Credent Connect N Care Makes Strong Debut, Shares Jump 90% To Hit Upper Circuit At Rs 377 On NSE SME
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Strong investor demand across categories, led by non-institutional investors at over 216 times subscription, set the stage for Credent Connect N Care's blockbuster market debut.
Shares of Credent Connect N Care nearly doubled from their IPO issue price shortly after making their debut on the NSE Emerge platform on Thursday, August 20, as the healthcare logistics company's stock attracted strong buying interest.
The shares listed at Rs 359.10 apiece, marking a 90% premium over the IPO issue price of Rs 189. The stock then hit the 5% upper circuit at Rs 377.05, taking its gains to nearly 100% over the issue price.
Credent Connect N Care IPO: Subscription, Listing And Fund Use
The Rs 93.90 crore IPO comprised an entirely fresh issue of 50 lakh shares priced at Rs 189 apiece. The issue was open for subscription from August 13 to August 17 and was subscribed 153.13 times overall.
Non-Institutional Investors led the demand with 216.97 times subscription, followed by retail investors at 138.86 times and Qualified Institutional Buyers at 130.40 times.
Ahead of the IPO, Credent Connect N Care raised Rs 26.54 crore from anchor investors on August 12. Hem Securities was the book-running lead manager, while Kfin Technologies acted as the registrar to the issue.
The company plans to use the fresh issue proceeds for working capital and business expansion. Around Rs 26.80 crore has been earmarked for the working capital requirements of its wholly owned subsidiary, Credent Healthcare Private Limited, while Rs 37 crore will be used for the company's own working capital needs.
Another Rs 3 crore has been allocated towards machinery and other capital expenditure, while Rs 6 crore will be used to repay borrowings, either fully or partially. The remaining funds will be used for general corporate purposes.
Credent Connect N Care provides technology-enabled healthcare operations, workforce and supply-chain solutions to institutions across India. Its B2B customer base includes diagnostic laboratories, IVD companies, pharmaceutical companies, hospitals and clinics.
Its services include home sample collection, laboratory and phlebotomy manpower, diagnostic and paramedical support, healthcare logistics and supply-chain management, corporate wellness programmes and technology-enabled courier aggregation through its C3 Post platform.
The company also handles the transportation of diagnostic samples, medical supplies, reagents and other healthcare consignments through temperature-controlled and time-sensitive logistics, including cold-chain transportation.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
