GPT Healthcare IPO: From financials to key risks, here are 10 things to know from RHP before investing

GPT Healthcare Ltd IPO opened for subscription on 22 February and will remain open for bidders till 26th February 2024 i.e. till Monday next week. The mid-sized multi-specialty hospital has fixed the price band of its public issue at ₹177 to ₹186 per equity share.'

Here are 10 things to know from RHP before investing-

GPT Healthcare IPO: Subscription details

GPT Healthcare IPO is open for subscription and will close on 26 February. The price band of the issue is ₹177 to ₹186 per equity share. The minimum lot size for an application is 80 Shares. The minimum amount of investment required by retail investors is ₹14,880. The minimum lot size investment for NII is 14 lots (1,120 shares), amounting to ₹208,320, and for NII, it is 68 lots (5,440 shares), amounting to ₹1,011,840.

GPT Healthcare IPO: Objectives of the issue

The mid-sized multi-specialty hospital aims to raise 525.14 crore from its public offer out of which only ₹40 crore is expected via the issuance of fresh shares. The remaining ₹485.14 crore is reserved for the offer for sale (OFS).

While proceeds from OFS will not come to the company, the Net Proceeds from fresh issue of shares will be used towards 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.

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GPT Healthcare IPO- About the Company

GPT Healthcare, founded by Dwarika Prasad Tantia, Dr Om Tantia and Shree Gopal Tantia started with a 8 bed hospital at Salt Lake, Kolkata in 2000.

Today it 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, orthopedics and joint replacements, interventional cardiology, neurology, neurology, neurosurgery, pediatrics and neonatology.

It also offers integrated diagnostic services and pharmacies.

GPT Healthcare's hospitals are located in four location, namely Kolkata (West Bengal) , Agartala (Tripura), Dum Dum, Kolkata (West Bengal) and Howrah (West Bengal)

GPT Healthcare Limited that operates a chain of mid-sized, multi-specialty, full-service hospitals in Eastern India under the ILS Hospitals brand, providing integrated healthcare services focusing on secondary and tertiary care.

GPT Healthcare IPO: Key risks

1.GPT Healthcare derives a significant portion of its revenue from operations from its hospitals situated in West Bengal as these serve a significant percentage of our patients. Further, all its hospitals are located in the eastern region of India.

Any impact on the revenue from these hospitals or any change in the economic or political conditions of West Bengal could materially affect its business, financial condition, results of operations and cash flows.

2. GPT Healthcare is significantly dependent on certain specialties. Any impact on its revenue from such specialties could have a material adverse effect on its business, financial condition, results of operations and cash flows.

3. GPT Healthcare is dependent on its healthcare professionals, including doctors that it engages on a consultancy basis.

Loss of or its inability to attract or retain such persons could adversely affect its business, financial condition.

GPT Healthcare IPO -Financials-

GPT Healthcare total income increased 7.3% to ₹361.04 Croe in fiscal year 2023 from ₹ 337.42 crore in fiscal year 2022, primarily due to the increases in income from hospital services, aided by increase in patient volume; increase in income from pharmacy sales.

For the six months ended September 30, 2023, revenue from operations stood at ₹ 204.2 Crore and net profit at ₹ 23.5 Crore million.

GPT Healthcare profit after tax (PAT) dropped by -6.37% during the financial year ending with March 31, 2023 over Financial Year ending March 31, 2022. However net profit at ₹9.97 crore during June'2023 quarter grew over ₹7.67 Crore during June'22 quarter.

GPT Healthcare IPO Promoters

GPT Healthcare promoters include GPT Sons Private Limited, Dwarika Prasad Tantia, Dr. Om Tantia, and Shree Gopal Tantia .

GPT Healthcare IPO: Industry Landscape

Healthcare delivery industry to grow at a CAGR of 9-11% over next five years

Healthcare delivery industry estimated to grow to ~ ₹6.3 trillion in fiscal 2024

Eastern and North-eastern region to witness strong growth in healthcare sector. Eastern and North-eastern states such as Bihar, Jharkhand, Odisha, Manipur, Assam, Nagaland, Arunachal Pradesh and Meghalaya have ranked lower on Niti Ayog health index indicating under penetration of healthcare facilities

Growing health insurance penetration to propel demand

GPT Healthcare IPO: Registrar, Book running manager

JM Financial Limited is the book running lead manager of the GPT Healthcare IPO, while Link Intime India Private Ltd is the registrar for the issue

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GPT Healthcare IPO: Allotment and Listing details

The allotment for the GPT Healthcare IPO is expected to be finalized on Tuesday, February 27, 2024. GPT Healthcare IPO is likely to list on BSE, NSE with tentative listing date fixed as Thursday, February 29, 2024.

GPT Healthcare IPO: GMP

GPT Healthcare IPO GMP or grey market premium today, stood at ₹13 per share as per Investorgain.com. This indicates that GPT Healthcare shares are trading at a premium of 6.99% to the issue price of ₹186, in the grey market and also that the street is expecting listing of shares happening at ₹199 apiece.