Paras Healthcare IPO opens today: Check GMP and key details

Jio Platform’s IPO is not the only big issue in focus. The Indian primary markets will also watch out for the Paras Healthcare issue. The hospital chain operator’s Rs 1,450 crore issue will open for public bidding today, October 21, and close its subscription window on October 23.

Ahead of its opening, the company raised Rs 625.50 crore through anchor investors. Its issue price band is set at Rs 660 to Rs 693, and investors need to invest a minimum amount of Rs 14,553 per lot in order to participate.

Here’s all you need to know about the Paras Healthcare IPO:

The offer comprises a fresh portion of Rs 500 crore, which will be raised through the issuance of 72.15 lakh fresh equity shares. Shareholders: Dharminder Kumar Nagar and Commelina will offload 1.37 crore shares aggregating to Rs 950 crore through the offer-for-sale route.

Paras Healthcare IPO is being handled by JM Financial, BOFA Securities India, and Nuvama Wealth Management, while MUFG Intime India is the registrar of the offer.

Of the total Rs 500 crore fresh capital, Paras Healthcare will deploy proceeds worth Rs 302.9 crore towards paying off the debt availed by the company. Then, an estimated capital of Rs 54.1 crore will be diverted for investment in the company’s wholly owned subsidiary, PMHPL.

PMHPL operates hospitals of Paras Healthcare in Srinagar, and the company expects to repapay/prepay the borrowing availed by this subsidiary via the fresh capital. The remaining amount will be utilised for general corporate purposes.

In order to participate, retail applicants need to bid for a minimum of 21 shares, comprising one lot, equating to an investment of Rs 14,553, based on the upper end of the share price band. The maximum retail investors can bid for is 13 lots.

The lower cap for small high net worth individuals is fixed at 14 lots, while the upper limit is 66 lots, reflecting an investment of Rs 2,03,742. As for big-HNI, the minimum lot size is fixed at 67.

As per various trackers, the stock of Paras Healthcare is trading in the unlisted markets at a grey market premium (GMP) of Rs 50 or 7.22%, reflecting a likely listing price of Rs 743, based on the upper end of the price band. This translates into a profit of Rs 1,050 per lot.

However, readers must know that GMP is not a regulated method to determine the listing price, is highly vulnerable to market manipulation, and does not guarantee profit.

The issue will close its bidding window on October 23, and its share allotment is expected to be completed by October 26. Bidders shall receive their due shares and refunds by October 27. Paras Healthcare is expected to list on the BSE and NSE on October 28.