The three-day initial public offering (IPO) of Global Health Limited, which operates and manages hospitals under the Medanta brand, will open for public subscription tomorrow i.e. 3 November, 2022, along with Bikaji Foods which will also launch its issue on Thursday. Global Health has set a price band of ₹319-336 a share for the IPO and the initial share sale will conclude on Monday, 7 November, 2022.
Global Health IPO consists of a fresh issue of equity shares aggregating to ₹500 crore and an offer for sale (OFS) of up to 5.08 crore equity shares by the company's shareholders and the promoters. The firm intends to utilize funds from the proceeds to repay loans by its arm Global Health Patliputra Pvt. Ltd and Medanta Holdings Pvt. Ltd by investing via debt or equity infusion.
As part of the OFS, Anant Investments, an affiliate of private equity major Carlyle Group, and Sunil Sachdeva (jointly with Suman Sachdeva) will offload equity shares. At present, Anant Investments holds 25.64% stake in Global Health and Sachdeva owns 13.41% stake in the company. At the upper end of the price band, the company is expected to fetch ₹2,206 crore through the IPO.
“Global health had a better performance in FY22 than it had in the preceding years. The average occupancy level of beds was 60.50%, while the EBITDA margins were close to 22% in FY22. At the upper price band of the issue, the market cap is almost four times the company's FY22 revenue, whereas the asking p/e is close to 46x (post-fresh issue). The issue appears to be priced in line with its listed counterparts. We might observe a divide in investors' participation as a result of the conflicting IPOs," said Abhay Doshi, co-founder of UnlistedArena.
Founded by Dr Naresh Trehan, a renowned cardiovascular and cardiothoracic surgeon, Global Health is a leading private multi-speciality tertiary care provider in the north and east regions of India. The company registered a total income of ₹2,205.8 crore and a profit of ₹196 crore in FY22.
