Three Hospital Chains Set to Raise Funds Worth up to Rs. 6300 Crores via Initial Share Sale

Healthcare facilities are attracting a lot of interest from investors owing to the repercussions of the Covid-19 pandemic. Consequently, it appears that leading hospital chains in India are looking to make the most of this opportunity.

Cloudnine Hospitals, Park Group and Medanta are making arrangements to raise a maximum of Rs. 6,300 crores by going public.

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Here are some key details in relation to each of the companies that investors should note ahead of the forthcoming initial public offerings:

1. Cloudnine Hospitals

Cloudnine Hospitals are looking to raise anywhere between Rs. 2,500 – 3,500 crores. This initial share sale will include a fresh issue of equity shares along with an offer for sale (OFS) by existing investors.

• Some noteworthy investors of this company include True North, Sequoia India and NewQuest.
• True North is the largest shareholder of Cloudnine Hospitals, with a stake of roughly 35%. That said, promoters hold 20-25% of the total number of shares.
• Cloudnine’s projected value post its upcoming initial public offering is Rs.7,300 crores, i.e. approximately $1 billion.
• Established in 2006, the Bangalore-based company has 18 facilities across 8 cities in India.

Cloudnine Hospitals plans to open 24 more facilities within March 2022 by raising funds via IPO.

2. Medanta

Medanta is looking to raise funds worth Rs. 2,000 crores by floating its IPO. Similar to Cloudnine, it is in the advanced stages to launch its initial share sale. Here are some points that investors might want to take into account:

• Among all the single-location hospitals in India’s private sector, The Medicity by Medanta is the largest. Located in Gurgaon, the healthcare facility has 1,300 beds, which include close to 250 ICU beds.
• The promoter of Medanta, Naresh Trehan, along with his family members and co-founder Sunil Sachdeva hold 55% shares of this company.

The IPO will include fresh issuance as well as an offer for sale. Carlyle, an existing investor of Medanta, has been looking to offload its shares for the past 3-4 years.

3. Park Group of Hospitals

Park Group is another leading hospital chain in India that is planning to launch its initial public offering. The company plans to raise Rs. 800 crores via its initial share sell. Investors should keep the following highlights in mind regarding the company:

• Park Group has a chain of 12 hospitals in the northern part of India.
• Some speciality areas of these healthcare facilities include cancer care, gynaecology and cancer care.
• On 13 July 2021, the company completed the acquisition of Nidaan Hospital.

Wrapping Up

With the demand for healthcare and insurance rising rapidly, it appears that private hospitals have been quite enticing for investors. Stocks prices of Apollo Hospitals and Max Healthcare have surged 45-50% over the last three months. Accordingly, investors might consider subscribing to the upcoming three IPOs of India’s leading hospital chains.

Nevertheless, they must make sure to consider key aspects, such as strengths, weaknesses, and threats regarding the companies, before placing the IPO order via Angel One. Also, keep visiting this page to stay updated regarding the forthcoming public issues.

 

Frequently Asked Questions

1. Who are the merchant bankers for these three upcoming IPOs?

The companies which have been appointed as merchant bankers for these IPOs include JM Financial, ICICI Securities, Kotak Mahindra Capital, Credit Suisse and SBI Capital.

2. Which are some of the listed peers of Cloudnine Hospitals?

Some of the listed peers of Cloudnine Hospitals include Fortis Health, Metropolis and KMC Speciality.

3. Which is the largest company in India’s hospitals and medical services sector in terms of market capitalisation?

In terms of market capitalisation, Apollo Hospital is the largest company in the hospitals and medical services industry.