Unihealth Consultancy IPO GMP (Grey Market Premium)

Unihealth Consultancy IPO worth ₹56.55 crore comprises entirely of a fresh issue with no offer for sale (OFS) component in the IPO from promoters and early shareholders. The price band has been fixed in the range of ₹126 to ₹132 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 42.84 lakh shares which at the upper end of the price band at ₹132 is worth ₹56.55 crore. Since there is no OFS component in the IPO, the fresh issue size of ₹56.55 crore is also the size of the overall IPO.

How to apply for the Unihealth Consultancy Ltd IPO

The stock of Unihealth Consultancy IPO has a face value of ₹10 and bidders can only bid in minimum lot size of 1,000 share each, entailing a minimum investment of ₹132,000 in the IPO at the upper end of the price band of ₹132 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 2,000 shares entailing an investment of ₹264,000. The table below captures the lot sizes permissible.

As per the terms of the offer, 50% of the net offer is reserved for the qualified institutional buyers (QIBs), 15% of the offer is reserved for the HNI / NII investors and the balance 35% is reserved for the 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.

Like in every SME IPO, the IPO of Unihealth Consultancy Ltd 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 Unihealth Consultancy Ltd. The company has set aside 216,000 shares for the market maker.

The issue opens for subscription on 08th September 2023 and closes for subscription on 12th September 2023 (both days inclusive). The basis of allotment will be finalized on 15th September 2023 and the refunds will be initiated on 18th September 2023. In addition, the demat credits are expected to happen on 20th September 2023 and the stock is scheduled to also list on 21st September 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 Unihealth Consultancy 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 Unihealth Consultancy Ltd, we already have GMP data for the last 2 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 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 Unihealth Consultancy IPO for which the data is available.

In the above case, the GMP trend shows that the grey market premium has opened at around ₹15, but has since stayed at ₹16. Of course, we have to await for the actual subscription numbers to flow in when the issue opens for subscription on 08th September 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, Unihealth Consultancy Ltd has shown good traction in the grey market.

If you consider the upper end of band price of the IPO of Unihealth Consultancy Ltd at ₹132, then the likely listing price is being signalled at around ₹147 per share as per the GMP indicator on 05th September 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 ₹15 on the upper end of the book built IPO price of ₹132 indicates a listing premium of a healthy 11.36% for Unihealth Consultancy Ltd over the listing price. That pre-supposes a listing price of approximately ₹147 per share, when Unihealth Consultancy Ltd lists on 21st September 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.

Brief on Unihealth Consultancy Ltd

Unihealth Consultancy Ltd was incorporated in 2010, to provide quality and affordable healthcare services. The company is based out of Mumbai, India but has operational presence in multiple countries across Africa, where it is largely concentrated. The company has several verticals including the Medical Centres vertical, Hospitals vertical, Consultancy Services vertical, Pharma distribution vertical, Medical Consumables vertical, and Medical Value Travel. Under the umbrella of Unihealth Consultancy Ltd, the company operates a combined capacity of 200 operational hospital beds across two multi-specialty facilities. The first facility is the UMC Victoria Hospital in Kampala, Uganda with a bed strength of 120 beds, while the UMC Zahir Hospital in Kano, Nigeria has a bed strength of 80 beds. Apart from these 2 hospitals, Unihealth Consultancy Ltd also operates the Unihealth Medical Centre, with dedicated dialysis facility, in Mwanza, Tanzania.

With a strong global footprint and exposure to global best practices, Unihealth Consultancy Ltd also provides project management consultancy services to set up a 300 bed Health City in Undri, Pune. This is on behalf of PHRC Lifespaces Organization. It also has few other healthcare consultancy projects in other African nations like Kenya and Angola in the pipeline. Unihealth has a dedicated subsidiary, Unihealth Pharmaceuticals Private Limited, which undertakes the business of procuring and exporting pharmaceutical and medical consumables. This company exports all necessary goods and consumables to its hospital and medical care centre network located in Africa. Its major client roster is spread across the African nations of Uganda, Nigeria, Tanzania, Kenya, Zimbabwe, Angola, Ethiopia, Mozambique, and the Democratic Republic of Congo; apart from India.

The company is promoted by Dr Anurag Shah and Dr Akshay Parmar. The promoter holding stands at 95.32%, which will get diluted to 68.80% post the IPO. The fresh issue funds will be used by the company for investing in its JV in Kampala, Uganda as well as the joint venture in Nigeria and Tanzania. Unistone Capital Private Ltd will be the lead manager to the issue, while Bigshare Services Private Ltd will be the registrar to the issue. The market maker for the issue is Rikhav Securities Ltd.