GPT Healthcare Ltd IPO

Upcoming DRHP

IPO Synopsis

IPO synopsis:
GPT Healthcare has filed its DRHP with SEBI for an IPO worth Rs.450 crore- Rs.500 crore. The IPO comprises of a fresh issue worth Rs. 17.5 crore and an offer for sale of up to 29.89 million equity shares. The book running lead managers to the issue are SBI Capital Markets Ltd and DAM Capital Advisors Ltd. The promoters of the company are GPT Sons holding 67.34% stake, Dwarika Prasad Tantia holding, Om Tantia and Shree Gopal Tantia. GPT Sons are estimated to offload aroud 38 lakh equity shares in the OFS and BanyanTree Growth Capital II and LLC will collectively offload 2.61 crore equity shares. 

Objective of the issue:
Rs.13.214 crore of the net proceeds is to be utilized for the purchase of medical equipment. 
 

About GPT Healthcare Ltd

About the company:
Founded in 2000 by Dwarika Prasad Tantia and Dr. Om Tantia, GPT Healthcare started with a hospital in Salt lake, Kolkata. Now, it operates three hospitals under the ILS Hospital brand in West Bengal and 1 in Tripura as well, with a bed capacity of 556 beds. The hospitals offers 35 specialty and super specialty healthcare services along with integrated diagnostic services. 
The first hospital founded in 2000, in Kolkata with a capacity of 8 beds has now grown to 85 beds, as of 31 September, 2021. The second hospital was set up in 2011 in Tripura, Agartala, has a capacity of 205 beds. The hospital in Dum Dum, founded in 2013 has a bed capacity of 150 beds and is also authorized to perform renal transplants. The hospital in Howrah, commissioned in 2019 with 116 beds.
 

Financials:

Particulars (In Rs Cr)

FY21

FY20

FY19

Revenue from operations

242.75

211.84

171.87

PAT

21.09

10.95

14.95

EPS

2.64

1.37

1.87

 

 

Particulars (In Rs Cr)

FY21

FY20

FY19

Total Assets

317.17

308.45

257.65

Total Borrowings

122.92

113.81

87.42

Equity Share Capital

57.94

57.94

57.94

 

Peer comparison:

Company

(FY20)

Operating Income

(In Rs Cr)

Operating margin

RoCE

Interest coverage

PAT

(In Rs Cr)

Apollo Hospitals Enterprise Ltd

11253

14.10%

17.00%

3.4

432

Fortis Healthcare Ltd

4560

12.20%

7.00%

3.6

91.5

Healthcare Global

1096

15.70%

1.00%

1.2

-125

Max Healthcare Group

4023.6

15.00%

-

1.4

-

Narayana Health Ltd

3131.4

14.20%

16.00%

5.1

119

Shalby Hospitals

483.6

17.20%

6.90%

13

25.3

Krishna Institute of Medical Sciences Ltd

1126.2

22.60%

22.50%

5.8

115.1

AMRI Hospitals

558.1

-6.20%

-6.30%

-0.2

-151.2

GPT Healthcare Ltd

211.8

17.00%

14.10%

2.9

11

Medica Hospitals

444.5

9.70%

22.90%

0.9

24.1

Neotia Healthcare Initiative Ltd

147.6

13.40%

9.30%

2.5

5.1

Peerless Hospitex Hospital and Research Center Ltd

217.4

11.30%

19.50%

11.5

15.1

Apollo Gleneagles Hospital Ltd

716.2

6.40%

8.30%

12.1

11.5


The Key points are- 

Key Points

  • Strengths

    1. They are very well positioned in markets which are under penetrated in terms of healthcare delivery, in prominent locations with dense populations
    2. GPT Healthcare has many healthcare delivery verticals and serve across various economic segments
    3. The hospitals are right-sized according to the needs of the region and sub-region
    4. They engage a large pool of talented doctors and nurses and are able to retain them for the long term
     

  • Risks

    1. The company is highly dependent on the revenues of the West Bengal hospitals and if the earnings from these hospitals are hampered, it will affect the entire business
    2. Certain lands on which the hospitals stand, are leased by the company for a long term, any impact on the ownership will materially affect the business operations
    3. Healthcare professionals engaged on a consulting basis are very important for the efficient functioning of the business
     

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

Open Demat Account