GPT Healthcare Fixes IPO Price Band In Range Of Rs 177-186 Apiece

GPT Healthcare Ltd. has fixed the price band for its upcoming initial public offering in the range of Rs 177–186 apiece, according to a statement on Monday.

The maiden share sale is a mix of a fresh issue worth Rs 40 crore and an offer-for-sale, wherein BanyanTree Growth Capital II LLC will offload its entire stake, according to the red herring prospectus for the offer. The selling investor holds over 2.60 crore shares, representing 32.64% of the pre-offer equity capital.

At the cap price, the healthcare service provider will raise Rs 525.14 crore through the IPO.

The price/earnings ratio based on diluted earnings per share for fiscal 2023 at the floor price is 36.27 times, and at the cap price is 38.11 times, compared to 56.36 for the average industry peer group.

Bids can be made for a minimum of 80 equity shares and then multiples thereof.

Of the net proceeds, Rs 30 crore will be used to repay or pre-pay, partially or in full, certain outstanding loans availed by the company. This repayment will be carried out in fiscal 2024 and fiscal 2025.

The offer will open for subscription on Feb. 22 and continue till Feb. 26. Anchor investors can place their bids on Feb. 21. The shares of the company will be listed on the National Stock Exchange and the BSE.

GPT Healthcare operates a chain of mid-sized, full-service hospitals under the ILS Hospitals brand that provides integrated healthcare services with a focus on secondary and tertiary care. The brand is present in Dum Dum, Salt Lake and Howrah in West Bengal, and Agartala in Tripura, with a total capacity of 561 beds. The multispecialty hospitals offer services across over 35 specialties and superspecialties.