Medistep Healthcare IPO Sees Robust 35.92x Oversubscription on Day 2
Medistep Healthcare's IPO has been oversubscribed 35.92 times on the second day of bidding. The Rs 16.10 crore fixed price issue, priced at Rs 43 per share, received bids for 12.77 crore shares against 35.55 lakh shares on offer. Retail investors led the demand with 58.75 times subscription, while non-institutional investors subscribed 13.05 times. The IPO, open from August 8-12, has a grey market premium of Rs 10, suggesting a potential 23.26% listing gain. Medistep Healthcare, incorporated in June 2023, manufactures sanitary pads, energy powder, and pharmaceutical products.
*this image is generated using AI for illustrative purposes only.
Medistep Healthcare's initial public offering (IPO) has garnered significant investor interest, achieving an impressive 35.92 times oversubscription on the second day of bidding. The strong response underscores the market's enthusiasm for this newly incorporated healthcare company.
Subscription Details
The IPO, which opened on August 8 and is set to close on August 12, has seen bids for 12.77 crore shares against the 35.55 lakh shares on offer. This overwhelming response has been driven primarily by retail investors, who have subscribed 58.75 times their allotted portion. Non-institutional investors have also shown considerable interest, with their segment oversubscribed by 13.05 times.
IPO Specifics
| Item | Detail |
|---|---|
| Issue Size | Rs 16.10 crore |
| Issue Type | Fixed Price Issue |
| Share Price | Rs 43.00 per share |
| Grey Market Premium | Rs 10.00 |
The entire issue comprises fresh shares, with no offer for sale component. The grey market premium of Rs 10.00 suggests a potential listing price of Rs 53.00, indicating a 23.26% premium over the issue price.
Key Dates
| Event | Date |
|---|---|
| IPO Period | August 8-12, 2023 |
| Share Allotment | August 13, 2023 |
| Tentative Listing | August 18, 2023 on NSE SME platform |
About Medistep Healthcare
Incorporated in June 2023, Medistep Healthcare is a manufacturer of sanitary pads, energy powder, and pharmaceutical products. Despite being a relatively new entrant in the market, the company has managed to attract significant investor attention with its IPO.
Use of Proceeds
The company plans to utilize the IPO proceeds for:
- Capital expenditure for plant and machinery
- Meeting working capital requirements
- General corporate purposes
The strong oversubscription, particularly from retail investors, suggests a high level of confidence in Medistep Healthcare's business model and growth prospects. However, as with all investments, potential investors should conduct their own research and consider their risk appetite before making investment decisions.
As the IPO enters its final days, all eyes will be on the final subscription figures and the eventual listing performance of Medistep Healthcare on the NSE SME platform.
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