chairman Dr Naresh Trehan said at a media briefing on Tuesday.
The initial public offering comprises a fresh issue aggregating up to 5,000 million and an offer for sale of up to 50,761,000 equity shares by selling shareholders – 50,661,000 equity shares by Anant Investments, an affiliate of The Carlyle Group, and up to 100,000 equity shares by Sunil Sachdeva (jointly with Suman Sachdeva).
The company intends to use the proceeds of the fresh issue for Investment in two of its subsidiaries, GHPPL and MHPL, in the form of debt or equity for repayment and prepayment of borrowings, in full or part, of such subsidiaries, of Rs 3,750 million. The balance amount of the net issue proceeds will be used for general corporate purposes.
The offer is being made through the book building process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957 read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure) Regulations, 2018 and in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50 per cent of the offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, provided that the company and the investor selling shareholder may, in consultation with the BRLMs, allocate up to 60 per cent of the QIB portion to anchor investors on a discretionary basis, in accordance with the SEBI ICDR Regulations, of which one-third shall be reserved for domestic Mutual Funds, subject to valid bids being received from these at or above the anchor investor allocation price, in accordance with the SEBI ICDR Regulations, said the company in a statement.
Further, 5 per cent of the net QIB portion shall be available for allocation on a proportionate basis only to mutual funds, and the remainder will be available for allocation on a proportionate basis to all QIBs (other than anchor investors), including mutual funds, subject to valid bids being received at or above the offer price, it added.
However, if the aggregate demand from mutual funds is less than 5 per cent of the net QIB portion, the balance equity shares available for allocation will be added to the remaining QIB portion for proportionate allocation to QIBs, it said.
The equity shares offered through Red Herring Prospectus are proposed to be listed on the BSE and the NSE, said Global Health Ltd in the statement.