GPT Healthcare files IPO papers with SEBI

Our Bureau Kolkata | Updated on October 18, 2021

Market sources say fund raise could be anywhere between ₹450–500 crore

Kolkata-based GPT Healthcare which operates and manages mid-sized multispecialty hospitals under the ILS Hospitals brand, has filed a draft red herring prospectus with SEBI to raise funds through an initial public offer (IPO).

The IPO consists of a fresh issue of equity shares aggregating to ₹17.5 crore, and an offer for sale of up to 29.89 million equity shares, according to the draft red herring prospectus (DRHP).

As a part of the OFS, BanyanTree Growth Capital II, a Mauritius-based structured private equity, will sell up to 26.08 million equity shares and GPT Sons, promoter, will offload up to 3.80 million equity shares. The private equity will be fully exiting its shareholding via the IPO.

Also see: Healthcare players ride the IPO wave

As per market sources, the fund raise through the IPO could be anywhere between ₹450–500 crore.

At present, GPT Sons holds 67.34 per cent stake in GPT Healthcare and BanyanTree Growth Capital II owns 32.64 per cent stake in the company.

Proceeds from the fresh issue will be used to purchase medical equipment amounting to ₹13.2 crore over the next two years besides general corporate purposes, the company said in DRHP.

GPT Healthcare

GPT Healthcare, founded by Dwarika Prasad Tantia and Dr Om Tantia, started as an eight-bed hospital at Salt Lake, Kolkata, in 2000. It currently operates a network of three hospitals under the ILS Hospital brand in West Bengal and one in Tripura with a total capacity of 556 beds, and attends to over 35 specialties and super specialties such as internal medicine, diabetology, gastroenterology, orthopaedics and joint replacements, interventional cardiology, neurology, neurosurgery, paediatrics and neonatology.

It intends to grow the urology, neurology, interventional cardiology and oncology specialties and expand its network of hospitals into markets in eastern India and adjacent regions via greenfield and brownfield projects.

Asset light model

The company, which focuses on developing an asset light model, recently signed an MoU and long-term lease agreement for a hospital with 140 beds in Ranchi at an estimated investment of ₹50 crore. Its Ranchi Hospital is expected commence operations in 2025. This apart, it is looking to expand its presence in Lucknow, Varanasi, Patna, Guwahati, Cuttack and Raipur.

In FY21, its total income increased by 15 per cent to ₹249 crore (₹216 crore in FY20) due to the increase in income from hospital services, majorly from private patients, and income from pharmacy sales as well as non-operating income. The net profit stood at ₹21 crore for FY21, against ₹11 crore during the year ago period.

Dam Capital Advisors Limited, and SBI Capital Market Limited are the book running lead managers to the IPO.

Published on October 18, 2021

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