Shares of Nephro Care India on Friday made strong listing by gaining 90 per cent at ₹171 against the IPO price of ₹90. The stock rose further to end at ₹179.5, maximum permssible limit of 5 per cent from the listing price, and made an overall gain of 99.5 per cent.
Earlier, the ₹41.26-crore initial public offering of the Kolkata-based company created history as it became the first SME offer to draw bids worth over ₹20,000 crore. The IPO on the NSE-SME platform received an overwhelming response from all category investors and was subscribed by a whopping 666.56 times.
While the qualified institutional buyer portion of the issue was subscribed 245.14 times, the HNI quota was subscribed 1,787.56 times, and the retail investor’s quota was subscribed 634.12 times. The employee portion was subscribed 20.44 times.
The IPO, that comprised a fresh issue of 45.84 lakh shares, hit the market with a price band of ₹85-90. As part of IPO, the company had raised ₹11.14 crore from three anchor investors – CCV Emerging Opportunities Fund-I, Persistent Growth Fund (Varsu India Growth Story Scheme I) and Vikasa India EIF I Fund (Incube Global Opportunities) — by allotting 12.38 lakh shares at ₹90 each.
The company plans to use ₹26.17 crore of net proceeds to establish a multi-speciality healthcare facility, Vivacity Multi Speciality Hospital, at Madhyamgaram in Kolkata. The remaining funds will be used for general corporate purposes.