The scrip got listed at a premium of 19% at Rs 401 on the National Stock Exchange (NSE) and at Rs 398.15 on BSE over its issue price of Rs 336 apiece.
Even after the listing, the company extended its gains by another 5% to Rs 417 on BSE, which pushed the entire gains to more than 24% over the IPO price.
However, analysts remain divided over the issue after the strong listing pop. Some of them suggest it to be a long-term bet, whereas others say that one should exit the counter, taking money off the table.
Nyati, Founder at Tradingo said with the long-term structural factors supporting growth, renewed impetus from PMJAY, and the government’s focus on the sector, the healthcare delivery market is expected to grow at 13–15%.
The issuer has good patient volumes and cost efficiency, and its financial profile also shows an increasing trend, he added.
“Finally, the issue was fairly priced. Those who applied for listing gains can maintain a stop loss of Rs 380,” Nyati advised.
Global Health is one of the largest private multi-speciality tertiary care providers operating in North and East India. It has a network of five hospitals under ‘Medanta’ brand in Gurugram, Indore, Ranchi, Patna and Lucknow.
Manoj Dalmia, Founder and Director, Proficient Equities said that the issue surprised investors with a better-than-expected listing as valuations were attractive for the issue based on its financial performance.
“Investors may consider the counter for the long term, considering the prospects of healthcare sector growth in India,” he said.
The company’s Rs 2,206-crore IPO was sold in the range of Rs 319-336 per share and received a mildly positive investor response, garnering over 9.5 times bids between November 03-07.
The quota reserved for qualified institutional buyers (QIBs) was subscribed 28.64 times while those reserved for non-institutional investors (NIIs) and retailers were subscribed 4.02 times and 88%, respectively.
Arafat Saiyed, Senior Research Analyst,
Securities suggested investors to book partial profits and keep the remaining portion for the longer run.
Ravi Singhal, CEO, GCL Securities said Global Health listing has been better than expected. “However, investors should exit the counter considering the high level of competition.”
is his top bet from the sector.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
