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Paras Healthcare IPO Subscribed 15 Percent On Day One
- •The Rs 1,450-crore initial public offering of Paras Healthcare was subscribed 15 percent by the end of the first day of bidding.
- •Retail investors led the demand by subscribing to 69 percent of their allotted portion, while non-institutional investors booked 8 percent.
- •The IPO is commanding a grey market premium of Rs 52 per share, indicating a potential listing gain of around 7.5 percent.
- •The public issue remains open for subscription from October 21 to October 23 with a price band set at Rs 660 to Rs 693 per share.
- •The company plans to use Rs 375 crore from the fresh issue proceeds to repay a portion of its outstanding debt.
Key Questions Answered
The Rs 1,450-crore Paras Healthcare IPO opened for subscription with a price band fixed at Rs 660 to Rs 693 per share and was subscribed 15 percent by 5:00 pm on Day 1. Retail investors subscribed to 69 percent of their portion, while non-institutional investors subscribed 8 percent.
The public issue comprises a fresh issue of shares worth Rs 500 crore and an offer for sale (OFS) of Rs 950 crore. Under the OFS component, promoter Dharminder Kumar Nagar is selling shares worth Rs 300 crore, and Commelina, an affiliate of private equity firm Creador, is offloading shares worth Rs 650 crore.
Paras Healthcare plans to utilize Rs 375 crore from the net proceeds of the fresh issue to repay a portion of its outstanding debt. The remaining funds will be allocated toward general corporate purposes.
