Shalby Ltd, which runs a multi-specialty hospital chain under the same name, is seeking a valuation of Rs 2,678.64 crore ($415.29 million) from its initial public offering that begins next week.
Shalby has fixed a price band of Rs 245-248 apiece for an IPO size of Rs 504.8 crore ($78.26 million), the company said on Tuesday. The public offering will open on 5 December and close two days later.
The firm has trimmed the issue size by Rs 100 crore. The offering now comprises fresh shares worth Rs 480 crore besides a secondary sale of shares worth Rs 24.8 crore by the promoter Vikram I Shah.
The company had proposed to issue fresh shares worth Rs 580 crore, as per its draft red herring prospectus filed with the regulator.
The IPO will see an 18.84% stake dilution on a post-issue basis. Based on the upper-end of the price band, promoter holding will fall from 97.86% to 79.4% after the IPO.
Promoters will get three years from the date of listing to meet regulatory guidelines for a minimum public float of 25% set for listed firms in India.
VCCircle had first reported in September last year that Shalby was eying an IPO and was hiring merchant bankers.
The firm had earlier explored raising capital via private equity funds, but then decided to list as it would allow it to raise more money.
Edelweiss Financial Services, IDFC Bank and IIFL Holdings are the merchant bankers managing Shalby's IPO.
Shalby will be part of a growing number of healthcare companies that have opted to raise capital via an IPO in recent times.
Bengaluru-based hospital chain Narayana Healthcare raised $95 million through a public offering in December 2015 while oncology chain HealthCare Global Enterprises Ltd went public in March 2016 with a $100-million IPO.
Aster DM Healthcare also filed a draft proposal in July 2016 for a $300-million listing. It, however, postponed its IPO plans and refiled its fresh IPO documents with the Securities and Exchange Board of India (SEBI) in August with a reduced issue size.
Within the broader pharmaceutical and healthcare space, Biocon Ltd’s contract research services arm Syngene International Ltd went public in July 2015. Alkem Laboratories Ltd, India’s fifth-largest drugmaker as per domestic sales, tapped primary markets in December 2015 with a Rs 1,350-crore IPO followed by Warburg Pincus-backed Laurus Labs in November 2016.
Eris Lifesciences is the most recent pharmaceutical company to go public with a Rs 1,741 crore IPO in June this year.
For more details of Shalby’s IPO, click here.