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HCG IPO opens with price band of Rs 205 – Rs 218

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Fresh issue of up to 11.6 million equity shares, offer for Sale of up to 18.2 million equity shares

HealthCare Global Enterprises (HCG), cancer care provider will enter the capital markets with its initial public offering (IPO) from March 16, 2016 to March 18, 2016, with a price band of Rs 205 – Rs 218 per equity share of face value of Rs 10 each. The Anchor Investors shall bid one working day prior to the bid/Offer opening date i.e. on Tuesday, March 15, 2016.

The IPO consists of a fresh issue of up to 11.6 million equity shares by the company and an offer for sale of up to 18.2 million equity shares by existing shareholders as mentioned in the Red Herring Prospectus dated March 4, 2016 (RHP).

The offer is being made through the Book Building Process wherein at least 75 per cent of the offer will be allotted on a proportionate basis to Qualified Institutional Buyers (QIBs). The company, in consultation with the Investor Selling Shareholders and BRLMs, may allocate up to 60 per cent of the QIB Portion to Anchor Investors at the Anchor Investor Offer Price on a discretionary basis, out of which one-third shall be reserved for domestic Mutual Funds only. Additionally, five per cent of the QIB Portion (excluding the Anchor Investor Portion) will be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion will be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid bids being received at or above the offer price.

Further, not more than 15 per cent of the offer will be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10 per cent of the Offer will be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All potential investors (except Anchor Investors) shall participate in this offer only through the Application Supported by Blocked Amount (ASBA) process.

The Company proposes to utilise the net proceeds of the fresh issue towards purchase of medical equipment, investment in IT software, services and hardware, pre-payment of debt and general corporate purposes.

Kotak Mahindra Capital Company, Edelweiss Financial Services, Goldman Sachs (India) Securities Private, IDFC Securities, IIFL Holdings and Yes Bank are the Book Running Lead Managers while Karvy Computershare is the Registrar to offer.

The offer would constitute up to 35.03 per cent of the Company’s post-offer paid-up equity share capital. The equity shares are proposed to be listed on the BSE and the NSE.

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