GPT Healthcare IPO: The preliminary public providing of GPT Healthcare Ltd has been opened on Thursday, February 22. The value band of the IPO has been mounted at Rs 177-186 per share. Till 3:37 pm on the primary day of bidding on Thursday, the Rs 525.14-crore IPO obtained 0.32 instances subscription, garnering bids for 63,28,560 shares as in opposition to 1,97,63,327 shares on supply.

The IPO will likely be closed on Monday, February 26, 2024.

The retail class has obtained 0.59 instances subscription and the non-institutional quota acquired 0.13 instances subscription.

The allotment of the GPT Healthcare IPO will happen on February 27, whereas its itemizing will happen on each NSE and BSE on February 29, 2024.

GPT Healthcare, which operates and manages mid-sized multi-specialty hospitals underneath the ILS Hospitals model, on Wednesday collected Rs 157.54 crore from anchor buyers a day earlier than the IPO.

GPT Healthcare IPO GMP Today

According to market observers, unlisted shares of GPT Healthcare Ltd are buying and selling Rs 16 greater within the gray market as in contrast with its challenge value. The Rs 16 gray market premium or GMP means the gray market is anticipating a 8.6 per cent itemizing achieve from the general public challenge. The GMP is predicated on market sentiments and retains altering.

‘Grey market premium’ signifies buyers’ readiness to pay greater than the problem value.

GPT Healthcare IPO: Should You Subscribe?

Assigning the ‘subscribe long-term’ ranking, brokerage Anand Rathi in a notice mentioned, “At the higher value band, the corporate is valuing at P/E of 39.1 instances with a market cap of Rs 1,526.2 crore submit challenge of fairness shares and return on internet value of 23.7 per cent in FY23. On the valuation entrance, we imagine that the corporate is pretty priced. Thus, we advocate an ‘subscribe for long term’ ranking to the IPO.”

Another brokerage StoxBox, however, has given the ‘Avoid’ rating to the IPO. It said the company is yet to expand its operations successfully to other parts of India. The bed occupancy rates need to improve to reflect better financial performance. “We recommend an ‘avoid’ rating for the issue. However, we would reassess the company on improvement in financial metrics over a sustained period.”

Giving a ‘subscribe’ ranking, Mehta Equities in its notice mentioned, “Investors also needs to take a look at IPO supply, which include a 100 per cent OFS challenge, which is an space of concern for brand new buyers. Hence, contemplating all parameters we advocate solely excessive threat buyers can ‘subscribe’ to the IPO for the long run whereas conservative buyers can wait and watch the inventory submit itemizing.”

GPT Healthcare IPO Details

The IPO is a combination of a fresh issue of equity shares aggregating to Rs 40 crore and an Offer For Sale (OFS) of up to 2.6 crore equity shares by private equity firm BanyanTree Growth Capital II.

BanyanTree, which holds 2.6 crore shares or 32.64 per cent stake in Kolkata-based GPT Healthcare, is divesting its entire shareholding in the company.

Proceeds from the fresh issue to the tune of Rs 30 crore will be used for payment of debt and general corporate purposes.

The IPO will mobilise Rs 501.67 crore at the lower end of the price band and Rs 525.14 crore at the upper end.

GPT Healthcare, founded by Dwarika Prasad Tantia, Dr Om Tantia and Shree Gopal Tantia, started with an eight-bed hospital in Kolkata in 2000. Today it operates four full service multi-specialty hospitals, with a total capacity of 561 beds.

The company competes with listed industry peers, including Global Health Ltd, Krishna Institute of Medical Sciences Ltd, Jupiter Life Line Hospitals Ltd, Yatharth Hospital & Trauma Care Services Ltd and Shalby Ltd.

Half of the issue has been reserved for qualified institutional buyers, 35 per cent for non-institutional investors and the remaining 15 per cent for retail investors. Investors can bid for a minimum of 80 equity shares and in multiples of 80 equity shares thereafter.

Its total income increased 7.3 per cent to Rs 361.03 crore in FY23 from Rs 337.41 crore in FY22.

JM Financial is the sole book-running lead manager to the issue. The equity shares are proposed to be listed on the BSE and the NSE.

(The story has been updated with the latest subscription and GMP data till 3:37 pm)