GPT Healthcare files for IPO may raise Rs 450-500 crore

Kolkata: GPT Healthcare Limited which operates and manages mid-sized hospitals under the ILS Hospitals brand, has filed preliminary papers with capital market regulator Sebi to raise between Rs 450 and 500 crore through an initial public offer.
The initial public offering (IPO) consists of 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, the private equity fund BanyanTree Growth Capital II, LLC, based in Mauritius holding 32.64 per cent will sell up to 26.08 million equity shares while promoters will offload up to 3.80 million equity shares.
The private equity fund proposes to fully exit its shareholding through the IPO, officials said.
At present, GPT Sons Private Limited holds 67.34 per cent stake in GPT Healthcare and BanyanTree Growth Capital II, LLC owns 32.64 per cent stake in the company.
Proceeds from the fresh issue will be used to purchase medical equipment amounting to Rs 13.2 crore over the next two years besides general corporate purposes.
GPT Healthcare, founded by Dwarika Prasad Tantia and Dr Om Tantia started as an eight bed hospital at Salt Lake, Kolkata in 2000. Today it operates a network of three hospitals under the ILS Hospital brand in West Bengal and one in Tripura with a total capacity of 556 beds.
Owing to its focus towards developing an asset light model, It has recently signed an MoU and long term lease agreement for a hospital with 140 beds in Ranchi at an estimated investment of Rs 50 crore and is expected to commence operations in 2025.
Total income increased 15 per cent from Rs 216 crore in fiscal year 2020 to Rs 248 crore in FY21 with improved EBITA margin to 22 per cent, primarily due to the increases in income from hospital services.
DamW Capital Advisors Limited and SBI Capital Market Limited are the book running lead managers to the IPO.

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