In a recent development, Maitreya Medicare's public issue, valued at Rs 14.89 crore, has witnessed substantial investor interest, marking it as the fifth public issue this year to cross a subscription rate of over 400 times. The company operates a 125-bed capacity multispeciality hospital in Surat. The final day of bidding saw the purchase of 54.2 crore equity shares, with high net worth individuals and retail investors notably active, buying shares at rates significantly above their allotted quota.
This robust response from investors also led to a 73% premium in the grey market. The public issue's success follows similar outcomes from Kahan Packaging (NYSE:PKG), Srivari Spices and Foods, Madhusudan Masala, and Anlon Technology Solutions earlier this year.
Maitreya Medicare has outlined its plans for the proceeds from this fresh issue component. The company intends to allocate Rs 7.5 crore towards building a new hospital in Valsad, which is projected to have a capital expenditure of Rs 18 crore. The remaining funds are earmarked for various purposes including internal accruals, borrowings, redeeming Rs 1 crore worth of non-convertible redeemable preference shares, Rs 5 crore for working capital requirements, and the rest for general corporate purposes.
The allotment of IPO shares is set to be finalized by Monday (November 6), with equity shares being transferred to successful investors by Wednesday (November 8). Trading will commence on NSE Emerge with a price band of Rs 78-82 per share from Thursday (November 9).
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