The issue, which kicked off for subscription on Thursday, closes on Monday. The company will be selling its shares in the range of Rs 319-336 apiece.
According to the data from BSE, investors made bids for 1,20,05,796equity shares compared to the 4,67,42,397 equity shares on offer.
The quota for retail bidders was subscribed just 0.12 times, whereas the portion for non-institutional investors was subscribed 0.18 times.
The quota for retail bidders was subscribed by merely 4%, whereas the portion for non-institutional investors was subscribed by 2%. The allocation for institutional investors was not even off the mark.
The IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale (OFS) of up to 5.08 crore equity shares from its promoters and existing shareholders.
The net proceeds from the fresh issue will be utilized towards repayment or prepayment of borrowings, in full or part, of the subsidiaries, GHPPL and MHPL and general corporate purposes.
Global Health is one of the largest private multi-specialty tertiary care providers operating in the North and East regions of India. It has a network of four hospitals in Gurugram, Indore, Ranchi, Patna and Lucknow.
As of June 30, 2022, the company provided healthcare services in over 30 medical specialties and engaged over 1,300 doctors led by experienced department heads. The operational hospitals have 2,467 installed beds.
The majority of the brokerages remain positive on the issue and suggest subscribing to it, citing its decent valuations, growth prospects and robust business model. However, higher expenses are a major risk for the company.
The company is bringing the issue at EV/EBITDA multiple of 18x & EV/Sales multiple of 4x. Growth opportunities in existing facilities and diversification into new services, including digital health with experienced senior management team & institutional shareholder support is a decent issue, said Hem Securities.
“Companies having large-scale hospitals with sophisticated infrastructure, medical equipment and technology have a track record of operational and financial performance with a focus on under-served areas with dense populations,” it added with a subscribe rating.
For the year 2021-22, the company reported a profit after tax (PAT) of Rs 196.2 crore with a revenue of Rs 2,205.82 crore. Its PAT stood at Rs 58.71 crore with total revenue at Rs 626.54 crore for the period ended June 30, 2022.
Considering its strong brand value, new hospital addition, pick up in medical tourism, increasing affordability for healthcare services and promising industry outlook, Geojit has assigned a ‘subscribe’ rating on the short to medium term.
Anand Rathi Research, who has a subscribe rating, said that the company has good operating metrics and a financial profile with topline and increasing margin over the years. “When compared to the listed peers, the issue is fairly priced,” it said.
The company has reserved 50% of the shares for qualified institutional buyers, whereas non-institutional investors will get 15% of shares. The remaining 35% shares have been allocated to the retail bidders.
Global Health mobilized Rs 662 crore from anchor investors ahead of its IPO as it allocated 1.97 crore equity shares at Rs 336 apiece, according to a circular uploaded on BSE website.
Capital Company, Credit Suisse Securities (India), Jefferies India and are the book-running lead managers to the IPO, whereas KFin Technologies is the registrar to the issue.