Global Health Ltd. IPO

Global Health Ltd.

IPO Listing Details

Listed On

BSE & NSE

Listed On

Issue Price

₹336

Issue Price

Listing Price

₹398

Listing Price

Listing Gains

+₹62.15 (+18.50%)

Listing Gains

IPO Details

Bidding Dates

03 Nov - 07 Nov '22

Bidding Dates

Min. Investment

₹14,036

Min. Investment

Lot Size

44.00

Lot Size

Price Range

₹319 - ₹336

Price Range

Issue Size

1,491 Cr

Issue Size

Subscription Rate

  • Retail Individual Investor
    0.88x
  • Non-Institutional Investor
    4.02x
  • Qualified Institutional Buyers
    28.64x
  • Employees


About Company

Global Health Ltd., the operator of the Medanta chain of hospitals, will float its initial public offering (IPO) worth over Rs 2,200 crore on November 3. Founded by Dr. Naresh Trehan, Global Health (Medanta) is one of the largest private multi-speciality tertiary care providers operating in the North and East regions of India, with key specialities of cardiology and cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopaedics, liver transplant, and kidney and urology. Global Health has a network of 5 hospitals currently in operation (Gurugram, Indore, Ranchi, Lucknow and Patna), and 1 hospital (Noida), which is under construction. As of June 30, 2022, the company provides healthcare services in over 30 medical specialties and engages over 1,300 doctors led by highly experienced department heads, spanning an area of 4.7 msf, their operational hospitals have 2,467 installed beds. Global Health’s hospital at Gurugram was ranked as the best private hospital in India for 3 consecutive years in 2020, 2021 and 2022, and was the only Indian private hospital to be featured in the list of Top-200 global hospitals in 2021 and was featured in the list of Top-250 global hospitals in 2022 by Newsweek. The Rs 2,205.57-crore worth Global Health IPO opens on November 3 and closes on November 7. The price band for the issue has been fixed at Rs 319 to 336 per share. The IPO comprises a fresh issue of shares aggregating up to Rs 500 crore and an offer for sale (OFS) of 50,761,000 equity shares by existing shareholders Anant Investments and Sunil Sachdeva. The objectives for the fresh issue include an investment of Rs 375 crore in two subsidiaries, GHPPL and MHPL, in the form of debt or equity for repayment/prepayment of borrowings and the remaining amount will be used for general corporate purposes.

Important Dates - Global Health IPO

Application opens on 3rd November 2022
Last date of application 7th November 2022
Date of Allotment 11th Novemberber 2022
Refund begins from 14th Novembber 2022
Credit of shares to Demat 15th November 2022
Listing date 16th November 2022

Why should you invest in Global Health Ltd. IPO?

Global Health operates under the most popular healthcare brand “Medanta. The company’s operations posted decent growth over the years. Based on its financial data, the issue also seems attractively priced.

 

Financial Snapshot -Global Health IPO

Global Health’s operational & financial performance has been strong and weathered the challenges of the COVID-19 pandemic. Check out its financial performance over the recent years.

Financial Year Total Assets Total Revenues Net Profit
March 2020 Rs 2,666.29 crore Rs 1,544.27 crore Rs 36.33 crore
March 2021 Rs 2,694.1 crore Rs 1,478.16 crore Rs 28.81 crore
March 2022 Rs 3,145.52 crore Rs 2,205.82 crore Rs 196.20 crore

 

Global Health Ltd IPO Noteworthy Highlights

Here are some of the key details and information about Global Health IPO before investing:

- Global Health’s IPO lot size is 44 shares, and a retail-individual investor can apply for up to 13 lots. This makes their total investment of 572 shares or Rs 192,192.

- The book-running lead managers (BRLM) to the issue are Kotak Mahindra Capital, Credit Suisse, Jefferies India, JM Financial.

- 50% of the net issue are reserved for qualified institutional buyers, while 15% and 35% of the net issue is reserved for non-institutional bidders and retail investors, respectively.

- The company’s promoter currently holds a 35.03% stake, and after the IPO, this will come down to 33.08%. The public shareholding will increase to 66.92% from the current 64.97%.

- One of the selling investors, i.e. Anant Investments (an affiliate of Carlyle Group), held a 25.66% stake in the company. On October 20, 2022, it entered into a share purchase agreement to offload 1.434 cr shares (representing 5.66% of the pre-IPO equity share capital) at Rs 336 per share to RJ Corp Ltd. (one of the existing investors in Global Health with 3.95% stake); and to two new investors, i.e. SBI Mutual Fund and Novo Holdings A/S. 

- Pursuant to the agreement, Anant Investments’s pre-IPO stake in Global Health will come down to 20%, while RJ Corp Ltd.’s stake will increase to 5.83%. SBI Mutual Fund and Novo Holdings A/S each will have a 1.89% stake in the company.


Global Health Ltd. IPO - SWOT Analysis

Strengths

Global Health has a track record of strong financial performance. It is a leading tertiary and quaternary care provider in India and is well recognized for clinical expertise, in particular in dealing with complicated cases. The company focuses on clinical research and academics and has large-scale hospitals with sophisticated infrastructure and high-end medical equipment and technology.

Weaknesses

The company’s performance is highly dependent on doctors, nurses and other healthcare professionals. In case the company is unable to attract/retain such professionals, its business will be impacted significantly. Its subsidiaries, MHPL and GHPPL have incurred losses in recent years. Moreover, it operates in an industry with high expenses such as manpower, infrastructure and medical equipment maintenance and repair costs, ancillary items and pharmaceuticals.

Opportunities

Global Health focuses on under-served areas with dense populations and has a presence in the top or capital cities of large states. It has growth opportunities in existing facilities and diversification into new services, including digital health. The company intends to enhance clinical capabilities, improve operating efficiencies and extend clinical services outside the hospital and across the lifetime of the patient.

Threats

Global Health’s business can be adversely impacted due to any possible stringent restrictions to slow down the spread of Covid-19. As per the offer documents. there are certain outstanding legal proceedings involving the company, its Directors, Subsidiaries, and Promoter, which are pending at different levels of adjudication before various courts, tribunals and other authorities. Any adverse outcome may adversely affect business and reputation.

 

Global Health IPO Grey Market Premium

Date GMP
2nd November Rs.25
1st November Rs.15



How to apply for Global Health Ltd. IPO?

You can apply for the Global Health Ltd. IPO in these ways:

UPI
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Global Health Ltd. IPO FAQs

What are the opening and closing dates for Global Health IPO?

Global Health IPO opens for subscription on November 3 and closes on November 7.

What is the price band for Global Health IPO?

Global Health IPO price band has been fixed at Rs 319 to 336 per share.

What is the amount of money the company plans to raise via IPO?

Global Health plans to raise Rs 2,119.3 to 2,205.57 crore from the public offer, as per the price band.

What is the portion of the fresh issue and OFS in the IPO?

The IPO comprises a fresh issue of shares aggregating up to Rs 500 crore and an offer for sale (OFS) of 50,761,000 equity shares by existing shareholders Anant Investments and Sunil Sachdeva.

What will be the post-issue promoter and public shareholding of Global Health?

The promoter and promoter group shareholding in Global Health after the IPO will reduce to 33.08% from 35.03%. The public shareholding in the company will increase to 66.92% from 64.97%.

Who is the registrar of the issue?

KFin Technologies Ltd. is the registrar for Global Health IPO.

Who are Global Health IPO Lead Managers?

Kotak Mahindra Capital Company Ltd., Credit Suisse Securities (India) Pvt. Ltd., Jefferies India Pvt. Ltd. and JM Financial Ltd. are the BRLMs for the issue.

What is Global Health IPO Minimum and Maximum Lot Size?

The lot size for Global Health IPO is 44 shares and in multiple thereof. Thus, the application money for one lot will be Rs 14,784. A retail-individual investor can opt for up to 13 lots.

When will Global Health IPO allotment take place?

The finalisation of the basis of allotment for Global Health IPO will be done on November 11, 2022, and the allotted shares will be credited to investors’ demat accounts by November 15, 2022.

When and where will the Global Health shares be listed?

Global Health shares are proposed to be listed on November 16, 2022, on BSE and NSE.

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