GPT Healthcare files draft IPO papers with Sebi; may raise up to Rs 500 cr

GPT Healthcare, which runs the chain of ILS Hospitals, has filed preliminary papers with capital markets regulator Sebi to raise Rs 450-500 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 of 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 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 its shareholding via the IPO.

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.

According to market sources, the initial public offering is expected to fetch between Rs 450 crore and Rs 500 crore.

Proceeds from the fresh issuance of shares will be used to purchase medical equipment and general corporate purposes.

Kolkata-based Healthcare operates a chain of mid-sized hospitals in eastern India under the 'ILS Hospitals' brand and provide integrated healthcare services, with a focus on secondary and tertiary care. As of September 30, 2021, it operates four multi-specialty hospitals, with a total capacity of 556 beds.

It recently signed an MoU and a long-term lease agreement for a hospital with 140 beds in Ranchi with an investment of Rs 50 crore. Its Ranchi hospital is expected to commence operations in 2025. Other locations it is considering to expand are Lucknow, Varanasi, Patna, Guwahati, Cuttack and Raipur.

GPT Healthcare's multispeciality hospitals are specialized in advanced surgical procedures, gynaecology and maternity services, paediatrics, orthopaedics, neuro and cardiac sciences, psychiatry and others.

DAM Capital and SBI Capital Markets are the lead managers to the issue.