Medplus Health Services IPO - Subscription Day 3

5paisa Research Team 5paisa Research Team 15th December 2021 - 06:14 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 slow response on Day-1 and Day-2 of the IPO. However, as per the combined bid details put out by the BSE at the end of Day-3, Medplus Health Services IPO was subscribed 52.59 times overall, with demand coming mainly from QIB and HNI segments. The issue has closed for subscription on Wednesday, 15th December.

As of close of 15th December, out of the 125.75 lakh shares on offer in the IPO, Medplus Health Services saw bids for 6,613.67 lakh shares. This implies an overall subscription of 52.59 times. The granular break-up of subscriptions was dominated by the QIB investors and the HNI investors.

It was only on the last day of bidding that the NII bids and the QIB bids build up substantial momentum. First couple of days response were not too relevant for Medplus Health Services.

Medplus Health Services IPO Subscription Day 3

Category	Subscription Status
Qualified Institutional Buyers (QIB)	111.90 Times
Non Institutional Investors (NII)	85.33 Times
Retail Individuals	5.24 Times
Employees	3.15 Times
Overall	52.59 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 3,997.61 lakh shares at the close of Day-3, implying 111.90 times subscription for QIBs at the end of Day-3. QIB typically got bunched on the last day, although the solid institutional response in the anchor placement was indicative of the strong institutional appetite for the IPO.

HNI / NII Portion

The HNI portion got subscribed 85.33 times (getting applications for 2,286.44 lakh shares against the quota of 26.79 lakh shares). This is a strong response for Day-3 and 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 sound 5.24 times at the close of Day-3, showing strong 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 327.45 lakh shares, which included bids for 247.82 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.780-Rs.796) and has closed for subscription on 15th December 2021.

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