GPT Healthcare, which runs the chain of ILS Hospitals, has received capital markets regulator Sebi’s go-ahead to raise up to Rs 500 crore through an initial share sale.
The Initial Public Offering (IPO) comprises fresh issuance of equity shares worth Rs 17.5 crore and an Offer For Sale (OFS) of up to 2.98 crore equity shares by a promoter entity and an investor, according to 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 company 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 on Monday. In Sebi parlance, issuance of observations letter implies its go ahead for the IPO. According to market sources, the IPO is expected to fetch between Rs 450 crore to Rs 500 crore.
Proceeds from the fresh issuance of shares will be used to purchase medical equipment and for general corporate purposes. At present, 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 September 30, 2021, it operated four multi-specialty hospitals with a total capacity of 556 beds. Recently, the company signed a MoU and long term lease agreement for a hospital with 140 beds in Ranchi with an investment of Rs 50 crore. The Ranchi hospital is expected commence operations in 2025. DAM Capital and SBI Capital Markets are the lead managers to the issue.