 "Healthcare Global Enterprises files for IPO")
Healthcare Global Enterprises, which specialises in cancer treatment, has filed an offer document with the stock market regulator for a maiden public issue.
The Initial Public Offer has share sale by existing equity holders, as well as fund-raising by the company. The issue is for sale of 31.09 million shares or 36.83 per cent of all post-issue equity. There is an Offer for Sale of 11.6 mn shares and a fresh issue of another 19.49 mn. The former refers to sale by existing shareholders, which means the capital raised goes to them. The latter refers to the company creating fresh shares for sale. The capital thus raised will got on medical equipment, investment in technology, repayment of debt and other general corporate purposes, says the offer document.
The company provides specialist care on cancer and fertility treatments. It claims to be the largest provider of cancer care in the country. Revenue for the financial year ending March 2015 (FY15) was Rs 519 crore. The corresponding figure for FY14 and FY13 were Rs 451 crore and Rs 338 crore, respectively.
This is the 24th company to file for an IPO since January. Only 20 companies did so in all of 2014. The issue size would depend on the final price at which the company decides to sell the shares. The fund requirement is Rs 236 crore, excluding general corporate purposes, shows the offer document.
The company also spoke about plans to expand ther business to other regions. “We believe our current model of speciality health care in India can be replicated in other underserved markets. We intend to establish a network of speciality cancer centres in Africa, similar to our network in India. We believe our planned network will cater to the increasing unmet demand for cancer care in Africa, due to which a large number travel outside the region to avail quality cancer care, including to our centres in India,” said the offer document.
Adding: “We have entered into a definitive agreement with CDC, pursuant to which it will invest in our subsidiary, HCG Africa, formed to establish a network of comprehensive cancer centres in Africa.”
The Initial Public Offer has share sale by existing equity holders, as well as fund-raising by the company. The issue is for sale of 31.09 million shares or 36.83 per cent of all post-issue equity. There is an Offer for Sale of 11.6 mn shares and a fresh issue of another 19.49 mn. The former refers to sale by existing shareholders, which means the capital raised goes to them. The latter refers to the company creating fresh shares for sale. The capital thus raised will got on medical equipment, investment in technology, repayment of debt and other general corporate purposes, says the offer document.
The company provides specialist care on cancer and fertility treatments. It claims to be the largest provider of cancer care in the country. Revenue for the financial year ending March 2015 (FY15) was Rs 519 crore. The corresponding figure for FY14 and FY13 were Rs 451 crore and Rs 338 crore, respectively.
More From This Section
Kotak Mahindra Capital Company, Edelweiss Financial Services, Goldman Sachs (India) Securities, IDFC Securities, IIFL Holdings and YES Bank are the merchant bankers to the issue. Karvy is the registrar. The selling shareholders include promoter B S Ajai Kumar and investors through IL&FS Trust Company Milestone Trusteeship.
This is the 24th company to file for an IPO since January. Only 20 companies did so in all of 2014. The issue size would depend on the final price at which the company decides to sell the shares. The fund requirement is Rs 236 crore, excluding general corporate purposes, shows the offer document.
The company also spoke about plans to expand ther business to other regions. “We believe our current model of speciality health care in India can be replicated in other underserved markets. We intend to establish a network of speciality cancer centres in Africa, similar to our network in India. We believe our planned network will cater to the increasing unmet demand for cancer care in Africa, due to which a large number travel outside the region to avail quality cancer care, including to our centres in India,” said the offer document.
Adding: “We have entered into a definitive agreement with CDC, pursuant to which it will invest in our subsidiary, HCG Africa, formed to establish a network of comprehensive cancer centres in Africa.”