Narayana Hrudayalaya: Anchor investors

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Healthcare firm Narayana Hrudayalaya Ltd on Wednesday raised Rs.184 crore through anchor investors ahead of its initial public offering (IPO) on Thursday.

The anchor book is that portion of the IPO which bankers allot to institutional investors on a discretionary basis. Anchor book subscription opens one day ahead of the IPO and is an indicator of institutional investor interest in a public issue.

Narayana Hrudayalaya raised Rs.184 crore by selling shares to institutional investors at Rs.250 per share, the upper end of its IPO price band of Rs.240-250 per share.

Foreign institutional investors, including Fidelity, Government of Singapore’s GIC and Harvard Management Co., bought the firms share.

Domestic institutions which subscribed to the anchor book include mutual funds from asset managers such as Birla Sunlife, SBI, ICICI Prudential, Reliance Capital and HDFC Mutual Fund.

The firm is looking to raise Rs.613 crore through its IPO. The offer closes on 21 December. The IPO is an offer for sale from existing investors and the firm will not be raising any money to invest in its business.

JP Morgan and Pinebridge Investments, which hold 10.91% and 11.2%, respectively, in Narayana Hrudayalaya, are looking to dilute 4% each of their holding. UK’s development finance institution CDC is also an investor in Narayana Hrudayalaya and holds 5.88% stake.

In 2014-15, Narayana Hrudayalaya reported consolidated revenue of Rs.1,371.5 crore compared with Rs.1,117.5 in the previous year. The company reported a loss of Rs.10.8 crore in 2014-15 compared with a profit of Rs.31.7 crore an year ago.

Axis Capital Ltd, IDFC Securities and Jefferies are managing the IPO.