IPO Synopsis
Global Health Limited, operating and managing hospitals under the Medanta brand, has filed preliminary papers with SEBI to raise funds through an IPO.
The initial public offering (IPO) consists of a fresh issue of equity shares worth Rs 500 crore, and an offer for sale (OFS) up to 4.84 crore equity shares.
As a part of the OFS, Anant Investments, an affiliate of private equity major Carlyle Group, will sell up to 4.33 crore equity shares and Global Health co-founder Sunil Sachdeva (jointly with Suman Sachdeva) will offload up to 51 lakh equity shares.
Kotal Mahindra Capital Company, Credit Suisse Securities (India), Jefferies India and JM Financial are the book running lead managers to the IPO.
Objective of the Issue
The proceeds from the fresh issue will be used to pay debt and general corporate purposes.
About Global Health Ltd
Global Health, founded by Naresh Trehan, a renowned cardiovascular and cardiothoracic surgeon, is a leading private multi-speciality tertiary care providers in the north and east regions of India with key specialties of cardiology and cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopaedics, liver transplant, and kidney and urology. Dr. Trehan has been awarded the prestigious Padma Bhushan and the Padma Shri, the third and fourth-highest civilian awards in India, and the BC Roy Award, in recognition of his distinguished contribution to medicine. Under the “Medanta” brand, the firm has a network of four operational hospitals in Gurugram, Indore, Ranchi and Lucknow, a hospital which is under construction with an operational outpatient facility in Patna, and one hospital in Noida is planned for development.
It provides healthcare services in over 30 medical specialties and engage over 1,100 doctors led by highly experienced department heads and operational hospitals have 2,176 installed beds. The Indian healthcare delivery industry is estimated to post a healthy 15-17% CAGR between FY21 and FY25 driven by pent up demand, strong fundamentals, and increasing affordability. In 2019, the firm had 1,722 installed beds, which grew to 2,176 installed beds by 2021, representing a growth of 26.36%. Upon operation of the in-patient department at the Patna hospital in FY 2022 and Noida hospital in FY 2025, the number of total installed beds is expected to exceed 3,500 at the end of FY2025 which will cater to domestic and international patients as part of the business strategy to capitalize on medical tourism.
Global Health Ltd Financial Status
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Revenue |
1,446.74 |
1,500.42 |
1,455.80 |
|
EBITDA |
222.85 |
230.45 |
217.90 |
|
PAT |
28.81 |
36.33 |
51.30 |
|
EPS (basic in Rs.) |
1.15 |
1.45 |
2.06 |
|
ROE |
2.08% |
2.69% |
3.96% |
|
ROCE |
5.10% |
6.90% |
- |
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Total Assets |
2,694.11 |
2,666.29 |
2,430.01 |
|
Share Capital |
49.59 |
49.35 |
49.13 |
|
Total Borrowings |
644.60 |
621.94 |
513.73 |
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Net cash generated from / (used in) operating activities |
241.77 |
175.07 |
165.55 |
|
Net cash from / (used in) investing activities |
-239.15 |
-87.07 |
-248.76 |
|
Net cash flow from / (used in) financing activities |
-80.72 |
-0.88 |
97.03 |
|
Net increase (decrease) in cash and cash equivalents |
-78.11 |
87.12 |
13.83 |
Peer Comparison
|
Name of the company |
Total Revenue (in Rs. crores) |
Basic EPS |
NAV Rs. per share |
PE |
RoNW % |
|
Global Health Limited* |
1,478.16 |
1.15 |
55.76 |
NA |
2.08% |
|
Apollo Hospitals Enterprise Limited |
10,605.00 |
10.74 |
334 |
410.71 |
2.85% |
|
Fortis Healthcare Limited |
4,076.68 |
-1.45 |
88.98 |
NA |
-0.84% |
|
Max Healthcare Institute Limited |
2,619.41 |
-1.59 |
58.37 |
NA |
-2.44% |
|
Narayana Hrudayalaya Limited |
2,610.52 |
-0.7 |
54.85 |
NA |
-1.28% |
Key Points of Global Health Ltd IPO -
Key Points
-
Strengths
1. Leading tertiary and quaternary care provider in India, well recognised for clinical expertise in particular in dealing with complicated cases.
2. Focus on Clinical Research and Academics
3. Doctor-led’ hospitals driven by skilled and experienced doctors who are among the best in the healthcare space
4. Large-scale hospitals with world-class infrastructure and high-end medical equipment and technology
5. Track record of strong operational and financial performance
6. Focus on under-served areas with dense population and presence in top or capital cities of large states (NCR, Lucknow and Patna)
7. Growth opportunities in existing facilities and diversification into new services, including digital health. -
Risks
1. Stringent restrictions to slow down the spread of Covid-19, including limitations on international and local travel.
2. Highly dependent on doctors, nurses and other healthcare professionals thus, failure to retain or attract staff may hurt business.
3. Failure to pass on high costs such as manpower cost, infrastructure maintenance and repair cost, high medical equipment cost to the patients.
4. Developing or to be developed facilities may experience delays in construction, in reaching full operational capacity.
5. Certain land parcels on which the hospital buildings and clinics operate are neither owned by us nor leased to us on a perpetual basis.
6. Regulatory reforms in the healthcare industry and associated uncertainty.
How to apply for an IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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FAQs
Global Health IPO details are yet to be announced.
Global Health IPO details are yet to be announced.
Global Health IPO details are yet to be announced.
The IPO issue comprises of a fresh issue of equity shares aggregating to Rs 500 crore, and an offer for sale of up to 4.84 crore equity shares.
Promoter of Global Health is Dr. Naresh Trehan
Global Health IPO details are yet to be announced.
Global Health IPO details are yet to be announced.
Kotak Mahindra Capital Company, Credit Suisse Securities (India), Jefferies India and JM Financial are the lead managers to the issue.
The proceeds from the fresh issue will be used to pay debt and general corporate purposes.
To apply for the IPO, follow the steps given below
1. Login to your 5paisa account and select the issue in the current IPO section
2. Enter the number of lots and price at which you wish to apply for
3. Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
4. You will receive a mandate notification to block funds in your UPI app
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