GPT Healthcare, which owns the ILS Hospitals chain, has got permission from the capital markets regulator SEBI to fund up to Rs 500 crore via an IPO. According to the DRHP, the IPO would include an offer for sale (OFS) of up to 2.98 crore equity shares by a promoter company and an investor and a new issue of equity shares worth Rs 17.5 crore.
The OFS involves GPT Sons selling up to 38.05 lakh equity shares and BanyanTree Growth Capital II LLC selling up to 2.61 crore equity shares. The IPO will be the private equity firm’s last departure from the business. According to an update filed with the Securities and Exchange Board of India (SEBI) on Monday, GPT Healthcare, which submitted the DRHP in August, received its observations on December 29, 2021.
The issue of an observation letter indicates the SEBI’s approval of the IPO. The IPO is anticipated to raise between Rs 450 crore and Rs 500 crore, according to market sources. The funds raised from the new share offering will be used to buy medical equipment and for other company reasons. GPT Sons now has a 67.34 percent position in GPT Healthcare, while BanyanTree Growth Capital II, LLC owns a 32.64 percent stake.
GPT Healthcare, located in Kolkata, runs an ILS Hospitals-branded network of mid-sized hospitals in eastern India that offers comprehensive healthcare services with an emphasis on secondary and tertiary care. It had four multi-specialty hospitals with a total capacity of 556 beds as of September 30, 2021.
The business recently inked a memorandum of understanding and a long-term leasing arrangement for a 140-bed hospital in Ranchi, with an investment of Rs 50 crore. In 2025, the Ranchi hospital is anticipated to open its doors. The issue’s primary managers are DAM Capital and SBI Capital Markets.
Primary Strengths of GPT Healthcare
- They are strategically located in places that are underserved in terms of healthcare services, as well as in notable areas with dense populations.
- GPT Healthcare offers a diverse range of healthcare delivery verticals and serves people from all walks of life.
- The hospitals are appropriately scaled for the area and sub-regional requirements.
- They work with a big number of competent physicians and nurses and are able to keep them on long-term contracts.
Primary Weaknesses of GPT Healthcare
- The corporation is primarily reliant on the income of West Bengal hospitals, and if these hospitals’ profits are impeded, it would have a negative impact on the overall business.
- Because many of the grounds on which the hospitals are built are leased by the firm for a long time, any change in ownership will have a significant influence on the company’s operations.
- Healthcare specialists hired on a consultancy basis are critical to the smooth operation of the company.
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