 "Health workers arrange medical equipment at a hospital in Hyderabad")
Kolkata-based GPT Healthcare, which runs ILS Hospitals, is eyeing to raise around Rs 500 crore for further expansion in the eastern region.
The company revealed the price band for its upcoming initial public offering (IPO), set at Rs 177 to 188 per share. The subscription window is scheduled to open on February 22 and close on February 26. The IPO's price band at the upper-end will be an issue size of Rs 525 crore, with Rs 40 crore allocated to the fresh issue and the remaining Rs 485 crore for the offer for sale (OFS). Proceeds from the IPO will be used to pay down debt and fund expansion plans in Raipur and Ranchi.
The issue is a combination of a fresh issue of 0.22 crore shares and an offer for sale of 2.61 crore shares.
From the promoters' side, GPT Sons Private will sell 5.38 crore equity shares and from Investor Selling Shareholder BanyanTree Growth Capital II, LLC will sell 2.60 crore equity shares.
For the period March 31, 2023, to March 31, 2022, the company’s profit after tax (PAT) dropped by 6.4 per cent, standing at Rs 39 crore compared to Rs 41.66 crore in 2022, while its revenue from operations climbed by 7.0 per cent, reaching Rs 361.03 crore.
GPT Healthcare has reported a Compound Annual Growth Rate (CAGR) of 22 per cent in revenue growth during FY 21-23. The return metrics, including Return on Equity (ROE) at 24 per cent and Return on Capital Employed (ROCE) of 26 per cent in FY23.
The company's expansion plans include two new hospitals in Raipur and Ranchi, with a combined capacity of 330 beds. Additionally, GPT Healthcare is looking to acquire hospitals in Patna, Jamshedpur, and Bhubaneshwar to further strengthen its presence in Eastern India.
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Investor categories for GPT Healthcare's IPO include 50 per cent for Qualified Institutional Buyers (QIBs), totaling Rs 263 crore, with 60 per cent reserved for anchor investors, amounting to Rs 158 crore. The High Net Worth Individual (HNI) portion constitutes 15 per cent of the net offer size, equivalent to Rs 79 crore, while the retail portion comprises 35 per cent, totaling Rs 184 crore.
JM Financial is the book running lead manager of the company, while Link Intime India Private is the registrar for the issue.
As of fiscal 2023, the company operates three full-service hospitals in West Bengal (Dumdum, Salt Lake, and Howrah) and an additional hospital in Agartala, Tripura, under the ILS brand, boasting a total capacity of 561 beds.
