GPT Healthcare IPO: Introduction

GPT Healthcare, operating under the brand name ILS Hospitals, is a prominent healthcare provider in Eastern India. As the company gears up for its IPO launch on February 22nd, 2024, Investors are eager to learn about its growth potential, financials, and company model. This blog delves into the details, highlighting the strengths and challenges GPT Healthcare faces.

The GPT Healthcare IPO recently opened for subscription on February 22nd, 2024, and is set to close on February 26th. Here’s a summary of the key details:

GPT Healthcare IPO: Issue Details:

• Company:
  GPT Healthcare Limited

• Issue Type:
  Main Board IPO

• Issue Size:
  ₹525.14 Crore

• Price Band:
  ₹177 – ₹186 per share

• Minimum Order Quantity:
  80 Shares

• Issue Open Date:
  February 22nd, 2024

• Issue Close Date:
  February 26th, 2024

• Listing Date:
  Tentatively February 29th, 2024

• Listing Exchanges:
  BSE & NSE

GPT Healthcare IPO: Business Overview

1. Healthcare Services:
   GPT Healthcare offers an extensive range of healthcare services across thirty-five super speciality divisions. Their integrated approach focuses on secondary and tertiary care, meeting the area’s medical requirements.

2. Hospital Chain:
   The company operates a chain of mid-sized, multi-speciality hospitals under the ILS Hospitals brand. With a total of 561 beds, these hospitals are strategically located across Eastern India:

• • Salt Lake Facility (Kolkata):
    Eighty-five beds, including 17 in various ICUs and HDUs.

  • Dum Dum Facility:
    Beds, with 53 in ICUs and HDUs.

  • Howrah Facility (West Bengal):
    There are one hundred sixteen beds, including 43 in ICUs and HDUs.

  • Agartala Facility (Tripura):
    205 beds, with 66 in ICUs and HDUs.

GPT Healthcare IPO: Strengths

Untapped Market:
GPT Healthcare operates in areas with a shortage of healthcare services, especially in densely populated regions. This positions them well for growth.

Financial Performance:
Over the last three years, GPT Healthcare’s finances have shown a positive trend:

• • 2021:
    Profit of ₹21.09 crores.

  • 2022:
    Doubled profit to ₹41.66 crores.

  • 2023:
    Profit slightly dropped to ₹39.01 crores.
    Efficiently Sized Hospitals:
    Their mid-sized hospitals, strategically located, yield substantial returns on investment.

Challenges

1. Regional Dependency:
   GPT Healthcare relies heavily on revenue from West Bengal hospitals.

2. Network Reliance:
   The company’s profits are closely tied to its connections with doctors and other healthcare workers.

3. Bed Occupancy Rate:
   GPT Healthcare faces competition from other listed players, and its bed occupancy rate is lower than some peers.

GPT Healthcare IPO: Financial Metrics

• Return on Equity (ROE):
  • FY21:
    15.75%

  • FY22:
    26.34%

  • FY23:
    23.59% (Higher ROE indicates improved profitability.)

• Earnings per Share (EPS):
  • GPT Healthcare:
    4.88 (lowest among competitors)

  • Kovai Medical Center & Hospital:
    105.8 (highest EPS)

GPT Healthcare IPO: Promoters and Ownership

• Promoters:
  • Shree Gopal Tania
  • Dr Om Tantia
  • Dwarika Prasad Tantia
  • GPT Sons Private Limited

• Current Promoter Ownership:
  67.34% (to decrease to 65.58% after the IPO)
  

GPT Healthcare IPO:Performance:

The IPO has received a lukewarm response from investors, with subscription rates reaching only 0.18 times the total offering as of February 22nd. The public issue subscribed 0.34 times in the retail category, 0.00 times in QIB, and 0.05 times in the NII category.

Do you think you should invest?

Whether or not to invest in the GPT Healthcare IPO is a decision you should make according to your financial circumstances and investing objectives. It’s essential to consider the company’s financials, prospects, and overall market conditions before making investment decisions.

READ MORE: ALKEM Share Price Outlook for 2024: Bullish or Bearish?

Conclusion

GPT Healthcare’s IPO presents an opportunity for investors to participate in the growth story of Eastern India’s healthcare sector. While challenges exist, the company’s strategic positioning and financial performance make it an intriguing prospect. Investors should carefully evaluate their investment decisions as the IPO subscription window opens from February 22nd to February 26th, 2024.

Remember, investing involves risks, and thorough due diligence is essential. Stay informed, and may your investment journey be healthy and prosperous!

Disclaimer: This blog is only intended for informational purposes and does not constitute financial advice. Always consult a professional advisor before making investment decisions.