The initial public offering (IPO) consists of a fresh issue of equity shares aggregating to Rs 17.5 crore, and an offer for sale of up to 29.89 million equity shares, according to the draft red herring prospectus (DRHP).
As a part of the OFS, BanyanTree Growth Capital II, LLC, a Mauritius-based structured private equity, will sell up to 26.08 million equity shares and GPT Sons Pvt Ltd, promoter will offload up to 3.80 million equity shares. The private equity will be fully exiting its shareholding via the IPO.
At present, GPT Sons Private Limited holds 67.34 percent stake in GPT Healthcare and BanyanTree Growth Capital II, LLC owns a 32.64 percent stake in the company.
Proceeds from the fresh issue will be used to purchase medical equipment amounting to Rs 13.2 crs over the next 2 years besides general corporate purposes.
GPT Healthcare, founded by Dwarika Prasad Tantia and Dr Om Tantia started as an 8 bed hospital at Salt Lake, Kolkata in 2000. Today it operates a network of 3 hospitals under the ILS Hospital brand in West Bengal and 1 in Tripura with a total capacity of 556 beds and attends to over 35 specialties and super specialties such as internal medicine, diabetology, gastroenterology, orthopaedics and joint replacements, interventional cardiology, neurology, neurosurgery, paediatrics and neonatology.
Dr. Om Tantia, has over 4 decades of experience as a surgeon and is a specialist in the field of laparoscopic surgery. He has been the president of the Association of Minimal Access Surgeons of India along with multiple accolades to his credit, including the honorary professorship bestowed by the Indian Medical Association.
Its total income increased 15.17% from Rs 216.08 crore in fiscal year 2020 to Rs 248.86 crore in fiscal year 2021, primarily due to the increases in income from hospital services, majorly from private patients; income from pharmacy sales, as well as non-operating income and the net profit stood at Rs 21.09 crore for fiscal 2021 versus Rs 10.96 crore a year ago.
In FY 21 its EBITDA margin was at 22.14 percent compared with 18.53 percent in 2020. Additionally, its net operating profit margin was 8.69%, highest amongst key listed players such as Apollo Hospitals Enterprise Limited, Narayana Health Limited, Max Healthcare Institute Limited, Fortis Healthcare Limited and Shalby Limited, according to a CRISIL report.
It intends to grow the urology, neurology, interventional cardiology and oncology specialties and expand its network of hospitals into markets in eastern India and adjacent regions via greenfield and brownfield projects where quality healthcare is still under penetrated.
Owing to its focus towards developing an asset light model, It has recently signed and MOU and long term lease agreement for a hospital with 140 beds in Ranchi at an estimated investment of Rs 500 mn. Its Ranchi Hospital is expected commence operations in 2025.Other locations it is considering to expand are Lucknow, Varanasi, Patna, Guwahati, Cuttack and Raipur
The healthcare delivery market in India is expected to grow at a CAGR of 15% - 17% between fiscal Years 2021 and 2025 driven by pent up demand coming back onto the system, strong fundamentals, increasing affordability and Ayushman Bharat Yojana, to reach Rs 7.67 trillion in fiscal Year 2025. The share of treatments (in value terms) by private players is expected to increase from 58% in Fiscal Year 2021 to nearly 73% in Fiscal Year 2025.
Dam Capital Advisors Limited, and SBI Capital Market Limited are the book running lead managers to the IPO.