GPT Healthcare Limited operates a chain of mid-sized, multi-specialty, full-service hospitals in Eastern India under the ILS Hospitals brand, providing integrated healthcare services focusing on secondary and tertiary care. The GPT Healthcare IPO is a mix of fresh issue of equity shares worth Rs 40 crore and OFS of up to 2.6 crore equity shares by investor private equity fund Banyan Tree.
| IPO opens | Feb 22, 2024 |
| IPO Closes | Feb 26, 2024 |
| IPO Size (Rs.) | ₹485.14 Cr |
| IPO Size (shares) | 28,233,323 shares |
| Breakup | Fresh issue 40 cr. + OFS ₹485.14 Cr |
| Face Value: | ₹ 10 |
| IPO Price in Rs : | 177-186 |
| Minimum Lot | 80 Shares |
| Listing At | NSE SME |
| QIB | 50% |
| NII Quota | ~15% |
| Retail Quota | ~35% |
| Lead Manager | Jm Financial Limited |
| Registrar | Link Intime |
About GPT Healthcare:
- GHL, was incorporated in 1989 as Jibansatya Printing House Pvt Ltd by Kolkata-based GPT group.
- Later it was renamed as GPT Healthcare Pvt Ltd, which was converted into a public ltd company on September 15, 2021.
- It owns and operates four mid-sized multispecialty hospitals with an aggregate capacity of 556 beds across Kolkata (West Bengal; three hospitals) and Agartala (Tripura; one hospital and nursing college) under the ILS Hospitals brand.
- The company has 1,902 employees, 91 full-time consultants, and 481 visiting consultants as of September 30, 2023.
- Mr D. P. Tantia, Chairman, Dr Om Tantia, MD and Mr Anurag Tantia, Executive Director mange the operations.
Currently it operates 4 hospitals totaling to 560+ beds across Eastern India with a vision to grow to 1000+ beds in the next 3 years.
Financials: GPT Healthcare IPO
| Particulars / Rs. Cr. | 2023(06) | 2022(06) | 2023(12) | 2022(12) | 2021(12) |
| Revenue from Operations | 204.18 | 171.97 | 361.04 | 337.42 | 242.75 |
| Revenue Growth (%) | 18.73% | – | 6.99% | 39.18% | – |
| EBITDA | 46.19 | 32.92 | 80.05 | 78.82 | 55.1 |
| EBITDA Margin (%) | 22.34% | 18.87% | 21.83% | 23.02% | 22.14% |
| Profit before Tax | 33.64 | 21.64 | 55.97 | 54.08 | 28.88 |
| Net Profit for the period | 23.49 | 16.99 | 39.01 | 41.66 | 21.09 |
| Net Profit Margin (%) | 11.36% | 9.73% | 10.64% | 12.17% | 8.48% |
| Equity Share Capital | 79.9 | 79.9 | 79.9 | 79.905 | 17.94 |
| Reserves | 92.75 | 79.28 | 85.46 | 78.28 | 75.96 |
| Net worth | 172.65 | 159.19 | 165.36 | 158.18 | 133.9 |
| EPS – Basic & Diluted (₹) | 2.94 | 2.13^ | 4.88 | 5.21 | 2.64 |
| RoNW (%) | 13.70% | 10.75%^ | 23.77 | 26.54 | 15.9 |
| Net Asset Value (₹) | 21.45 | 19.77 | 20.54 | 19.64 | 16.6 |
| Post issue Share Capital | 82.05 | ||||
| FV | 10.0 | ||||
| IPO price | 186.0 | ||||
| EPS Fy23 | 4.8 | ||||
| PE Fy23 | 39.1 | ||||
| EPS Fy24 (annualized) | 5.7 | ||||
| PE Fy24 (annualized) | 32.5 | ||||
| Market cap in cr | 1,526.1 |
GPT Healthcare IPO: Anchors
GPT Healthcare IPO anchor book included Societe Generale, Kotak Mutal Fund, Axis Mutual Fund, Bandhan Duro One Investments, Copthall Mauritius, Kotal Mutual Fund, Aditya Birla Life Insurance, LC Pharos Multi Strategy Fund, and DE Shaw Valence International.
GPT Healthcare IPO: Salient Points
- It established first hospital in Salt Lake, Kolkata (West Bengal) in the year 2000 with a capacity of 8 beds. This has grown to 85 beds, including 17 beds across various ICUs and HDUs as of September 30, 2023.
- Today GPT Healthcare Limited operates a chain of mid-sized, multi-specialty, full-service hospitals in Eastern India under the ILS Hospitals brand, providing integrated healthcare services focusing on secondary and tertiary care. GPT Healthcare hospitals are strategically located in densely populated cities of Kolkata (West Bengal) and Howrah (West Bengal).
- GPTHL provides healthcare services in various fields (Emergency and Critical Care, Gynae Endoscopic Surgery, Nephrology, Neuro and Spine Surgery, Neurology, Obstetrics and Gynaecology, Pediatrics etc).
- They generates more than 90% of the revenue from private patients
- Currently it operates 4 hospitals totaling to 560+ beds across Eastern India with a vision to grow to 1000+ beds in the next 3 years.
- It signed an MoU in January 2023 for a hospital with 152 beds in Raipur (Chhattisgarh), with an estimated capital outlay of Rs 55 crore. The hospital at Raipur will be on an asset-light basis. The company will incur capital expenditure only on plants and machinery, resulting in a capital-efficient model. The company expects to commence operations of the hospital in Raipur in 2025.
- Further company signed an MoU and a long-term lease agreement for a hospital with 140 beds in Ranchi (Jharkhand), costing Rs 50 crore. This hospital will also be on an asset-light basis, the company expects to commence its operations in 2026.
- In FY2023, the attrition rate for its doctors and nurses was only 11.83% and 22.45%, respectively.
- The offer-for-sale (OFS) of 2.6 crore equity shares is by investor private equity fund Banyan Tree who took stake in the company about 10 years back and is making a complete exit. The investor is making an IRR of 30% plus on his investment.
- Company intends to utilize the fresh issue portion of Net Proceeds to pay debt & intends to become a debt free company.
- Company’s revenue from operations grew at a CAGR of 53.87% over FY2021 to FY2023 and ROCE being 26.09% for FY2023.
- Peers:
| Company/ Rs. Cr. | Total Beds | Bed occupancy % | ARPOB Rs. | Revenues cr. | Net Profit cr. | NPM | RONW | PE | Mcap/Sales |
| GPT Healthcare | 561 | 59.9 | 33000 | 361 | 39 | 10.8% | 23.77% | 39(32.5) | 4.23 |
| KIMS | 3975 | 73.4 | 31400 | 2198 | 366 | 16.7% | 20.3 | 52.9 | 7.34 |
| Jupiter | 1194 | 63% | 53600 | 787 | 107 | 13.6% | 19.9 | 70.4 | 11.1 |
| Yatharth | 1405 | 54 | 28300 | 478 | 66 | 13.8% | 36.6 | 43.8 | 6.44 |
| Kovai Medical | 2097 | 55 | 17400 | 1,020 | 116 | 11.4% | 16.1 | 28.4 | 3.86 |
| Shalby | 2112 | 46 | _ | 804 | 67.7 | 8.4% | 7.33 | 39.1 | 3.58 |
- Its other listed group company is GPT Infra projects. GPT Infra projects Ltd (GPT) is a construction company engaged in executing civil and infrastructure projects. It also manufactures concrete sleepers for railways. It quotes at a PE of 22.
- GPT Healthcare IPO is coming at a PE ratio of 9.1x(fy23 earnings) and 32.5x (fy24 annualized earnings)
- I intend to apply in GPT Healthcare IPO subject to availability of funds. Not the best in class but it looks reasonable compared to peers & health sector has good growth potential in the country. Company future foray’s are in asset light mode and it will be becoming debt free.
- GMP as reported on social media has been Rs. 19 .
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.