GPT Healthcare Limited IPO Details
- Issue type: Main-board IPO
- Issue size: ₹525.14 Crore
- Fresh issue: ₹40.00 Crore
- Offer for sale (OFS): ₹485.14 Crore (26,082,786 equity shares)
- Price band: ₹177 – ₹186 per share
- Minimum order quantity: 80 Shares
- Issue open date: February 22, 2024
- Issue close date: February 26, 2024
- Expected listing date: February 29, 2024
- BSE Code: 543610
- NSE Code: GPTHEALTH
- Registrar: Link Intime India Private Ltd
GPT Healthcare Limited IPO Timeline
| IPO Open Date: | February 22, 2024 |
| IPO Close Date: | February 26, 2024 |
| Basis of Allotment: | February 27, 2024 |
| Refunds: | February 28, 2024 |
| Credit to Demat Account: | February 28, 2024 |
| IPO Listing Date: | February 29, 2024 |
About
Established back in 1989, GPT Healthcare Limited emerged as a pioneer, crafting a network of mid-sized, multi-specialty hospitals across Eastern India under the esteemed banner of ILS Hospitals. Their commitment lies in delivering holistic healthcare solutions, focusing predominantly on secondary and tertiary care.
Nestled in the vibrant city of Kolkata, West Bengal, this enterprise stands tall, offering an extensive array of medical services spanning over 35 specialized domains. From the intricacies of internal medicine and diabetology to the intricacies of nephrology, including cutting-edge kidney transplant procedures, from the finesse of laparoscopic and general surgery to the delicate realm of gynaecology and obstetrics, their expertise knows no bounds. They delve into intensive care, delve into the depths of gastroenterology, mend bones with precision through orthopaedics and joint replacement, tackle cardiac complexities with interventional cardiology, unravel neurological mysteries, cater to the needs of young ones with paediatrics and neonatology, and beyond. Moreover, they seamlessly integrate diagnostic services and pharmacies into their framework, ensuring comprehensive care under one roof.
GPT Healthcare’s footprint extends across four dynamic cities:
- Salt Lake, Kolkata (West Bengal) – boasting 85 beds, including 17 beds earmarked for various ICUs and HDUs (as of June 30, 2023).
- Agartala (Tripura) – embracing 205 beds (as of June 30, 2023), inclusive of 66 beds dedicated to various ICUs and HDUs.
- Dum Dum, Kolkata (West Bengal) – accommodating 155 beds, encompassing 53 beds for various ICUs and HDUs, as of June 30, 2023.
- Howrah (West Bengal) – with a capacity of 116 beds, housing 43 beds in assorted ICUs and HDUs, as of June 30, 2023.
As of June 30, 2023, the enterprise proudly oversees four multidisciplinary hospitals, collectively offering a robust capacity of 561 beds. Their commitment to excellence is mirrored in their expansive repertoire of healthcare services spanning over 35 specialized domains.
By June 30, 2023, the company boasted a workforce of 1,855 dedicated individuals, comprising 85 full-time consultants and 465 visiting consultants, all united in their mission to redefine healthcare standards.
OBJECTIVE
- Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company from banks and financial institutions; and
- General corporate purposes.
POSITIVE
- Growing healthcare sector: The Indian healthcare sector is expected to grow at a CAGR of 11-12% over the next five years, driven by rising disposable incomes, increasing awareness about healthcare, and an ageing population. This presents a significant growth opportunity for GPT Healthcare.
- Established brand and track record: GPT Healthcare operates a chain of 10 hospitals under the ILS Hospitals brand with a strong presence in Eastern India. This established brand and operational experience could attract investors.
- Focus on secondary and tertiary care: The company focuses on secondary and tertiary care, which are higher-margin segments compared to primary care. This could improve profitability in the long run.
- Experienced management team: The company has an experienced management team with a proven track record in the healthcare industry.
- Strong financials: The company has shown consistent revenue and profit growth in recent years.
NEGATIVE
- High valuation: The IPO is priced at a P/E ratio of 24.9x based on FY23 EPS, which is considered to be on the higher side compared to its peers.
- Limited geographical presence: The company currently operates only in Eastern India, which limits its growth potential compared to pan-India players.
- Competition: The Indian healthcare sector is highly competitive with established players and new entrants. This could put pressure on GPT Healthcare’s margins and market share.
- Dependence on key personnel: The company’s success is highly dependent on the skills and experience of its key management personnel.
- Uncertain regulatory environment: The Indian healthcare sector is subject to frequent regulatory changes, which could impact the company’s operations and profitability.
So, how does GPT Healthcare Limited IPO Fare in Terms of Financials ?
Financial Details
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 332.09 | 326.76 | 323.22 | 317.21 |
| Revenue | 206.70 | 366.73 | 342.40 | 248.86 |
| Profit After Tax | 23.49 | 39.01 | 41.66 | 21.09 |
| Net Worth | 171.43 | 164.14 | 156.96 | 132.68 |
| Reserves and Surplus | 92.75 | 85.46 | 78.28 | 75.96 |
| Total Borrowing | 55.57 | 64.67 | 95.52 | 122.93 |
| Amount in ₹ Crore | ||||
FINANCIAL REVIEW
Positives:
- Revenue growth: Revenue has seen a significant increase of 7% in the past year, indicating positive business performance and potential for further growth.
- Profitability: While profit after tax has slightly decreased compared to the previous year, it remains positive, demonstrating the company’s ability to generate earnings.
- Improving financial stability: Net worth and reserves & surplus have seen consistent growth, indicating financial stability and potentially strong shareholder value creation.
- Reduced borrowing: Total borrowing has decreased slightly, suggesting improved debt management. This is a positive sign for the company’s financial health.
GPT Healthcare Limited IPO Valuation
| Earning Per Share (EPS): | ₹4.88 per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 23.77% |
| Net Asset Value (NAV): | ₹20.54 per Equity Share |
GPT Healthcare Limited IPO – SWOT Analysis
Strengths
- Established brand and strong presence in Eastern India: GPT Healthcare has been operating since 1989 and has a well-established brand in Eastern India with a network of 4 hospitals.
- Diverse range of services: The company offers a comprehensive range of healthcare services in over 35 specialties and super-specialties, catering to a wide range of patient needs.
- Integrated healthcare services: GPT Healthcare provides integrated services including diagnostics and pharmacies alongside hospital care, offering a convenient and comprehensive experience for patients.
- Experienced workforce: The company has a large workforce with diverse expertise, including full-time and visiting consultants.
- Recent revenue growth: Revenue has shown a significant increase in the past year, indicating positive business performance.
Weaknesses
- Limited geographical reach: Currently operates only in Eastern India, limiting growth potential compared to pan-India players.
- High debt-to-equity ratio (needs further analysis): High debt levels could increase financial risk and limit the company’s ability to invest in growth.
- Moderate profit margins (needs further analysis): Profit margins might be lower than competitors, impacting long-term profitability.
- Dependence on key personnel: The company’s success might be highly dependent on the skills and experience of its key management team.
- Susceptibility to regulatory changes: The Indian healthcare sector is subject to frequent regulatory changes, which could impact the company’s operations and profitability.
Opportunities
- Growing healthcare sector: The Indian healthcare sector is expected to grow significantly in the coming years, creating opportunities for expansion and market share growth.
- Increased focus on secondary and tertiary care: The company’s focus on secondary and tertiary care, which are higher-margin segments, could improve profitability in the long run.
- Adoption of digital healthcare: GPT Healthcare can leverage digital technologies to improve efficiency, patient care, and reach new markets.
- Expansion into new geographies: Expanding beyond Eastern India could unlock significant growth potential.
- Partnerships and acquisitions: Partnerships with other healthcare providers or acquisitions could accelerate growth and diversification.
Threats
- Competition: The Indian healthcare sector is highly competitive with established players and new entrants, putting pressure on GPT Healthcare’s margins and market share.
- Regulatory changes: Frequent changes in regulations could increase operational costs and uncertainties.
- Economic slowdown: An economic slowdown could impact patient spending and demand for healthcare services.
- Rising healthcare costs: Rising costs of medical supplies, equipment, and personnel could impact profitability.
- Dependence on skilled workforce: Attracting and retaining skilled healthcare professionals could be challenging in a competitive market.
COMPETITIVE ANALYSIS: MARKET PEERS
Here are some of the key market peers of Juniper Hotels Limited IPO:
Peers:
- Global Health Limited
- Krishna Institute of Medical Sciences Limited
- Jupiter Life Line Hospitals Limited
- Yatharth Hospital & Trauma Care Services Limited
- Kovai Medical Center & Hospital Limited
- Shalby Limited
GPT Healthcare Limited IPO GMP
- Grey market premium as on 22-02-2024= Rs – / Share
Disclaimer:
- IPO Grey Market Premium (GPT Healthcare Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.
GPT Healthcare Limited IPO
🔴 Live Subscription Status 🔴
22/02/2024 10:00 AM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | ||||
| Non Institutional Investors(NIIs) | ||||
| Retail Individual Investors(RIIs) | ||||
| Employees | ||||
| Total |
FINAL TAKEAWAY
- May APPly
HOW APPLY IPO USING DEMAT , UPI, ASBA, NET BANKING ETC..?
How to apply IPO using Bhim UPI app or any UPI app?
How to apply IPO Using KOTAK Bank (ASBA)?
Apply IPO using Upstox mobile app.
How to apply IPO using Bhim UPI app in Upstox?
These are simple and effective steps that increase your IPO allotment chances. Check our page on how to improve IPO allotment chances.
I have a lot of other things that also need to be considered and those are something that I will cover in my next post.
Happy investing!🤩
