GPT Healthcare to Launch IPO on Feb 22 Making It Third Healthcare D-Street Debut of 2024

GPT Healthcare aims to raise around INR 485.14 Cr on the upper band price of the IPO. With this, the total market capitalization will grow to INR 1,500 Cr.

Kolkata-based GPT Healthcare is poised to launch its initial public offering (IPO) on February 22, 2024, with the subscription period extending until February 26, 2024. The price band for the upcoming IPO has been set at INR 177-186.

The final allotment for the GPT Healthcare IPO is anticipated to be determined by Tuesday, February 27, 2024.

Subsequently, the IPO is scheduled to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) with a tentative listing date fixed for Thursday, February 29, 2024.

A one-day bidding will open for anchor investors on Wednesday, February 21.

Details of GPT Healthcare IPO

The GPT Healthcare IPO will be a book-built issue, featuring a fresh issue of INR 40 Cr alongside an offer for sale of 2.61 Cr shares.

The company aims to raise around INR 485.14 Cr on the upper band price of the IPO. With this, the total market capitalization will grow to INR 1,500 Cr.

Reportedly, the healthcare company plans to use INR 30 Cr of fresh issue proceeds to repay debt and the remaining will be used for general corporate purposes.

The allocation structure reserves approximately 50% of the issue for Qualified Institutional Buyers (QIBs).

While retail investors can subscribe to the share with no less than 35% earmarked for them. A minimum of 15% has been set aside for Non-Institutional Investors (NIIs).

Per reports, BanyanTree Growth Capital II LLC, a Mauritius-based private equity firm intends to exit its investment in the healthcare group.

Through this IPO, it will divest its entire ownership stake of more than 2.60 Cr equity shares, constituting 32.64% of the paid-up equity.

Promoters GPT Sons and the Tantia family collectively hold 67.34% of the shares in the healthcare services provider.

GPT Healthcare Network

Under the brand of ILS Hospitals, GPT Healthcare Limited operates a network of mid-sized, multi-specialty hospitals in Eastern India focused on secondary and tertiary care.

The healthcare company offers facilities spanning over 35 specialties and super-specialties, encompassing internal medicine, nephrology, laparoscopic surgery, gynecology, orthopedics, interventional cardiology, neurology, pediatrics, and more. Additionally, it offers integrated diagnostic services and pharmacies.

GPT operates four multispecialty hospitals with a total bed capacity of 561 in Dum Dum, Salt Lake, and Howrah in West Bengal and Agartala in Tripura.

The net proceeds from the IPO will primarily be allocated towards repaying or prepaying a portion or all of the outstanding borrowings obtained from banks and financial institutions. The remainder will be utilized for general corporate purposes.

Looking back, in the financial year that ended on March 31, 2023, GPT Healthcare Limited witnessed a modest 7.11% increase in revenue, while its profit after tax (PAT) experienced a marginal decline of -6.37%.

Jm Financial Limited assumes the role of the book-running lead manager for the GPT Healthcare IPO, while Link Intime India Private Ltd will serve as the registrar for the issue.

Investors are closely monitoring the IPO debut of GPT Healthcare Limited, which seeks to capitalize on the growing demand for quality healthcare services in Eastern India.

Recent Healthcare IPOs

GPT Healthcare is the third IPO in the healthcare domain since the beginning of 2024.

Recently, Entero Healthcare Solutions, a distributor of healthcare products closed its INR 1,600 Cr IPO. On the final day of subscription, the issue was subscribed 1.53 times.

The price range for the offer was INR 1,195-1,258 per share.

The IPO saw a muted response on the first days. However, it managed to close successfully as institutional investors came forward for last-day bidding.

In January, health insurance TPA Medi-assist made its D-street debut. The offer price for the IPO was within the price range of INR 397-418 per share, with a lot size comprising 35 shares.

The bidding for the IPO remained open from January 15 to January 17. The company's objective was to generate approximately INR 1,171.58 Cr through its primary offering, which exclusively constituted an offer-for-sale (OFS) of over 2.80 Cr equity shares.