GPT Healthcare, which operates and manages hospitals under the ILS Hospitals brand, has 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).
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.
According to market sources, the initial public offering is expected to fetch between Rs 450 crore and Rs 500 crore.
At present, GPT Sons Private Limited holds 67.34 percent stake in GPT Healthcare and BanyanTree Growth Capital II, LLC owns 32.64 percent stake in the company.
Proceeds from the fresh issue will be used to purchase medical equipment aggregating to Rs 13.2 crore and general corporate purposes.
Kolkata-based Healthcare operates a chain of mid-sized hospitals in eastern India under the 'ILS Hospitals' brand and provide 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.
It 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. Its Ranchi hospital is expected to commence operations in 2025. Other locations it is considering to expand are Varanasi, Patna, Raipur, Guwahati, Kanpur and Cuttack.
GPT Healthcare's multispeciality hospitals are specialized in advanced surgical procedures, gynaecology and maternity services, paediatrics, orthopaedics, neuro and cardiac sciences, psychiatry and others.
Its total income increased 15.17% 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 percent compared with 18.53 percent in 2020.
The healthcare delivery market in India is expected to grow at a CAGR of 15% - 17% between fiscal Years 2021 and 2025 and reach Rs 7.67 trillion in fiscal Year 2025.
Dam Capital Advisors Limited, and SBI Capital Market Limited are the book running lead managers to the IPO.