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GPT Healthcare IPO opens for subscription. Should you apply?

Synopsis

GPT Healthcare IPO: GPT Healthcare's IPO, valued at Rs 525 crore, opened for subscription. The company raised Rs 157 crore from anchor investors. Analysts advise subscribing for fair valuations, comprehensive services, and quality medical practices. The price band is Rs 177-186 per share.

GPT Healthcare's Rs 525 crore IPO opens for subscription. Should you apply?iStock
The initial public offer (IPO) of GPT Healthcare, which operates and manages mid-sized multispecialty hospitals under the ILS Hospitals brand, opened for subscription today. Prior to the issue opening, the company had raised Rs 157 crore from anchor investors.

Foreign and domestic institutions who participated in the anchor round were Kotak Mutual Fund, Axis Mutual Fund, DE Shaw, Societe Generale among others.

The proceeds from the fresh issue will be used for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company besides general corporate purposes.

Read more: Juniper Hotels IPO subscribed 11% on Day 1. Check GMP and other details

GPT Healthcare IPO review

Analysts advised investors to subscribe to the issue over fair valuations, comprehensive range of services and quality medical practices.

At the upper price band company is valuing at P/E of 39.1x with a market cap of Rs 1,526 crore post issue of equity shares and return on net worth of 23.7% in FY23.

"On the valuation front, we believe that the company is fairly priced. Thus, we recommend an Subscribe – Long Term rating to the IPO," said Anand Rathi.

Also read: GPT Healthcare garners Rs 157 cr from anchor investors ahead of IPO


GPT Healthcare IPO price band

Kolkata-based GPT Healthcare has fixed a price band of Rs 177-186 per share for its Rs 525 crore IPO. Investors can make bids for 80 shares in one lot and in multiples thereafter.

In the issue, 50% will be available for allocation on a proportionate basis to qualified institutional buyers, 15% for non-institutional bidders, and 35% for retail investors.

GPT Healthcare IPO GMP

In the unlisted market, the company's shares have no GMP currently.

Other details

GPT Healthcare operates four full service multispecialty hospitals, with a total capacity of 561 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.

The company competes with listed industry peers such as Global Health, Krishna Institute of Medical Sciences, Jupiter LifeLine Hospitals, Yatharth Hospital among others.

Going ahead, the company intends to strengthen its existing hospitals by further balancing specialty mix, deepening its expertise in selective specialties and adding new specialties and services

Its total income increased 7% year-on-year to Rs 367 crore in fiscal 2023, primarily due to a rise in income from hospital services. Net profit for the same period, however, fell to Rs 39 crore versus Rs 42 crore a year ago.

Revenue from operations (ex-Covid) grew at a CAGR of 53.87% over FY21-23 and the ROCE stood at 26.09% for FY23.

JM Financial is the sole book running lead manager and Link Intime India is the registrar of the offer

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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(You can now subscribe to our ETMarkets WhatsApp channel)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

...more