GPT Healthcare Ltd IPO: The first public offering (IPO) of GPT Healthcare Ltd. will be for equity shares valued at Rs 10 apiece. With an IPO price range of Rs 177–Rs 186 per equity share, the total issue size at the upper price band is Rs 525.14 crore.
The initial public offering (IPO) is slated to start on February 22, 2024, and end on February 26, 2024. Eighty shares make up the market lot for the initial public offering (IPO), and multiples of this lot may be applied for. Retail investors can apply individually for up to 13 lots, which is equal to 1,040 shares or a total investment of Rs 1,93,440 if the upper price band is met.
Overview Of GPT Healthcare Ltd
Operating a network of mid-sized full-service hospitals under the name ILS Hospitals, the company is a prominent corporate healthcare entity in Eastern India. It provides integrated healthcare services with a focus on secondary and tertiary care. As of September 30, 2023, the company ran four multispecialty hospitals with a combined bed capacity of 561, situated in Agartala, Tripura, and the West Bengal towns of Dum Dum, Salt Lake, and Howrah.
It provides a wide range of medical services covering more than 35 specializations and super specialties, such as nephrology, gynecology, internal medicine and diabetology, gastroenterology, critical care, orthopaedics and joint replacements, neurology, neurosurgery, pediatrics, and neonatology. Every hospital also offers pharmacies and integrated diagnostic services to meet the needs of their patients.
IPO Details
| IPO Opening Date | February 22, 2024 |
| IPO Closing Date | February 26, 2024 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs 10 per equity share |
| IPO Price | Rs 177 to Rs 186 per equity share |
| Min Order Quantity | 80 shares |
| Listing At | BSE, NSE |
| Total Issue | 28,233,323 shares of FV Rs 10* |
| (Aggregating up to Rs 525.14 Cr)* | |
| Fresh Issue | 2,150,537 shares of FV Rs 10* |
| (Aggregating up to Rs 40 Cr)* | |
| Offer for Sale | 26,082,786 shares of FV Rs 10* |
| (Aggregating up to Rs 485.14 Cr)* | |
| QIB Shares Offered | 50% of the Offer |
| Retail Shares Offered | 35% of the Offer |
| NII (HNI) Shares Offered | 15% of the Offer |
Financials
In recent years, the company has successfully increased its top-line growth. Furthermore, net profits have increased significantly, though they did slightly decline in FY23 after growing by almost 100% year over year in FY22. Similar encouraging numbers for the first half of FY24 point to sustained robust growth for the entire fiscal year. For the fiscal year 2023, the company reported a return on equity (RoE) of 24% and a return on capital employed (RoCE) of 26%.
Ojectives Of GPT Healthcare Ltd
The new issue and the offer for sale are both included in the offer. It’s crucial to understand that the company will not receive any money from the sale offer. The company intends to use the net proceeds from the new issue for general corporate purposes and the repayment or prepayment, in full or in part, of some outstanding loans that the company has obtained.
The company’s promoters are GPT Sons Private Limited, Dr. Om Tantia, Shree Gopal Tantia, and Dwarika Prasad Tantia. Presently, the promoters own 67.34 percent of the company’s pre-issue shares.
Valuation And Outlook
As of September 30, 2023, the issue’s Net Asset Value (NAV) was Rs 21.45. This resulted in a P/BV ratio of 8.67 times. When the annualized FY24 earnings are divided by the fully diluted paid-up equity capital to compute the PE ratio for the company, the resultant ratio is 32. When it comes to valuation and returns, GPT Healthcare Ltd. performs better than its listed competitors.
India also benefits from medical tourism, as it attracts patients seeking top-notch medical care from neighboring Bangladesh, Nepal, and Bhutan. The medical tourism industry in Eastern India is strategically advantageous because average treatment costs are lower there than in the country’s northern and western regions. Eastern India is also easier to reach from these nearby nations, which increases its allure as a medical value travel destination.
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The company’s strategic location in Eastern India allows it to profit from the expected growth of the healthcare sector in both the region and its neighboring states. The company’s early-mover advantage, strategically located hospitals, and strong brand presence all contribute to this advantageous position. Therefore, we suggest that investors consider making a long-term subscription to the offering.
