GPT Healthcare LTD IPO - Review, Valuation, Date & GMP

GPT Healthcare Limited IPO  - Complete Overview

Established in 1989, GPT Healthcare employs 1,855 staff, including full-time and visiting consultants. Their hospitals are equipped with advanced facilities and provide integrated healthcare services, including diagnostics and pharmacies

GPT Healthcare is a leading healthcare company in Eastern India, owning several hospitals with a total of 561 beds as of Fiscal Year 2023, according to a CRISIL Report. They operate under the ILS Hospitals brand, focusing on secondary and tertiary care services. Their hospitals offer a wide range of medical specialties, including internal medicine, surgery, gynaecology, paediatrics, orthopaedics, neurology and more.

Strategically located in Kolkata, Howrah, and other cities, their hospitals aim to provide accessible healthcare to patients. The company's capital cost per bed is relatively lower compared to industry averages, making their services more affordable.

 

GPT Healthcare Limited IPO Overview

GPT Healthcare IPO date is slated to be open for subscription from February 20, 2024, to February 26, 2024. This BSE NSE IPO follows a Book Built Issue IPO.

GPT Healthcare IPO price is fixed at Rs. 177 - Rs. 186 per share. 

The fresh issue size of this IPO amounts to Rs. 40.00 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

 

 

GPT Healthcare Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	22 February 2024
IPO Closing Date	26 February 2024
IPO Allotment Date	27 February 2024
Refund initiation	28 February 2024
IPO Listing Date	29 February 2024

 

GPT Healthcare Limited IPO Details

IPO Opening & Closing Date	22 February to 26 February 2024
Face Value	Rs. 10 per share
Issue Price	Rs. 177 - Rs. 186  per share
Lot Size	80  Shares
Price of 1 lot	Rs. 14,880
Total Issue Size	28,233,323 shares (aggregating up to Rs. 525.14 Cr)
Offer for sale	26,082,786 shares of Rs.10 (aggregating up to Rs. 485.14 Cr)
Fresh issue	2,150,537 shares (aggregating up to Rs. 40.00 Cr)
Listing at	BSE NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

GPT Healthcare Limited IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	80	Rs.14,880
Maximum Lot Investment (Retail)	13 lot	1040	Rs.1,93,440
Minimum Lot Investment (HNI)	14 lot	1,120	Rs.2,08,320
Minimum Lot Investment (HNI)	67 lot	5,360	Rs.9,96,960

 

GPT Healthcare Limited IPO Reservation

QIB Shares Offered	Maximum 50%
Retail Shares Offered	Minimum 35%
Other Shares Offered	Minimum 15%

 

Company Financial

GPT Healthcare Limited experienced an increase in total assets, total revenue, and net worth from FY 22 to FY 23.

(Amount in Crore)

Period	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	332.09	326.76	323.22
Total Revenue	206.70	366.73	342.40
PAT	23.49	39.01	41.66
Net worth	171.43	164.14	156.96
Reserve & Surplus	92.75	85.46	78.28
Total Borrowings	55.57	64.67	95.52

Revenue by Operations:

GPT Healthcare Limited saw an increase in revenue from operations in FY 23 compared to FY 22.

(Amount in Crore)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	2,04.17	3,61.03	3,37.41
Other Operating Income	2.52	5.69	4.98
Total Revenue	2,06.69	3,66.73	3,42.40

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Repayment or prepayment of certain outstanding borrowings from banks and financial institutions.

• General corporate purposes.

 

Promoters and Management of GPT Healthcare Limited IPO 

1. Shree Gopal Tantia.

2. Dr. Om Tantia.

3. Dwarika Prasad Tantia.

4. GPT Sons Private Limited.

Pre-issue Promoter Shareholding	67.34%
Post-issue Promoter Shareholding

 

GPT Healthcare Limited IPO Lead Managers

• Jm Financial Limited

 

 

Peers of GPT Healthcare Limited IPO

GPT Healthcare Limited's RPS and P/E ratio is lower compared to peers.

Name of the Company	Face Value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
GPT Healthcare Limited	10	38.11	4.88
Global Health Limited	2	90.29	12.58
Krishna Institute Of Medical Sciences Limited	10	49.51	42.03
Jupiter LifeLine Hospitals Ltd	10	81.73	13.95
Yatharth Hospital & Trauma Care Services Limited	10	37.66	10.09
Kovai Medical Center & Hospital Ltd.	10	29.93	105.80
Shalby Ltd	10	49.01	6.31

 

Evaluation

The IPO is priced within the range of Rs.117 - Rs.186 per share.

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 4.88 from the last year, the resulting P/E ratio is 38.11x.

- Taking into account the weighted EPS of Rs 4.62 for the last three years, the P/E ratio amounts to 40.25x.

Comparative Analysis with Listed Peers:

- Global Health Limited has a P/E ratio of 90.29x (the highest).

- Kovai Medical Center & Hospital Ltd. has a P/E ratio of 29.93 (the lowest).

- The industry's average P/E is 56.36x.

As a result, the IPO price range, with a P/E ratio ranging from 38.11x  to 40.25x, seems undervalued in comparison to the industry average of 56.36x.

 

Dividend Policy

The company's dividend policy, initiated in September 2023, gives the Board choices in dividend declarations, following company rules and laws. Dividend decisions hinge on factors like future plans, profits, and taxes, and could be influenced by loan agreements. Recent dividends totaled ₹79.90 million from October 1, 2023, onwards, with yearly dividends ranging from ₹98.67 million to ₹319.62 million and per-share dividends varying from ₹1.00 to ₹7.00. Future dividend payments depend on factors such as profits, past trends, capital needs, legal restrictions, and Board evaluations.

 

IPO's Strengths

• Positioned in underserved healthcare markets.

• Offers services across different economic segments.

• Right-sized hospitals for regional needs.

• Retains talented doctors and nurses.

 

IPO's Weaknesses

• Heavy reliance on West Bengal hospital revenues.

• Ownership issues with leased lands may disrupt operations.

• Reliance on consulting healthcare professionals.

 

 

IPO GMP Today

The Latest GMP of GPT Healthcare Limited IPO is Rs.17.

 

Conclusion

GPT Healthcare Limited's upcoming IPO presents an opportunity for investors to participate in a leading healthcare company with a strong presence in Eastern India. With strategically located hospitals offering a wide range of medical specialties and focusing on accessibility and affordability, GPT Healthcare is well-positioned to capitalize on underserved healthcare markets.

The IPO, scheduled to open from February 22 to February 26, 2024, offers shares priced within the range of Rs. 117 to Rs. 186 per share. 

Despite facing challenges such as heavy reliance on West Bengal hospital revenues and ownership issues with leased lands, GPT Healthcare's strengths, including its diverse service offerings and talented workforce, provide a solid foundation for future growth.

However, investors should conduct thorough due diligence and consider potential risks before making investment decisions. Overall, GPT Healthcare Limited's IPO presents a promising opportunity for investors seeking exposure to the healthcare sector, with the potential for long-term value creation.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

 

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.