GPT Healthcare set to raise Rs. 500 cr via IPO
The initial public offering (IPO) consists of a fresh issue of equity shares aggregating to Rs17.5 crore, and an offer for sale of up to 29,887,486 equity shares
Kolkata-headquartered GPT Healthcare, which operates and manages hospitals under the ILS Hospitals brand, is betting big on the healthcare delivery market in India, which is expected to grow at a CAGR of 15 per cent – 17 per cent between 2021 and 2025 and reach Rs 7.67 trillion in the FY 2025. With this in view, the healthare chain has lined up plans to raise anything between Rs 450 crore and Rs 500 crore through its maiden IPO.
The company has already received approval from markets regulator Sebi to launch its initial public offering (IPO). The initial public offering (IPO) consists of a fresh issue of equity shares aggregating to Rs 17.5 crore, and an offer for sale of up to 29,887,486 equity shares, according to the draft red herring prospectus (DRHP). Dam Capital Advisors Limited, and SBI Capital Market Limited are the book running lead managers to the IPO.
At present, the Kolkata-based Healthcare operates a chain of mid-sized hospitals in eastern India under the 'ILS Hospitals' brand and provides integrated healthcare services, with a focus on secondary and tertiary care. As of September 30, 2021, it operates four multi-specialty hospitals, with a total capacity of 556 beds. GPT Healthcare's multi-speciality hospitals are specialized in advanced surgical procedures, gynaecology and maternity services, paediatrics, orthopaedics, neuro and cardiac sciences, psychiatry and others.
In the new scheme of things, as a part of the OFS, BanyanTree Growth Capital II, LLC, a Mauritius-based structured private equity, will sell up to 26,082,786 equity shares and GPT Sons Private Limited, promoter will offload up to 3,804,700 equity shares. At present, GPT Sons Private Limited holds 67.34 per cent stakes in GPT Healthcare and BanyanTree Growth Capital II, LLC owns 32.64 per cent stakes in the company. Officials said that the proceeds from the fresh issue will be used to purchase medical equipment aggregating to Rs 13.2 crore and general corporate purposes.
Significantly, the healthcare group has recently signed an MoU and a long-term lease agreement for a hospital with 140 beds in Ranchi with an investment of Rs 50 crore. The proposed hospital at Ranchi is expected to commence operations in 2025. The hospital chain's next ports of call would be Varanasi, Patna, Raipur, Guwahati, Kanpur and Cuttack.
Meanwhile, the company's total income increased 15.17 per cent from Rs 216.08 crore in fiscal year 2020 to Rs 248.86 crore in fiscal year 2021, primarily due to the increases in income from hospital services, income from pharmacy sales, as well as non-operating income and the net profit stood at Rs 21.09 crore for fiscal 2021 versus Rs 10.96 crore a year ago. EBITDA margin was at 22.14 per cent compared with 18.53 per cent in 2020.