Introduction
There have been many IPOs in the Indian stock market in the year 2022. The latest to join the IPO game is a company from the healthcare industry. Global Health Limited are private hospitals that are run and managed under the brand ‘Medanta’,
The IPO was open for subscription from 3rd November 2022 to 7th November 2022. The Global Health IPO was subscribed 9.58 times on the final day of issue. As per market observers, the grey market premium (GMP) of Global Health IPO was Rs. 14 on Nov 8th. Investors can expect allotment of shares to be finalized on November 11th, 2022.
The details of this IPO and its review are mentioned hereunder.
Read More: Top 5 stocks in healthcare sector
IPO Details
The various details of the Global Health Limited IPO are as under.
- IPO Size
The size of the IPO and different categories of the issue are,
| Category | Details |
| IPO Opening Date | 3rd November 2022 |
| IPO Closing Date | 7th November 2022 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Rs.2 per share |
| IPO Price Band | Rs.319 – Rs.336 per share |
| IPO Size | Rs. 2,205 crores |
| Fresh Issue size | Rs. 500 crores |
| Offer For Sale | Rs. 1,705 crores |
- IPO Dates
The Global Health IPO will open in the first week of November 2022 for a brief period and the process will be completed by mid-November. The important dates of the IPO and listing are tabled below.
| Event | Date |
| Price Band Allotment | 28th October 2022 |
| Anchor Investors Allotment | 2nd November 2022 |
| Opening date | 3rd November 2022 |
| Closing Date | 7th November 2022 |
| Allotment date | 11th November 2022 |
| Refund Date | 14th November 2022 |
| Share Credit Date | 15th November 2022 |
| Listing Date | 16th November 2022 |
- IPO Lot Sizes
The details of the lot sizes for the Global Health IPO are mentioned below.
| Category | Details |
| Minimum investment | 1 lot |
| Shares in each lot | 44 shares |
| Minimum amount of investment per lot | Rs. 14,784 |
| Maximum permissible investment in Lots | 13 lots |
| Maximum shares for investment | 572 shares |
| Maximum amount of investment permissible | Rs. 1,92,192 |
- IPO Reservation
The eligible investor categories and their share in the IPO reservation are tabled below.
| Category of Investor | Reservation of the IPO applicable |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
| RII (Retail Individual Investors) | 35% |
Global Health IPO Objectives
The objectives of the Global Health Limited IPO mention the utilization of the proceeds from the IPO. The details of the same are mentioned below.
- The proceeds will be used for the repayment or prepayment of borrowings, in part or in full, of the subsidiaries GHPPL (Global Health Patliputra Pvt. Ltd) and MHPL (Medanta Holdings Pvt. Ltd).
- The other purposes include meeting expenses for general corporate purposes.
About Global Health IPO
Global Health Limited is among the largest private multispeciality tertiary care centers that are dominant in the North and East regions of the country. The key specialties of these hospitals include cardiology and cardiac science, neurosciences, orthopedics, liver transplant, digestive and hepatobiliary sciences, oncology, and kidney and urology.
This hospital was founded by Dr. Naresh Trehan who is a Padma Bhushan, Padma Shri, and a BC Roy Awardee. The company has more than 1300 doctors associated with the company that is engaged in providing healthcare services in India through hospitals having 2467 installed beds. This company was also ranked as the best private hospital in the country for three consecutive years in 2020, 2021, and 2022.
Financials of the company
The core financials of the company are tabled below.
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS | Diluted EPS | RONW |
| 2022 | 3145 | 2166 | 196 | 7.77 | 8.66 | 12.14% |
| 2021 | 2694 | 1446 | 28 | 1.14 | 2.27 | 2.08% |
| 2020 | 2666 | 1500 | 36 | 1.44 | 4.08 | 2.69% |
Strengths of the company
Some of the key strengths of the company are highlighted below.
- Global Health Limited is the leading name in providing tertiary and quaternary care to the citizens of the country. They also have clinical expertise that is well-recognized in handling critical cases.
- Global Health Limited has the benefit of having world-class hospitals with high-end infrastructure, medical equipment, and technology based on the latest innovations.
- The company has Doctor-led hospitals that are driven based on their skills and experience and have ranked the best in the business for multiple years.
- The hospitals of this company also focus on the under-served areas that have dense populations and also have a presence in major cities like NCR, Lucknow, and Patna.
- The company has proved to have a good track record of operational and financial performance making it a good bet for investors.
Risks of investment
After reviewing the strengths of the company, let us now turn to its weaknesses or risks of investment. The details of the same are mentioned below.
- The cost of providing healthcare services is quite high in Idnianand is further enhanced in the backdrop of covid 19.
- The company’s subsidiaries have incurred losses in the past which can be a potential red flag for investors.
- The revenue of the company is concentrated in the North and East belt of the country and any significant change in the geographic or economic conditions at these paces will affect the company directly.
- The company is also subject to the inherent risks of belonging to the healthcare sector and any legal risks.
- It is also to be noted that certain land parcels where the hospital buildings and clinics are functional are not leased to the company for perpetuity as well as is not owned by them. This makes them vulnerable and may lead to huge losses.
What is the Grey Market Premium (GMP) on Global Health IPO?
As of November 8, 2022, the grey market premium for the shares of Global Health is Rs. 14 as per market observers. This is Re. 1 down from the previous day’s GMP of Rs. 15.
Should you apply for Global Health IPO?
Global Health Limited is a big name in the healthcare industry and this name is also backed by strong financials and good growth projections. The doctor-driven hospitals also ensure that the management understands the needs of the hospital and its patients more efficiently. Also, the pricing of the issue is quite attractive making it a good addition to the investment portfolio with mid-term and long-term investment horizons. Hence, on the whole, this IPO will be a good investment option for investors.
How to apply for Global Health IPO?
Investors can invest in this IPO through the Fisdom app.
FAQs
A. The total issue size of the Global Health Limited IPO is Rs. 2,205 crores.
A. No. Global Health Limited IPO will be in the nature of Fresh Issue and OFfer for sale to the tune of Rs. 500 crores and Rs. 1705 crores respectively.
A. The date of allotment for Global Health Limited IPO is 11th November 2022.
A. The shareholding pattern of the company post-IPO will be 70% of public subscriptions and 30% of Promoter and Promoter’s Group.
A. The lead managers of the IPO are, Kotak Mahindra Capital Co. Ltd., Credit Suisse Securities Pvt Ltd., Jefferies India Pvt Ltd., and JM Financial Ltd among others.
