Now Reading: ABH Healthcare IPO 83% subscribed on day three at Rs 102
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ABH Healthcare IPO 83% subscribed on day three at Rs 102
ABH Healthcare Ltd's initial public offering was 83 per cent subscribed at the end of day three. The retail portion stood at 73 per cent booked, the non-institutional investor portion at 49…
ABH Healthcare Ltd's initial public offering was 83 per cent subscribed at the end of day three. The retail portion stood at 73 per cent booked, the non-institutional investor portion at 49 per cent, and the qualified institutional buyer portion at 8.37 times. The company has received bids for 28.6 lakh shares against 34.3 lakh shares on offer.
The IPO, which runs until 27 August, has a price band of Rs 96 to Rs 102 per share. The lot size is 1,200 shares. Allotment is expected on 28 August, with listing on the NSE SME platform slated for 1 September. The grey market premium is zero, meaning shares trade at the issue price with no premium or discount.
The company operates the 150-bed Anil Baghi Hospital in Punjab and offers treatment across 25 specialities. It plans to use Rs 17 crore of the Rs 34.3-crore fresh issue to repay debt and Rs 5 crore for working capital. Revenue rose from Rs 41.38 crore in FY24 to Rs 52.51 crore in FY26, while profit after tax more than tripled to Rs 5.64 crore.
Indian Opinion Analysis
SME IPOs like ABH Healthcare's occupy a distinct regulatory space: they are less tightly scrutinised than main-board listings but still require a minimum market capitalisation of Rs 25 crore and a track record of three years. The absence of a grey market premium, GMP of zero, indicates that secondary-market investors see no immediate arbitrage, which is typical for small issues where retail demand is tepid. The company's plan to use Rs 17 crore to repay debt is the most concrete signal: the hospital's interest burden will drop, directly improving net margins from the current 10.7 per cent. What matters now is the final subscription figure at Thursday's close, if the retail portion crosses 100 per cent, listing-day volatility shrinks, if it stays below, the issue risks devolvement on the underwriters. The NSE SME platform lists the stock on 1 September.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
