Indraprastha Medical zooms 20% after HDFC Bank offloads 3% stake

HDFC Bank said that out of 5.03 million equity shares held by it as on February 28, the Bank has sold 2.78 million shares

Shares of Indraprastha Medical Corporation (IMCL) hit a record high of Rs 249 as they zoomed 20 per cent on the National Stock Exhchange (NSE) in Friday's intraday trade after private lender HDFC Bank offloaded nearly 3 per cent stake of the hospital company via open market since February 29. The stock surpassed its previous high of Rs 230 touched on November 23, 2023.

In an exchange filing, HDFC Bank said that out of 5.03 million equity shares of Rs 10 each held by HDFC Bank as on February 28, 2024, in IMCL, the Bank has sold 2.78 million shares (representing 3.03 per cent of the share capital of Indraprastha).

HDFC Bank said the shares were sold through the secondary market route on National Stock Exchange of India (NSE) over a period between February 29, 2024 and April 4, 2024 (both days inclusive). With this, the shareholding of the bank in IMCL is 2.45 per cent, the bank said.

As on December 31, 2023, HDFC Bank had held 5.83 million shares, or 6.36 per cent stake, in IMCL, shareholding pattern data shows. The names of the buyers, however, could not be ascertained immediately.

At 11:18 am, IMCL was trading 16 per cent higher at Rs 241.25 as compared to 0.03 per cent decline in the Nifty 50. The stock was trading higher for a sixth straight day, surging 51 per cent during the period.

The counter saw huge trading volumes today with a combined 4.41 million shares, representing 4.8 per cent of total equity of IMCL, having changed hands on the NSE and BSE till the time of writing of this report.

The IMCL offers international standard medical care, delivering several multi specialties under one roof. The hospital offers world class treatment at an affordable cost, focusing on specific areas where it can optimise efforts and values. Transplants, cardiology, oncology, neurology and orthopedic with higher revenue prospects are some of the key specialties.

The hospital has received accreditations from the Joint Commission International (JCI), USA, for meeting international healthcare quality standards for patient care and management. JCI is the world's premier accreditation body for patient safety and provision of quality healthcare.

Apollo Hospitals Enterprise Limited (AHEL), along with its promoters, hold a 25 per cent stake in IMCL. The entity has significant operational, financial and managerial linkages with AHEL. Apollo Hospitals is one of the leading healthcare players that owns and operates one of the largest hospital chains in the country.

IMCL witnessed a healthy improvement in its operating metrics in April to December period of financial year 2023-23 (9MFY24), supported by increasing average revenue per operating bed (ARPOB), stable international patient footfalls, elective surgical procedures and price hikes undertaken by the hospital.

Recent price hikes and an increase in footfalls from international patients have supported IMCL's margins. During 9MFY24, the Operating Profit Before Interest, Taxes, Depreciation and Amortisation (OPBITDA) margins improved significantly to 15.6 per cent from 13.8 per cent in FY2023 due to better operating metrics and company-led cost initiatives.

IMCL also continues to be debt-free, which, along with healthy profit margins, has resulted in healthy coverage metrics. ICRA expects IMCL to continue demonstrating a healthy financial profile over the medium term, supported by robust operating metrics and regular price revisions.

The outlook on the long-term rating is 'Stable', reflecting ICRA's expectation that IMCL's revenues and accruals will be supported by its established position as a leading healthcare services provider, growing demand from international clients and good repute of IMCL's medical talent, the rating agency said in rationale.