GPT Healthcare IPO: SEBI Application Resubmitted
GPT Healthcare IPO
GPT Healthcare’s Upcoming IPO: A Comprehensive Look at the Healthcare Company’s Second Attempt to Go Public
Kolkata-based GPT Healthcare has made a significant move in the financial world by announcing its intention to launch an Initial Public Offering (IPO).
This strategic decision is aimed at raising essential capital to fund the company’s growth and expansion plans.
Notably, this marks the second time the company has filed draft papers for its IPO, reflecting its determination to make its debut in the stock market.
In this article, we will explore the details and implications of GPT Healthcare’s upcoming IPO, delve into the company’s background, and analyze its financial performance.
The IPO in Focus:
GPT Healthcare’s IPO is expected to consist of a combination of fresh equity shares and an Offer for Sale (OFS) component.
The company has plans to issue fresh equity shares worth Rs 40 crore, signifying its eagerness to secure capital for specific purposes.
Additionally, a substantial 2.6 crore equity shares will be made available for sale under the OFS mechanism by Banyantree Growth Capital II LLC.
This aspect of the IPO suggests a crucial objective – providing an exit opportunity for the private equity firm, Banyantree Growth Capital.
This IPO venture is not GPT Healthcare’s first attempt to go public. In a previous endeavor, the company submitted IPO papers in October 2021, and these papers received approval from the Securities and Exchange Board of India (SEBI) in January 2022.
The scale of the initial offering was substantial, amounting to approximately Rs 500 crore. Currently, the promoter of GPT Healthcare, GPT Sons, holds a substantial 67.34 percent stake in the multispecialty hospital chain. The remaining ownership is attributed to Banyantree Growth Capital.
Utilization of IPO Funds:
A critical question surrounding any IPO is how the raised capital will be utilized. In GPT Healthcare’s case, the company plans to allocate Rs 30 crore of the IPO funds towards debt repayment. Managing debt is often a crucial step for companies seeking financial stability and flexibility.
The remaining portion of the funds is intended for general corporate purposes. This broad category may encompass various needs, such as expansion, research and development, marketing, and other strategic initiatives to further the company’s growth and objectives.
Key Players in the IPO:
The success of an IPO often hinges on the involvement of key financial institutions and service providers.
For GPT Healthcare, JM Financial has been selected as the exclusive merchant banker to facilitate the IPO. A merchant banker plays a pivotal role in the IPO process, assisting with tasks such as pricing the shares, structuring the offering, and ensuring regulatory compliance.
Additionally, Link Intime India has been appointed as the registrar to the offer. As a registrar, this institution will play an essential role in the logistics of the IPO, including the management of share allotments and refunds.
An Overview of GPT Healthcare:
GPT Healthcare is a healthcare company based in Kolkata, India. The company’s primary focus is on operating a chain of four mid-sized full-service multispecialty hospitals under the well-known brand name ILS Hospitals. These hospitals are strategically located in Eastern India, serving a diverse and expansive population.
One of the essential attributes of GPT Healthcare is the combined bed capacity of its hospitals, which totals an impressive 561 beds.
This substantial capacity underscores the company’s commitment to providing comprehensive healthcare services to the communities it serves. It is a significant part of their mission to make quality healthcare accessible to a wide range of patients.
Financial Performance:
GPT Healthcare’s financial performance has been a key point of interest for potential investors. A look at the company’s revenue and profit figures over recent years provides valuable insights into its financial health and growth trajectory.
From the fiscal year 2021 to the fiscal year 2023, GPT Healthcare recorded robust revenue growth, with operations generating revenue at a Compound Annual Growth Rate (CAGR) of 22 percent. This growth trend resulted in a substantial revenue figure of Rs 361 crore during the last fiscal year.
Furthermore, the company’s profits have shown remarkable growth during the same period. With a noteworthy CAGR of 36 percent, GPT Healthcare’s profits surged to Rs 39 crore in the last fiscal year. This impressive growth in profits indicates the company’s ability to effectively manage its operations, control costs, and generate sustainable earnings.
One factor to consider is the company’s EBITDA margin, which experienced some volatility over the years. However, it is noteworthy that GPT Healthcare has consistently maintained an EBITDA margin above 21 percent.
This is a positive sign, indicating the company’s ability to manage its operating expenses efficiently and generate robust earnings.
Recent Financial Performance:
To gain a more up-to-date perspective on GPT Healthcare’s financial performance, we can look at the figures for the first three months ending in June of the fiscal year 2024. During this period, the company reported a profit of Rs 9.98 crore on revenue of Rs 96.2 crore.
This marks a notable improvement from the corresponding period in the previous fiscal year, where the company reported a profit of Rs 7.67 crore on revenue of Rs 82.5 crore.
These figures suggest a positive growth trend and reflect the company’s ability to continue generating healthy profits.
Implications and Future Prospects:
The decision of GPT Healthcare to go public via an IPO is a significant step for the company, its existing stakeholders, and prospective investors.
It opens up opportunities for individuals and institutions to become part of the company’s growth story and share in its future success.
For existing shareholders, including the promoter, GPT Sons, the IPO offers a means to potentially monetize their investments and realize returns on their holdings.
On the other hand, for new investors, the IPO provides a chance to invest in a company with a track record of revenue and profit growth.
GPT Healthcare’s ability to consistently maintain an EBITDA margin above 21 percent demonstrates its commitment to efficient operations and profitability.
The healthcare industry in India continues to offer promising prospects. With a large and growing population, there is an increasing demand for high-quality healthcare services.
GPT Healthcare, with its network of multispecialty hospitals, is well-positioned to tap into this demand and expand its footprint in the industry.
Final Remarks
GPT Healthcare’s decision to pursue its IPO is a significant development in the healthcare and financial sectors. This strategic move reflects the company’s ambition to raise capital, manage debt, and fuel its expansion plans.
With a track record of revenue and profit growth, as well as a commitment to efficiency and quality healthcare services, GPT Healthcare presents an intriguing investment opportunity for those considering participation in its IPO.
The successful execution of the IPO and the subsequent utilization of the raised capital will be closely monitored by investors and industry observers alike, as it is likely to influence the company’s growth trajectory in the coming years.
