Sangani Hospitals IPO GMP (Grey Market Premium)
Sangani Hospitals IPO worth ₹15.17 crore, comprises entirely of a fresh issue with no offer for sale (OFS) component in the IPO from promoters and early shareholders. Being a book building issue, the price band has been fixed in the range of ₹37 to ₹40 per share and the final price will be discovered in this band via book building. The fresh issue portion of the IPO entails the issue of 37.92 lakh shares which at the upper end of the price band at ₹40 per share is worth ₹15.17 crore. Since there is no OFS component in the IPO, the fresh issue size of ₹15.17 crore is also the size of the overall IPO.
How to apply for the Sangani Hospitals IPO
The stock of Sangani Hospitals Ltd has a face value of ₹10 and bidders can only bid in minimum lot size of 3,000 share each, entailing a minimum investment of ₹120,000 in the IPO at the upper end of the price band of ₹40 per share. That is also the maximum that a retail investor can bid in the IPO. HNIs, NIIs can bid for minimum of 2 lots of 6,000 shares entailing an investment of ₹240,000. The table below captures the lot sizes permissible.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 3000 | ₹1,20,000 |
| Retail (Max) | 1 | 3000 | ₹1,20,000 |
| HNI (Min) | 2 | 6,000 | ₹2,40,000 |
As per the terms of the offer, the number of shares net of the market maker allocation, is being spread across the QIB investors, HNI Investors / NII investors and retail investors. It is a Book Built issue with the price band and the final price will be discovered through book building process. It is captured in the table below.
| Anchor Investor Shares Offered | Nil |
| Market Maker Shares Offered | 1,92,000 shares (5.06%) |
| QIB Shares Offered | 3,60,000 shares (9.49%) |
| NII (HNI) Shares Offered | 16,20,000 shares (42.72%) |
| Retail Shares Offered | 16,20,000 shares (42.72%) |
| Total Shares Offered | 3792,000 shares (100%) |
Like in every SME IPO, Sangani Hospitals IPO also has a market maker. The Market maker typically provides buy and sell quotes post listing to ensure liquidity and low basis risk in the stock. In this case, the makers will be Rikhav Securities Ltd, who will act as the market maker for the SME IPO of Sangani Hospitals Ltd. The company has set aside 192,000 shares for the market maker. The market maker will ensure liquidity post listing to provide easy entry and exit and low basis risk for investors.
The issue opens for subscription on 04th August 2023 and closes for subscription on 08th August 2023 (both days inclusive). The basis of allotment will be finalized on 11th August 2023 and the refunds will be initiated on 14th August 2023. In addition, the demat credits are expected to happen on 16th August 2023 and the stock is scheduled to also list on 17th August 2023 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated.
About Sangani Hospitals IPO GMP
The grey market price (GMP) trading normally starts about 4-5 days prior to IPO opening and continues till the listing date. In the case of Sangani Hospitals Ltd, we already have GMP data for the last 3 days, which should give a reasonable picture of the likely listing.
There are 2 factors that impact the GMP. Firstly, the market conditions have a deep impact on the GMP, especially the liquidity conditions in the market. Secondly, the extent of subscription for the IPO has a deep impact on the GMP as it is indicative of investor interest in the stock. GMP can also technically be in negative, which means the stock would list at a discount to the issue price.
There is one small point to remember here. The GMP is not an official price point, just a popular informal price point. However, in most cases, it has been observed to be a good informal gauge of demand and supply for the IPO. Hence it does give a broad idea of how the listing is likely to be and how the post-listing performance of the stock would be.
How has the Sangani Hospitals GMP panned out in last few days
GMP tends to be a good mirror of the real stock story. More than the actual price, it is the GMP trend over time that gives insights about which direction the wind is blowing. Here is a quick GMP summary for Sangani Hospitals IPO for which the data is available.
| Date | GMP |
|---|---|
| 17-Aug-2023 | ₹1 |
| 16-Aug-2023 | ₹1 |
| 15-Aug-2023 | ₹1 |
| 14-Aug-2023 | ₹1 |
| 13-Aug-2023 | ₹1 |
| 12-Aug-2023 | ₹1 |
| 11-Aug-2023 | ₹1 |
| 10-Aug-2023 | ₹1 |
| 9-Aug-2023 | ₹1 |
| 8-Aug-2023 | ₹1 |
| 7-Aug-2023 | ₹1 |
| 6-Aug-2023 | ₹1 |
| 5-Aug-2023 | ₹1 |
| 4-Aug-2023 | ₹1 |
| 3-Aug-2023 | ₹1 |
| 2-Aug-2023 | ₹1 |
In the above case, the GMP trend shows that the grey market premium has opened at around ₹1, but has since stayed at ₹1 on the second day and the third day too for which GMP data is available. Of course, we have to await for the actual subscription numbers to flow in when the issue opens for subscription on 04th August 2023 and also watch the progress, as that would have a very significant impact on the GMP. In the past, stocks which got oversubscribed in the IPO also saw a very robust positive shift in the grey market pricing. For a start, Sangani Hospitals Ltd has shown good traction in the grey market.
If you consider the upper end of price band of the IPO of Sangani Hospitals Ltd at ₹40, then the likely listing price is being signalled at around ₹41 per share as per the GMP indicator on 04th August 2023. This is dynamic and keeps changing. One data point to track will be the subscription update on the stock as that would chart the GMP course.
The GMP of ₹1 on the upper end of the book built IPO price of ₹40 indicates a listing premium of a very moderate 2.5% for Sangani Hospitals Ltd over the listing price. That pre-supposes a listing price of approximately ₹41 per share, when Sangani Hospitals Ltd lists on 17th July 2023. Of course, these are approximations, so you must keep a margin of safety. One needs to observe the trend of GMP closely as that gives the best hints on listing status. Look at the time series trend than on numbers.
Read What you must know about Sangani Hospitals IPO
Brief on Sangani Hospitals Ltd
Sangani Hospitals Ltd, is an SME IPO on the NSE which is opening for subscription on 04th August 2023. Sangani Hospitals Ltd, was incorporated in 2021 but the journey had begun in 2001 itself. It is a multi-specialty hospital based in Keshod in Gujarat. Sangani Hospital was promoted by Dr Ajay Sangani and his brother Dr Rajeshkumar Sangani. It currently has two multispecialty hospitals based out of Keshod and Veraval; both in the state of Gujarat. It has specialized departments for gynaecology, obstetrics, orthopedy, joint replacement, general surgery, uro-surgery, trauma unit, dental, and laparoscopic surgery.
Sangani Hospital at Keshod, Junagadh is a 36-bed multi-speciality hospital with primary, secondary, and tertiary care facilities. The location of the hospital makes it easily accessible to nearly 54 adjacent small villages. Sangani Hospital has been rated as one of the topmost hospitals in the district of Junagadh. They have currently applied for NABH registration. The other hospital; Sangani Super Speciality Hospital at Veraval is a 32-bed multi-speciality hospital which has already cleared NABH (National Accreditation Board for Hospitals). It has significant focus on Tertiary care facilities and is located just 45 km away from Sangani Hospital, Keshod. Sangani Super Speciality Hospital at Veraval is well equipped with medical and surgical specialities and backed by a highly qualified and experienced team of doctors.
The fresh issue portion will be used to fund capex for its Keshod and its Veraval multi-speciality hospitals. The issue will be lead managed by Unistone Capital Private Ltd while Bigshare Services Private Ltd will be the registrars to the SME IPO of Sangani Hospitals Ltd.
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