Deepak Parekh-backed Nephro Care India is set to make its Dalal Street debut at the bourses on Friday, July 05. Interestingly, the company cannot list above Rs 171 apiece, up Rs 81 per share over its issue price, even as it commands a grey market premium (GMP) of 175 per share, suggesting an estimated listing price of Rs 265 apiece.
This is because the National Stock Exchange (NSE) on Thursday, announced to introduce an overall capping of 90 per cent on the opening price or equilibrium price discovered during a special pre-open session for initial public offer (IPO) on the NSE Emerge (SME) platform of the exchange.
Putting it simpler, it means that the listing price of a debutant stock on NSE Emerge platform cannot be listed at a premium more than 90 per cent over its issue price but the price may move higher eventually. The move is aimed to curb speculative trading in the SME IPOs and the move comes into effect immediately with this circular.
Nephro Care India becomes the first stock to be listed at the bourses after this circular, which means that it can not list beyond the 90 per cent over its issue price. The company has issued its shares at Rs 90 apiece, meaning that the maximum listing price of stock on the listing can be Rs 171 apiece.
On the other hand, the grey market premium (GMP) for Nephro Care India was last seen at Rs 175 apiece, suggesting a listing pop of nearly 200 per cent for the investors. However, the premium in the unofficial market was recorded at Rs 235 on the date of allotment of shares. Eventually, NSE's circular has dented the listing prospects for the company.
The SME IPO of Nephro Care India was open for bidding June 28 and July 02. The Kolkata-based company had sold its shares in the price band of Rs 85-90 per share with a lot size of 1,600 shares. The company raised 41.26 crore via its primary offering, which entirely included a fresh share sale of Rs 45.84 lakh equity shares.
The initial public offer (IPO) of Nephro Care India became the first SME offer to draw bids worth over Rs 20,000 crore on the NSE Emerge platform. The issue was overall subscribed a stellar 715.85 times.
The issue saw bidding for about 21,554.5 crore during the bidding process. The quota for non-institutional investors was booked nearly a blockbuster 1,788 times. The portion for qualified institutional bidders (QIBs) was subscribed 245 times. The portions reserved for retail investors and employees saw bidding for 634 times and 20 times, respectively during the three-day book building process.
Incorporated in 2014, Nephro Care India is a comprehensive treatment center located in Kolkata, offering a wide range of clinical and lifestyle solutions, as well as renal insufficiency treatment for patients. Nephro Care is supported by expert doctors, experienced paramedical professionals, and a skilled management team.
Corporate Capital Ventures was the sole book running lead manager of the Nephro Care India IPO, while Bigshare Services served as the registrar for the issue. The market maker for the Nephro Care India IPO was SS Corporate Securities.