Diagnostic chain Metropolis Healthcare IPO subscribed 9 pct on first day of bidding

The initial public offering (IPO) of diagnostic chain Metropolis Healthcare was subscribed 9 per cent on the first day of bidding on Wednesday. The Rs 1,200-crore IPO received bids for 7,01,284 shares as against the total issue size of 76,61,802 shares, according to the latest data on the National Stock Exchange.

The category reserved for non-institutional investors has subscribed 9 per cent, while that for retail individual investors was subscribed 25 per cent. The price range for the offer, which would close on Friday, has been fixed at Rs 887-880 per share.

On Tuesday, the firm had raised Rs 530 crore from anchor investors. The diagnostic chain announced the IPO last week. Promoter Sushil Shah will offload 62,72,335 shares, while investor CA Lotus Investments, a part of Carlyle Group, will sell 74,12,760 shares through the IPO, which has reserved 3 lakh shares for employees.

The Carlyle Group owns 31 per cent stake in the company and the promoters the rest, which would be diluted by 10-12 per cent through the IPO. JM Financial, Credit Suisse, Goldman Sachs, HDFC Bank and Kotak Mahindra Capital are the lead managers for the offer.

As of December 31, 2018, the laboratory network of Metropolis Healthcare consisted of 115 clinical laboratories.

(With inputs from agencies.)