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 Investor0.88x
- Non-Institutional Investor4.02x
- Qualified Institutional Buyers28.64x
- 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
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Global Health Ltd. click here.
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