Medplus Health Services IPO - Subscription Day 1

5paisa Research Team 5paisa Research Team 11th December 2022 - 08:38 pm

The Rs.1,398.30 crore IPO of Medplus Health Services, consisting of a fresh issue of Rs.600 crore and an offer for sale (OFS) of Rs.798.30 crore, saw steady response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the end of Day-1, Medplus Health Services IPO was subscribed 0.70X overall, with demand coming mainly from the retail segment. The issue will close for subscription on Wednesday, 15th December.

As of close of 13th December, out of the 125.75 lakh shares on offer in the IPO, Medplus Health Services saw bids for 87.63 lakh shares. This implies an overall subscription of 0.70X or 70%. The granular break-up of subscriptions was dominated by the retail investors with QIB response and HNI response very marginal on the first day.

Normally, it is only on the last day of bidding, the NII bids and the QIB bids build up substantial momentum. First day response may not be too relevant for Medplus Health Services.

Medplus Health Services IPO Subscription Day 1

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.06 Times
Non Institutional Investors (NII)	0.06 Times
Retail Individuals	1.29 Times
Employees	0.76 Times
Overall	0.70 times

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 10th December, Medplus Health Services did an anchor placement of 52,51,111 shares at the upper end of the price band of Rs.796 to 36 anchor investors raising Rs.417.99 crore, representing 29.9% of the total issue size.

The list of QIB anchors included a number of marquee international names like Abu Dhabi Investment Authority, Blackrock, Fidelity, Nomura, Goldman Sachs, Morgan Stanley, Wasatch International, Carmignac and Asian Tiger Fund. Domestic investors in the anchor placement included SBI Mutual Fund, Kotak MF, Nippon India MF, Aditya Birla MF, DSP MF, Motilal Oswal MF, SBI Life, ICICI Prudential Life, Edelweiss Alternate Fund etc.

The QIB portion (net of anchor allocation as explained above) has a quota of 35.73 lakh shares of which it has got bids for 2.27 lakh shares at the close of Day-1, implying 0.06X or 6% subscription for QIBs at the end of Day-1. However, QIB bids typically get bunched on the last day but the solid institutional response in the anchor placement shows that there is institutional appetite for the IPO.

HNI / NII Portion

The HNI portion got subscribed 0.16X or 16% (getting applications for 4.35 lakh shares against the quota of 26.79 lakh shares). This is a tepid start for Day-1 but this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO only.

Retail Individuals

The retail portion was subscribed a relatively strong 1.29X at the close of Day-1, showing building retail appetite; as has been the general trend with smaller sized IPOs. It must be noted that retail allocation is 35% in this IPO.

For retail investors; out of the 62.52 lakh shares on offer, valid bids were received for 80.46 lakh shares, which included bids for 62.57 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.780-Rs.796) and will close for subscription on 15th December 2021.

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