Sat. Jul 13th, 2024
GPT Healthcare's Journey Towards a Second IPO AttemptGPT Healthcare's Journey Towards a Second IPO Attempt

GPT Healthcare, based out of Kolkata, has recently made headlines by refiling its draft red herring prospectus for an IPO with the capital markets regulator, Sebi. This move comes two years after the firm’s initial filing. A significant shift in this new filing reveals BanyanTree Growth Capital II LLC’s intention to exit its stakes. Let’s delve deeper into the history, statistics, and implications of this corporate maneuver.

GPT Healthcare Financial Snapshot

MetricFY21-FY23June FY23June FY24
Revenue (Rs crore)Rs 82.5 croreRs 96.2 crore
Profit (Rs crore)Rs 7.67 croreRs 9.98 crore
EBITDA Margin>21%

Background: GPT’s Initial Tryst with IPO

Back in October 2021, GPT Healthcare first initiated its journey into the public market. It submitted its IPO papers and, by January 2022, had secured the approval of Sebi. That initial proposal was substantial, amounting to a whopping Rs 500 crore. Yet, the firm remained on the sidelines for two years without capitalizing on the approval.

The New Filing: A Closer Look

The recent IPO filing introduces a dual-structure approach:

  1. A fresh issuance of shares valued at Rs 40 crore.
  2. An offer-for-sale involving 2.6 crore equity shares that BanyanTree Growth Capital II LLC currently holds.

BanyanTree Growth Capital’s exit from its equity position appears to be the core driver behind this re-submission.

Shareholding Pattern: Who Holds What?

As it stands, the dominant stakeholder in GPT Healthcare is the promoter entity – GPT Sons, holding a significant 67.34% of the company. The remaining portion of the equity pie is held by BanyanTree Growth Capital. This current distribution underscores BanyanTree’s weight in the firm and the significance of its intended exit.

GPT Healthcare: Company Overview

GPT Healthcare boasts a robust presence in the healthcare sector, particularly in Eastern India. The company manages a chain of four mid-sized, full-service multispecialty hospitals under the brand ‘ILS Hospitals’. Combined, these facilities offer a total bed capacity of 561.

GPT Healthcare Financial Health Check

GPT Healthcare’s financials paint a promising picture. From FY21 to FY23, the firm witnessed a consistent revenue growth, registering a CAGR of 22%. This brought their operational revenue to Rs 361 crore. Moreover, their profit surged at an impressive CAGR of 36% during this period, culminating in a Rs 39 crore profit by the end of FY23.

One metric, however, that has shown some fluctuations is the EBITDA margin. Despite its volatility, GPT Healthcare has commendably managed to keep it above the 21% mark.

The numbers for the three months ending June FY24 are equally optimistic. With a profit of Rs 9.98 crore on a revenue of Rs 96.2 crore, it indicates a growth from the previous year, which saw a profit of Rs 7.67 crore against a revenue of Rs 82.5 crore.

Key Players in the IPO

GPT Healthcare has entrusted its IPO journey to notable entities in the market. JM Financial is playing the pivotal role of the sole merchant banker, while the responsibilities of registration are in the capable hands of Link Intime India.

The healthcare industry is an evergreen sector, with consistent demand and potential for growth. GPT Healthcare’s decision to refile its IPO, coupled with its encouraging financial trajectory, makes it a significant player to watch in the stock market arena. With BanyanTree Growth Capital’s intended exit, the corporate dynamics are set to undergo a transformation. How this reshuffling impacts GPT Healthcare’s position in the market and its future undertakings remains to be seen.

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