Galaxy Medicare shares list at par to IPO price, hit 5% lower circuit post market debut

Galaxy Medicare IPO listing: Shares of Galaxy Medicare were off to a tepid start, with the stock listing at par with the initial public offering (IPO) price of ₹54 apiece on the NSE SME platform. However, soon after listing, Galaxy Medicare shares faced intense selling pressure and hit the 5% lower price band of ₹51.30.

As of 10.20 am, there were only sell orders of 8,88,000 shares on NSE.

The listing of Galaxy Medicare was in line with expectations as the grey market premium was nil, signalling an at par debut.

The ₹22 crore SME IPO had seen tepid demand for its public offering, with the retail portion booked 2.10 times and the non-institutional investor (NII) portion subscribed 1.48 times. Lastly, the qualified institutional buyer (QIB) quota was booked 1 time.

Overall, Galaxy Medicare IPO received 1.83 times bids.

Galaxy Medicare IPO was open for bidding from September 10 to September 12. The issue was a mix of offer for sale of ₹4.45 crore and a fresh issue of ₹17.86 crore.

The price band for Galaxy Medicare IPO was set at ₹51 to ₹54 apiece, wherein investors could apply in lots of 2,000 shares. Retail investors needed to apply for a minimum of two lots, needing an investment of ₹2,16,000 at the upper end of the price band.

The company, which operates in the healthcare sector, plans to use the fresh proceeds from the share sale for funding capital expenditure requirements, including the purchase of machinery for its existing manufacturing facility in Bhubaneswar, Odisha, meeting working capital needs, and general corporate purposes. Lastly, some portion of the funds will be used to meet offer-related expenses.

Incorporated in July 1992, Galaxy Medicare is engaged in the manufacturing and export of medical devices, including POP bandages and surgical dressings, within India and overseas.

The company uses premium-grade raw materials sourced from reputable and verified vendors to ensure product quality and consistency.

Galaxy Medicare specialises in a wide range of healthcare products, such as surgical dressings, plaster of Paris (POP) bandages, adhesive tapes, compression bandages, and advanced wound care solutions.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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