The initial public offer (IPO) of Goodwill Hospital and Research Centre saw poor response on the second day of issue today, 2 January 2012. So far the IPO garnered bids for 9,415 shares as against 35.42 lakh shares on offer. The company is offering shares in a price band of Rs 175-185 per share. The IPO closes on 9 January 2012.
The issue also comes along with one detachable warrant, which is convertible into one equity share upon exercise. Interestingly, the warrant exercise price shall be at 20% discount to the then prevailing market price of equity share at the time of exercise. The prevailing market price shall be the average of the daily closing prices of the equity shares during the one-month period ending immediately on completion of the period of 13 months from the date of allotment.
Goodwill Hospital intends to use the IPO proceeds for setting up a diagnostic centre in Faridabad, establishment of six polyclinics and repayment of loans. Ratings firm CARE has assigned an IPO Grade 3 to the company's IPO, indicating average fundamentals
Goodwill Hospital and Research Centre is the wholly-owned subsidiary of Ojjus Medicare Private. The company has a multi specialty hospital at Noida under the name Ojjus Medicare with focus on neurology and neuro surgery, cardiology and cardiac surgery and orthopedics with emphasis on joint replacements and sports injuries.