GPT Healthcare IPO is set to open for public subscription on Thursday, February 22, marking a significant moment for investors interested in the healthcare sector. GPT Healthcare Ltd, recognized for its chain of mid-sized, full-service hospitals branded as ‘ILS Hospitals,’ is venturing into the public market. This move comes as the company aims to expand its footprint in providing integrated healthcare services, emphasizing secondary and tertiary care.
The company operates in a broad spectrum of medical fields, offering services across more than 35 specialties and super specialties. These include internal medicine, diabetology, nephrology with renal transplants, general and laparoscopic surgery, obstetrics and gynaecology, critical care, gastroenterology, orthopaedics and joint replacements, interventional cardiology, neurology, neurosurgery, paediatrics, and neonatology. This wide range of services underlines the company’s comprehensive approach to healthcare, catering to a vast array of patient needs.
As detailed in its Red Herring Prospectus (RHP), GPT Healthcare manages a total of four multispecialty hospitals, boasting a cumulative bed capacity of 561. These facilities are strategically located in West Bengal, with establishments in Howrah, Dum Dum, Salt Lake, and Agartala, ensuring broad geographical coverage and accessibility.
The prospectus also provides insight into the company’s market position relative to its peers. Listed competitors include Global Health Limited, Krishna Institute of Medical Sciences Limited, Jupiter Life Line Hospitals Limited, Yatharth Hospital & Trauma Care Services Limited, Kovai Medical Center & Hospital Limited, and Shalby Limited, highlighting a diverse and competitive landscape with varying price-to-earnings (P/E) ratios.
Ownership of GPT Healthcare is predominantly held by its promoters: GPT Sons Private Limited, Dwarika Prasad Tantia, Dr. Om Tantia, and Shree Gopal Tantia, collectively owning 67.34% of the company’s paid-up equity share capital, totaling 53,805,600 equity shares as of February 15, 2024.
Financially, GPT Healthcare Limited witnessed a slight downturn in its profit after tax (PAT) by 6.37% from March 31, 2022, to March 31, 2023. However, this was coupled with a revenue increase of 7.11%, indicating a mixed financial performance with potential for future growth.
Investors eyeing the GPT Healthcare IPO should note the following key details:
- Subscription Dates: The IPO opens on February 22 and closes on February 26.
- Price Band: The price range is set between ₹177 to ₹186 per share, with a face value of ₹10 each.
- Lot Size: Investors can subscribe in lots of 80 equity shares and multiples thereof.
- Anchor Investors: The allocation to anchor investors will be finalized a day before the subscription opens, on February 21.
- Offer Details: The IPO, valued at ₹525.14 crore, includes a fresh issue of ₹40 crore and an offer-for-sale (OFS) of 26,082,786 equity shares by BanyanTree Growth Capital II, LLC, totaling ₹485.14 crore.
- Utilization of Proceeds: The net proceeds are earmarked for general corporate purposes and to repay or prepay a portion of existing loans.
- Listing Date and Allotment: The allotment of shares is expected to be finalized on February 27, with refunds initiated on February 28. The shares are slated for credit to allottee demat accounts on the same day, with a listing on the BSE and NSE anticipated on February 29.
- Lead Manager and Registrar: JM Financial Limited is the book running lead manager, with Link Intime India Private Ltd serving as the issue’s registrar.
- IPO Reservation: The public issue reserves up to 50% for qualified institutional buyers (QIB), at least 15% for non-institutional investors (NII), and a minimum of 35% for retail investors.
- Grey Market Premium (GMP): As of today, the GMP stands at ₹0, indicating that the shares are trading at their issue price of ₹186 in the grey market, with no premium or discount.
For investors considering participation in the GPT Healthcare IPO, these details offer a comprehensive overview of the investment opportunity. The company’s broad healthcare services, strategic hospital locations, and its financial performance are critical factors to evaluate. Additionally, understanding the competitive landscape and assessing the company’s valuation in comparison to its peers can provide further insights into the potential for long-term growth and profitability.