The eagerly awaited initial public offering (IPO) of GPT Healthcare Ltd, a Kolkata-based hospital chain, opens for subscription today, marking a significant milestone in the company’s journey. To raise approximately Rs 40 crore through a combination of fresh issues and Offer For Sale (OFS), investors are keen to explore the potential of this healthcare venture.
Key Details of the IPO
The IPO entails a fresh issue of shares worth Rs 40 crore, alongside an Offer For Sale (OFS) of up to 2.61 crore shares, with a price band set at Rs 177-186 per share. Notably, the proceeds from the fresh issue will primarily be utilized for debt repayment, reflecting the company’s strategic focus on strengthening its financial position.
Stakeholder Dynamics: BanyanTree Growth Capital II LLC
BanyanTree Growth Capital II LLC, a Mauritius-based private equity fund, is set to divest its entire shareholding of over 2.60 crore equity shares, representing 32.64 percent of the paid-up equity. This move underscores the confidence of existing stakeholders in GPT Healthcare’s growth trajectory and its potential to deliver value to investors.
Subscription and Allotment Timeline
Investors can participate in the IPO from February 22 to 26, with allotments expected on February 27 and refunds slated for February 28. The listing of GPT Healthcare shares on exchanges is anticipated on February 29, offering investors an opportunity to capitalize on the company’s debut in the public markets.
Company Profile: GPT Healthcare’s Unique Value Proposition
GPT Healthcare operates a network of mid-sized full-service hospitals under the ILS brand, focusing on providing integrated healthcare services with a specialization in secondary and tertiary care. The company’s commitment to delivering quality healthcare solutions positions it as a key player in India’s burgeoning healthcare sector.
Financial Performance: A Testament to Growth
GPT Healthcare has demonstrated robust financial performance, with a remarkable 21.95 per cent Compound Annual Growth Rate (CAGR) in revenue from FY21 to FY23, culminating in revenues of Rs 361.04 crore in FY23. Moreover, the company has witnessed substantial growth in both profit after tax and EBITDA during the same period, underscoring its operational efficiency and financial resilience.
Strategic Imperatives: Addressing Debt and Driving Growth
The utilization of proceeds from the IPO for debt repayment reflects GPT Healthcare’s proactive approach towards strengthening its balance sheet and enhancing financial stability. By reducing debt burdens, the company aims to unlock resources for future investments and expansion initiatives, thereby fueling its growth trajectory.
Conclusion: Charting the Path Forward
As GPT Healthcare embarks on its IPO journey, investors have an opportunity to participate in the company’s growth story and contribute to its success in India’s dynamic healthcare landscape. With a strategic focus on debt reduction, operational excellence, and market expansion, GPT Healthcare is poised to emerge as a leading player in the healthcare sector, delivering value to stakeholders and contributing to the nation’s healthcare ecosystem.
-Prisha Jaiswal