3 Hospital Chains to raise Rs.6,300 crore via IPOs
With hospital stocks doing extremely well in the Indian markets in the year 2021, there are a slew of hospital company IPOs lined up. Since January 2021, listed hospital plays like Apollo Hospitals, Fortis Hospitals and Max Healthcare have all outperformed the Nifty by a margin. The rising health consciousness post the pandemic and the more concerted move towards organized healthcare has been a blessing in disguise for hospitals.
Three leading hospitals viz. Cloud Nine Hospitals, Medanta Hospitals and Park Group are planning IPOs in the next 6-8 weeks. Between them, these 3 hospitals are expected to raise close to Rs.6,300 crore via the IPO route. Here is a quick rundown.
Cloud Nine Hospitals IPO
Cloud Nine is planning to raise up to Rs.3,500 crore through the IPO route. Based out of Bengaluru, Cloud Nine operates a chain of hospitals for women, children and for fertility treatment. Cloud Nine is already backed by big PE names like Sequoia, True North and New Quest. It is currently valued at around $1 billion and will use the proceeds of the IPO to add another 6 facilities to take their total hospital count to 24.
Gurugram-based Medanta was founded by high-profile heart specialist Dr. Naresh Trehan. Medanta runs the largest single location private hospital with 1,300 beds, including 246 critical care beds. Like Cloud Nine, Medanta is also backed by extremely strong PE investors Carlyle and Temasek. Medanta will look to raise about Rs.2,000 crore through the IPO.
Park Hospitals IPO
Park Hospitals is again based in North India and runs a chain of around 12 hospitals. This will be the smallest of the three IPOs and would look to raise around Rs.800 crore through the IPO route.
With private hospitals seeing a moderation in capex, the time is ripe for them to show good ROI and get better valuations. IPO route can be the best way to do that.
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