GPT Healthcare Limited, a chain of multi-speciality hospitals in East India running under the brand name of ILS Hospitals, has filed preliminary papers with Sebi to raise funds between 450-500 cr through an IPO.
The initial public offering (IPO) would amount to Rs 17.5 crore worth fresh issue of equity shares and an offer for sale (OFS) would aggregate to a maximum 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, would dilute its stake worth 26.08 million equity shares and GPT Sons Pvt Ltd, the promoter will dispose of up to 3.80 million equity shares. The private equity will offload its shareholding via the IPO.
Currently, GPT Sons Private Limited owns a 67.34 percent stake in GPT Healthcare and BanyanTree Growth Capital II, LLC holds a 32.64 percent stake in the company.
Funds collected from the fresh issue would help the company in purchasing medical equipment amounting to Rs 13.2 cr over the next 2 years apart from general corporate purposes.
In 2000 Dwarika Prasad Tantia and Dr Om Tantia founded GPT Healthcare by opening an 8-bed hospital at Salt Lake, Kolkata. Today it has a network of 3 hospitals under the ILS Hospital brand in West Bengal and 1 based in Tripura with a total capacity of 556 beds and has over 35 specialities and super specialities such as internal medicine, diabetology, gastroenterology, orthopaedics and joint replacements, interventional cardiology, neurology, neurosurgery, paediatrics and neonatology available.
Dr. Om Tantia has over 40 years of experience as a surgeon and he specialises in the field of laparoscopic surgery. He has been the president of the Association of Minimal Access Surgeons of India, also he received an honorary professorship from the Indian Medical Association.
In FY20, total income rose 15.17% from Rs 216.08 crore to Rs 248.86 crore in FY21, driven by an increase in income from hospital services, majorly from private patients; income from pharmacy sales, non-operating income and the net profit came in at Rs 21.09 crore for fiscal 2021 against Rs 10.96 crore prior-year period.
In FY 21 its EBITDA margin stood at 22.14 percent corresponding to 18.53 percent in 2020. Also, its net operating profit margin stood at 8.69%, the highest amongst key listed competitors 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 plans to expand its network of hospitals and grow its urology, neurology, interventional cardiology, and oncology specialities, as well as expand its urology, neurology, interventional cardiology, and oncology specialities, into markets in eastern India and adjacent regions through greenfield and brownfield projects where quality healthcare is still underserved.
The healthcare firm recently signed an MOU and long term lease agreement for a hospital with 140 beds in Ranchi for about Rs 500 mn. Its Ranchi Hospital will start its operations in 2025. The firm is eyeing to expand in Lucknow, Varanasi, Patna, Guwahati, Cuttack and Raipur
Dam Capital Advisors Limited and SBI Capital Market Limited would facilitate the IPO.