GPT Healthcare to raise Rs 502 crore through IPO at Rs 177-186 per share

GPT Healthcare to raise Rs 502 crore through IPO at Rs 177-186 per share

GPT Healthcare Ltd, a company that operates and manages mid-sized multi-specialty hospitals under the ILS Hospitals brand, has announced the price band and the dates for its initial public offering (IPO). The company aims to raise Rs 502 crore through the IPO, which will open for subscription on February 22 and close on February 26. The price band has been fixed at Rs 177-186 per share, and the bidding for anchor investors will take place on February 21.

The IPO consists of a fresh issue of equity shares aggregating to Rs 40 crore and an offer for sale (OFS) of up to 2.6 crore equity shares by private equity firm BanyanTree Growth Capital II. BanyanTree, which holds 2.6 crore shares or 32.64 per cent stake in GPT Healthcare, is divesting its entire shareholding in the company.

The IPO will constitute 32.64 per cent of the post-issue paid-up equity share capital of the company. The face value of each equity share is Rs 10. Investors can bid for a minimum of 80 equity shares and in multiples of 80 equity shares thereafter.

The company has reserved 50 per cent of the net offer for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs), and 35 per cent for retail individual investors (RIIs).

The objectives of the IPO

The company plans to use the proceeds from the fresh issue for payment of debt and general corporate purposes. As of September 30, 2023, the company had a total debt of Rs 173.65 crore, of which Rs 30 crore will be repaid from the IPO proceeds.

The company also intends to achieve the benefits of listing the equity shares on the stock exchanges, such as enhancing its visibility, brand image, and providing liquidity to its existing shareholders.

The profile of the company

GPT Healthcare, founded by Dwarika Prasad Tantia, Dr Om Tantia and Shree Gopal Tantia, started with an eight-bed hospital in Kolkata in 2000. Today, it operates four full-service multi-specialty hospitals, with a total capacity of 561 beds. The company offers a range of services, such as cardiology, neurology, nephrology, gastroenterology, oncology, orthopaedics, and critical care.

The company competes with listed industry peers, such as Global Health Ltd, Krishna Institute of Medical Sciences Ltd, Jupiter Life Line Hospitals Ltd, Yatharth Hospital & Trauma Care Services Ltd and Shalby Ltd.

The company’s total income increased 7.3 per cent to Rs 361.03 crore in FY23 from Rs 337.41 crore in FY22. Its profit after tax increased 17.9 per cent to Rs 36.67 crore in FY23 from Rs 31.11 crore in FY22. Its earnings before interest, tax, depreciation and amortisation (EBITDA) margin improved to 24.6 per cent in FY23 from 23.8 per cent in FY22.

The lead manager and the listing details

JM Financial is the sole book-running lead manager to the issue. The equity shares are proposed to be listed on the BSE and the NSE.

The company has received in-principle approvals from both the stock exchanges for the listing of the equity shares.

The company has also received the observations from the Securities and Exchange Board of India (SEBI) for the IPO on February 7, 2024.