Global Health IPO opens today: All you need to know
Medanta operator Global Health IPO GMP today, November 03, 2022: The Rs 2,206 crore initial public offering (IPO) of Global Health, which operates hospitals under the Medanta brand, is available from November 3-7, 2022. It has a price band of Rs 319-336 per share.
Global Health (Medanta) IPO GMP Today: Dr. Naresh Trehan, Chairman & Managing Director of Medanta, addresses media during the announcement of the IPO of Global Health (Medanta), in Mumbai, Oct. 28, 2022. (PTI Photo) Global Health IPO GMP, Check Price Band, Review: The initial public offering (IPO) of Global Health, which operates hospitals under the Medanta brand, opened for subscription on Thursday, November 3, 2022. It opened for public subscription at 10 am and was subscribed around 9 per cent by 2:45 pm on the first day of bidding.
It received total bids for 43,59,960 shares across both the stock exchanges against 4,67,42,397 shares on offer, data from National Stock Exchange (NSE) showed.
The Rs 2,206 crore Global Health IPO will be available for subscription till Monday, November 7, 2022, and the price band has been fixed at Rs 319-336 per share.
The IPO comprises of a fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale (OFS) of up to 50,761,000 equity shares. Anant Investments (an affiliate of Carlyle Group) and Sunil Sachdeva (jointly with Suman Sachdeva) will be offloading shares through the OFS.
The net proceeds from the fresh issue will be used for repayment/prepayment of borrowings of its subsidiaries – GHPPL and MHPL and for general corporate purposes, according to the information given in the red herring prospectus (RHP).
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 35 per cent for retail investors.
Founded in August 2004 by renowned cardiovascular and cardiothoracic surgeon Dr Naresh Trehan, Global Health is the largest private multi-speciality tertiary care providers in the North and East regions of India in terms of bed capacity.
Global Health is backed by private equity investment firms such as Carlyle Group and Temasek. The company operates a network of five hospitals under ‘Medanta’ brand name in Gurugram, Indore, Ranchi, Lucknow and Patna. Additionally, one hospital is under construction in Noida.
“Upon operation of our Noida hospital in Fiscal 2025, we expect the number of total installed beds to exceed 3,500 at the end of Fiscal 2025 (FY25), which will cater to domestic and international patients as part of our strategy to capitalize on medical tourism,” the company informed in its RHP.
Investors who wish to subscribe to Medanta IPO can bid in a lot of 44 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,784 to get a single lot of Global Health. The shares will be listed on both BSE and NSE.
The applicants also must note that the cut-off time for UPI mandate acceptance is Monday, November 7, 2022, upto 5:00 pm, the last day of IPO bidding. Further bids with confirmed status of mandate amount blocked (RC100) shall be considered as valid applications and hence, investors are advised to submit their UPI applications in IPO well in advance to avoid any last minute technical/systemic constraints that may hamper their ability to participate in IPOs by successfully accepting the mandate.
Credit Suisse Securities (India), Jefferies India, JM Financial and Kotak Mahindra Capital are the book-running lead managers to the offer while KFin Technologies is the registrar of the issue.
Before heading into the IPO, Global Health on Wednesday raised nearly Rs 662 crore (Rs 6,61,67,08,224) from 52 anchor investors in lieu of 1,96,92,584 equity shares at Rs 336 each, data from the stock exchanges showed.
The anchor investors include Government of Singapore, Nomura, Axis Mutual Fund (MF), HDFC MF, Aditya Birla Sun Life MF, SBI MF, ICICI Prudential MF, Kotak MF, Max Life Insurance Company and SBI Life Insurance Company among others.
Ravi Singh, vice president and head of research at Share India Securities told indianexpress.com, “Over the past few years, Medanta has continuously upgraded its infrastructure with high end medical equipments and managed to deliver decent financial performance. However, the macroeconomic environment is challenging, GHL’s focus towards clinical research, experienced doctors team and presence in large states made its IPO a good choice to SUBSCRIBE.”
The research teams at Reliance Securities and Geojit Financial Services in their respective IPO notes have given a “Subscribe” rating to the offer.
Reliance Securities in its IPO note said “Based on FY22 earnings, the company is valued at 46x P/E, 21.9x EV/EBITDA and 4.5x EV/Sales. Despite the challenging macroeconomic environment, the company has leveraged its large-scale hospitals with world-class infrastructure, high-end medical equipment, and technology to record decent operational and financial performance. In view of GHL’s strong clinical expertise, focus on clinical research and academics, focus on under-served areas with dense population, presence in top capital cities of large states, decent brand equity, experienced management team and valuation comfort, we recommend a ‘SUBSCRIBE’ to the issue.”
Geojit Research’s report noted, “At the upper price band of Rs 336, Medanta is available at a P/E of 46x (FY22 EPS), which is in-line compared to its peers. Considering its strong brand value, new hospital addition, rise in ARPOB, pick up in medical tourism, increasing affordability for healthcare services and promising industry outlook, we assign a “Subscribe” rating on a short to medium term basis.”
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