Paras Healthcare IPO Day 2: GMP Hits 4% Amidst Rising Subscription Rates—Key Details Inside!

Paras Healthcare’s IPO saw a lukewarm start as it entered its second day of bidding on October 22, with an overall subscription of just 15%. As of now, the retail individual investor (RII) portion has shown more promise, being subscribed at 69% against the allocated shares. The IPO opened on October 21, offering a price band of Rs 660–Rs 693 per share, and will close for subscription on October 23. The public issue is structured as a fresh issue of 72.15 lakh shares and an offer for sale (OFS) of 1.37 crore shares, aggregating to Rs 1,450 crore.

In the grey market, Paras Healthcare’s IPO is presently commanding a premium of around 4%, which indicates modest expectations for listing gains. Based on current sentiments, the estimated listing price is around Rs 718 per share. However, the weak subscription numbers, particularly in the Qualified Institutional Buyer (QIB) segment, where there were no bids even after the second day, could dampen the overall market sentiment surrounding the issue.

For Indian investors, particularly retail investors, the IPO presents both opportunities and risks. The company is focusing on reducing its debt burden and has plans for expansion, which could enhance financial health over time. However, the muted market response and low interest from institutional investors might raise a red flag for those looking for robust listings. Investors should weigh these factors carefully as they contemplate participation in this IPO.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)