Premium| Listen to this article |
GPT Healthcare Limited, which operates and manages mid-sized hospitals under the ILS Hospitals brand, has received capital markets regulator Sebi's go-ahead to raise up to ₹500 crore through an initial share sale.
The Initial Public Offering (IPO) includes fresh issuance of equity shares worth ₹17.5 crore and an Offer For Sale (OFS) of up to 2.98 crore equity shares by a promoter entity and an investor, as per the Draft Red Herring Prospectus (DRHP).
The OFS consists of sale of up to 38.05 lakh equity shares by GPT Sons and up to 2.61 crore equity shares by private equity firm BanyanTree Growth Capital II LLC. The private equity firm will be fully exiting the firm through the IPO.
GPT Healthcare, which filed the DRHP in August, obtained its observations on December 29, 2021, an update with the Securities and Exchange Board of India (Sebi) showed today.
In Sebi parlance, issuance of observations letter implies its go ahead for the IPO.
As per market sources, the IPO is expected to fetch between ₹450 crore to ₹500 crore.
Proceeds from the fresh issuance of shares will be used to purchase medical equipment and for general corporate purposes.
Currently, GPT Sons holds 67.34 per cent stake in GPT Healthcare and BanyanTree Growth Capital II, LLC owns 32.64 per cent stake in the company.
Kolkata-based GPT Healthcare operates a chain of mid-sized hospitals in eastern India under the 'ILS Hospitals' brand and provides integrated healthcare services, with a focus on secondary and tertiary care.
As of 30 September, 2021, it operated four multi-specialty hospitals with a total capacity of 556 beds.
A few days ago, the firm signed a MoU and long term lease agreement for a hospital with 140 beds in Ranchi with an investment of ₹50 crore. The Ranchi hospital is expected commence operations in 2025.
DAM Capital and SBI Capital Markets are the lead managers to the issue.
With agency inputs
Never miss a story! Stay connected and informed with Mint. Download our App Now!!