A Closer Look at GPT Healthcare IPO
The initial share sale of GPT Healthcare will consist of freshly issued shares of Rs. 17.5 crores. Further, as per its red herring prospectus, this IPO will also include an OFS of around 29,887,486 equity shares by an investor and a promoter entry.
Reportedly, as a part of the OFS:
- GPT Sons Pvt. Ltd. will offload shares worth Rs. Rs. 38.05 lakhs, and
- BanyanTree Growth Capital II, which is a private equity firm, will sell shares worth Rs. 2.61 crores.
GPT Sons Pvt. Ltd. has around 67.34% stake in the firm, while BanyanTree Growth Capital II has a 32.64% stake in it.
This private equity firm will seek a complete exit from the firm through this public offer.
According to an update with SEBI, GPT Healthcare obtained its observations on 29 December 2021. In SEBI’s jargon, the observation letter means approval for an IPO.
As per the company, it will utilize the funds from this issue for the following purposes:
- Medical equipment purchase worth Rs. 13.2 crores
- General corporate purposes
Further, sources point that it will utilize the funds to purchase medical equipment over a span of two years.
Know About GPT Healthcare
GPT Healthcare operates and controls various mid-sized hospitals in the eastern part of India. The firm works under the name of ‘ILS Hospitals’ and focuses on tertiary and secondary care while providing integrated healthcare services.
As of 30 September 2021, the firm is in control of 4 multi-specialty hospitals, which feature 556 beds.
Recently, the firm also signed a long-term lease agreement and an MoU regarding a hospital in Ranchi, Jharkhand. It is set to invest around Rs. 50 crores for this set-up. GPT Healthcare’s hospital in Ranchi is supposed to operate from 2025.
In addition, the firm also looks forward to expanding its operations in various other Indian cities, including Patna, Varanasi, Kanpur, Cuttack, and Guwahati.
Because of the onset of the pandemic, GPT Healthcare reported massive income in the previous fiscal. This increase is primarily attributed to increased hospital services, non-operating income as well as in-hospital pharmacy sales.
GPT Healthcare has poised excellent financials over a few years. Further, the company also seems ambitious with its future expansion plans, which may help it garner the needed attention from investors.
Source – Moneycontrol
Frequently Asked Questions
- Who are the book-running managers to this IPO?
The book-running managers to GPT Healthcare IPO are SBI Capital Market Ltd and Dam Capital Advisors Ltd.
- By what percentage did GPT Healthcare’s income increase in FY21?
During FY20, GPT Healthcare reported a total income of Rs. 249 crores, which was a nearly 15% increase.
- When did GPT Healthcare set up its first hospital?
It commissioned the first of the ILS Hospitals in Kolkata in 2000.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.