Kolkata-based GPT Healthcare, which operates and manages hospitals under the ILS Hospitals brand, has received approval from markets regulator SEBI to launch its initial public offering (IPO).
The IPO consists of a fresh issue of equity shares aggregating to ₹17.5 crore, and an offer for sale of up to 29,887,486 equity shares, according to the draft red herring prospectus (DRHP).
As a part of the OFS, BanyanTree Growth Capital II, LLC, a Mauritius-based structured private equity, will sell up to 26,082,786 equity shares and GPT Sons Pvt Ltd, promoter will offload up to 3,804,700 equity shares.
According to market sources, the IPO is expected to fetch between ₹450 and ₹500 crore.
At present, GPT Sons holds 67.34 percent stake in GPT Healthcare and BanyanTree Growth Capital II, LLC owns 32.64 percent stake in the company.
Proceeds from the fresh issue will be used to purchase medical equipment aggregating to ₹13.2 crore and general corporate purposes.
Expansion plans
GPT Healthcare operates a chain of mid-size hospitals in eastern India under the ‘ILS Hospitals’ brand and provide integrated healthcare services, with a focus on secondary and tertiary care. As of September 30, 2021, it operates four multi-speciality hospitals, with a total capacity of 556 beds.
It recently signed an MoU and a long-term lease agreement for a hospital with 140 beds in Ranchi with an investment of ₹50 crore. Its Ranchi hospital is expected to commence operations in 2025. Other locations it is considering to expand are Varanasi, Patna, Raipur, Guwahati, Kanpur and Cuttack.
Its total income increased by nearly 15 per cent to ₹249 crore in FY21 from ₹216 crore in FY20, primarily due to the increase in income from hospital services, income from pharmacy sales, as well as non-operating income.
Dam Capital Advisors Ltd and SBI Capital Market Ltd are the book running lead managers to the IPO.