Capital market regulator SEBI has given its go ahead to Narayan Hrudayalaya IPO. The regulator issued its final observation regarding the IPO on 27 November. SEBI observation amounts to the regulatory approval to bring an IPO.
The Bengaluru-based healthcare service provider, which specializes in the treatment of heart diseases, filed its draft red herring prospectus (DRHP) with SEBI on 29 September through lead merchant bank Axis Capital Limited. Narayan Hrudayalaya operates India’s third-largest hospital chain under Narayana Health brand.
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According to the draft prospectus, Narayan Hrudayalaya IPO will only comprise of offer for sale (OFS) and thus, the company will not receive any proceeds from the public issue. The IPO will involve sale of 20.4 million shares by existing shareholders.
Impressive list of backers
The Devi Shetty-promoted company has a strong track record in providing quality medical treatment at affordable rates and this history has won it a number of impressive investors. These include JP Morgan, CDC Group, and Kiran Mazumdar Shaw.
Some of the existing investors in Narayan Hrudayalaya including JP Morgan, Ambadevi, Ashoka Holdings, Dr. Devi Prasad Shetty, and Shakuntala Shetty will be selling their shares. The biggest chunk of shares will be offloaded by JP Morgan which plans to sell 8.17 million shares. Ashoka Holdings plans to sell 6.28 million shares while 2.04 million shares will be offered by Dr. Devi Prasad Shetty and Shakuntala Shetty each.
Following an investment in December 2014, CDC Group is another private equity investor in the company while Kiran Mazumdar Shaw also holds a substantial position. Neither CDC nor Kiran Mazumdar Shaw will be participating in the Narayan Hrudayalaya IPO.
Narayan Health is the latest IPO candidate in the healthcare industry. Another Bengaluru-based cancer specialist HealthCare Global Enterprises (HCG) received SEBI nod to bring IPO last month, while the public issue of diagnostic and pathology laboratories chain Dr Lal Path Labs starts 8 December.