Dwarika Prasad Tantia established GPT Healthcare Limited along with Dr Om Tantia. They started their journey with a small eight-bed facility in Kolkata at Salt Lake in Early 2000. Today the Company functions in three multi-Specialty hospitals under brand ILS Hospital in West Bengal and Tripura. The hospital has a limit of 556 beds each. In this article, we will discuss about GPT Healthcare Limited IPO allotment status, price, listing date and all details that you need to know.
The Company works on an Asset-light Model. Recently the Company signed an MoU with a long-term lease agreement for a 140 beds Specialty Hospital in Ranchi. The Company will carry out the agreement at an expected price of Rs.50 crore. The hospital is believed to commence its operation in 2025. The firm is also looking to grow its operation in Guwahati, Varanasi, Lucknow, Patna, Cuttack and Raipur. The Company’s objective is to provide integrated healthcare services providing a tertiary and secondary Medical Care service.
The promoters of the Company are GPT Sons and Tantia members. Currently, GPT Sons hold a 67.34% stake which is equivalent to 5.38 crore equity shares of the Company. The rest of 32.64% equity in the Company is backed by a Mauritius based PE firm- BanyanTree Growth Capital. Their hospitals provide integrated diagnostic and pharmacy services at their hospitals. The Company has a strong reach in Eastern India and is well renowned for providing efficient, high quality, low-cost medical services to patients. The Company currently has 1,767 members with 75 full-time Medical Consultants and 314 Special Visiting Consultants.
OBJECTS OF THE IPO ISSUE:
- Prepayment of all the loans of the Company, which be availed on a consolidated basis.
- To meet corporate targets.
- To fund the working capital requirement.
BASIS OF THE GPT HEALTHCARE LIMITED IPO OFFER:
- The Company’s hospital is located in under-served medical care, high-traffic regions, and high population density areas.
- The Company has a good track record of operational, growth and financial parameters.
- The Medium-sized hospitals yield a better Return on the Capital Employed along with a better Return on Equity.
- The Multi-Specialty hospital branch can train and hold qualified individuals in the medical sector.
- The Company has a strong management and promoter base.
- The Company believes that its cost-efficient and excellent medical facility will advantage its patients and visitors.
GPT HEALTHCARE IPO DETAILS:
GPT Healthcare Limited is a multi-speciality hospital chain operating the ILS Hospitals with its headquarters in Mumbai. The Company recently submitted its DRHP to SEBI to seek approval to float its IPO in the market. Accordingly, the Company will not carry out any pre-IPO placement offer.
The Company, through IPO, will raise a fund of 450- 500 Crores. The IPO consists of fresh equity worth Rs.17.5 crores and an OFS brought forward by the promoters of 3,804,700 equity shares. Mauritius-based PE firm- BanyanTree Growth Capital will make a complete exit from the Company. The PE fund will offload their 2.61 Crore Equity shares through the OFS. Through the funds been raised by the issue of fresh equity, Rs 13.2 crore will be used to buy the new technological and medical equipment’s. The rest of the fresh equity raised money will be utilized for working capital and general corporate purposes. Check Day by Day IPO Subscription Details (Live Status)
|IPO Opening Date|
|IPO Closing Date|
|Issue Type||Book Building Type|
|Face Value||Rs.10/ Equity share|
|Min Order Quantity|
|Listing At||BSE, NSE|
|Fresh Issue||Rs.17.5 Crores|
|Offer for Sale||3,804,700 +2.61 Crores Equity shares|
|Basis of Allotment Date|
|Initiation of Refunds|
|The Credit of Shares to Demat Account|
|IPO Listing Date|
|Basis of the Allotment Type||% Of the IPO Offer|
|Qualified Institutional Buyer||50|
WEAKNESS AND THREATS:
- The effect of the COVID-19 has been beneficial for the Company, but in the long run, the financial parameters have been impacted by the pandemic.
- The major source of income of the Company is from West Bengal. The Company needs to carry out their expansion plan with a proper strategy to reduce its dependency on West Bengal.
- Some of the hospitals and Registered Office of the Company are rented to them on a non-perpetual and long-term basis.
- The obligations, just as the terms and conditions upheld by their financing arrangements, may restrict the ability of the Company to extend their business and adversely affect their growth plan.
- The Company is engaged in healthcare services. As a result, they are dependent upon legal cases and administrative measures.
- The medical and other equipment’s that the Company requires are supplied to them by third party manufacturers and merchants.
- No bank or financial institution has carried out an appraisal of their IPO offer.
- The Company is always under vulnerability to Cyber Threats for exposure of their medical data.
- The Company, along with its directors and promoters, are under trial for legal procedure. Any negative news from there can have a detrimental impact on the Company.
- The Company is engaged in business that is highly capital intensive in nature. It also has a high vulnerability concerning the treatment and operating risks.
- In the recent quarter, the Company recorded a deterioration in its overall occupancy levels. It was below 50%.
- The Company is engaged in a high maintenance CAPEX business. The hospital requirements are generally very high and include a regular change in technology, non-reusable products and many more.
- The whole healthcare sector is competitive and fragmented. It has large organized players and small unorganized players leading to stiff competition in the sector.
- The Company recently carried out a long-term CAPEX plan to restrict their old hospitals and establish their new ones. As a result of this, the Debt-to-equity ratio of the Company remained on a bit higher side.
STRENGTHS AND GROWTH ASPECTS:
- The Company will benefit from the growing need for low-cost, reputed, high-quality healthcare service providers in Eastern India.
- GPT Healthcare Limited has received many awards for excellent medical service and efficient, high-quality treatment services. Some of the awards are as follows:
- NABH accreditation hospital standards award.
- NABL ISO 15189:2012 standards certification.
- The Company marks an advantage of itself being an initial mover, strategic location advantage, high brand awareness in the society, Established market share in Eastern India, Low cost but high-quality Medical Care and Services.
- The Company has a long-term association with doctors, medical equipment providers, other medical experts and Test Laboratories. It helps them to be a patient favoured multi-Specialty hospital branch.
- The Company plans to expand and develop its urology, interventional cardiology, nervous science department and oncology department with the addition of specialized doctors and new medical equipment required for the treatment.
- In FY20, the Company registered an increase of 15.17% in the total income. The income or revenue of the Company increased to Rs 248.86 crore from Rs 216.08 crore. The increase was due to an increase in income from their hospital, increment of income from pharmacy and increase in non-operating income.
- The EBITDA margin in FY 21 was 22.14%, which registered an increase from last year margins.
- The Company also registered an increase in its net operating profit margin. The margin was at 8.69% and was the highest margin among the listed companies.
- The Company registered improved liquidity and a sound capital structure that was marked due to the recovery of loans and advances.
- The Company also recorded an improvement in ARPOB, Average Revenue Per Occupied Bed.
- The Company can increase the PBILDT and operating margin to 20% on a sustained basis.
- The Company also registered an improvement in the overall gearing ratio. The ratio was below 0.5 times only.
- The Company recorded a significant improvement in the financial performance in recent years.
- The Company has also prepaid some high-interest loans before the IPO offer. Currently, the Company has an ample amount of surplus and a good amount of holding in terms of Mutual Funds and other deposits.
- The Company’s PAT margin also improved in the last year and current financial year’s first quarter. The improvement was in terms of improvement in interest coverage margins.
- The Company has a healthy and stable net cash flow.
FINANCIAL TRENDS OF GPT HEALTHCARE LIMITED IPO:
|PARAMETERS||RATIO AS IN FY21|
|Net worth||15.02 %|
|Return on Equity||12.96 %|
|Total Assets||11.26 %|
|Fixed Assets||8.93 %|
|Current Assets||36.35 %|
|Current Liabilities||-15.60 %|
|Trade Receivables||-9.68 %|
|Trade Payables||-1.87 %|
|PARAMETER||YoY % change in FY21|
|Net sales revenue||23.26% ▲|
|Total operating revenue||23.67% ▲|
|Operating profit (EBIT)||-5.51% ▼|
|Net Profit (Loss) for the Period||-27.08%▼|
|Total assets||20.81% ▲|
|Total equity||14.38% ▲|
|Operating Profit Margin (ROS)||-4.16% ▼|
|Net Profit Margin||-3.57% ▼|
|Return on Equity (ROE)||-7.17% ▼|
|Debt to Equity Ratio||7.77% ▲|
|Quick Ratio||0.01% ▲|
|Cash Ratio||-0.02% ▼|
|Particulars||For the year ended ( in Cr.)|
|Profit After Tax||16.11||21.09||10.96||14.95|
GPT HEALTHCARE LIMITED IPO PROMOTERS:
The promoters of the company are:
- GPT Sons Private Limited
- Dwarika Prasad Tantia
- Dr. Om Tantia
- Shree Gopal Tantia.
|Pre-Issue Share Holding||99.97%|
|Post Issue Share Holding|
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