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Shalby Ltd stock closes lower after making tepid market debut

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The Shalby Ltd stock closed 3.53 percent or 8.75 points lower at Rs 239.25 on Friday after the multispecialty hospital chain share listed at over 4 percent discount over the issue price of Rs 248. The stock listed at Rs 237, down 4.43 per cent over the issue price on BSE. It later dipped 4.75 per cent to Rs 236.20. On NSE, the stock debuted at Rs 239.70, falling 3.34 per cent as compared to the issue price.On NSE, the stock debuted at Rs 239.70, falling 3.34 per cent as compared to the issue price. In volume terms, 12.07 lakh shares of the company were traded on BSE and over 68 lakh shares changed hands on NSE during the morning trade.The multispecialty hospital chain completed its two day initial public offer (IPO) on December 7.  The IPO was subscribed 2.8 times at a price band of Rs 245-248 per share. Shalby has 11 multi-specialty hospitals with a total 2012 beds and an operational bed count of 841 beds. Edelweiss Financial Services, IDFC Bank and IIFL Holdings managed the Shalby IPO and the funds raised would be used mainly for debt repaymentThe company will use Rs 300 crore from the IPO kitty to retire the debt, which would reduce Rs 27 crore of finance cost in FY18 and make the company almost debt free. The rest of the proceeds will be used for purchasing medical equipment worth Rs 63.58 crore for existing and upcoming hospitals and for further expansion.

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