IPO ALERT: GPT Healthcare IPO opens TODAY

We believe that the healthcare delivery market in India is expected to grow at a CAGR of 9%-11% between Fiscal Years 2024 and 2028 and reach INR 9.2-9.3 trillion in Fiscal Year 2028 driven by long-term structural factors, strong fundamentals, increasing affordability and potential of the Ayushman Bharat scheme. Given the geographical concentration of GPT Healthcare’s Hospitals in Eastern India, the company is well-placed to capitalize on the expected growth in the healthcare sector in Eastern India and adjoining states due to its early-mover advantage, strategically located hospitals, brand presence, deep understanding of the regional markets, and existing track record.

GPT Healthcare is one of the leading regional corporate healthcare companies in Eastern India, boasting a significant number of beds and hospitals. The company operates a chain of mid-sized full-service hospitals under the brand “ILS Hospitals,” delivering integrated healthcare services with a focus on secondary and tertiary care. As of June 30, 2023, GPT Healthcare operates four multispecialty hospitals, with a total capacity of 561 beds. GPT Healthcare’s hospitals offer a comprehensive range of healthcare services across over 35 specialities and super specialities, including internal medicine, diabetology, nephrology (including renal transplants), laparoscopic and general surgery, gynaecology and obstetrics, critical care, gastroenterology, orthopaedics and joint replacements, interventional cardiology, neurology, neurosurgery, paediatrics, and neonatology. Each of its hospitals also provides integrated diagnostic services and pharmacies catering to its patients.

GPT’s net sales grew 7% YoY in FY23 to INR 3610.37 million with its PAT reported at INR 390.08 million. The company last reported an ARPOB of INR 33464 in H1FY24 which grew 11.43% YoY. GPT has an average bed occupancy of 55.93% in H1FY24 which grew from 53.82% in H1FY23. The company is also looking to reduce debt by INR 300 million from the net proceeds which will further improve its debt-to-equity ratio which is currently 0.34 in H1FY24. The company reported ROE and ROCE of 24.11% and 26.93% in FY23.

Objects of the issue:
1. Repayment of borrowings
2. General Corporate Purposes