The initial share-sale of Global Health Limited, which operates and manages hospitals under the Medanta brand, will open for public subscription on November 3. The initial public offering (IPO) will conclude on November 7, according to the red herring prospectus (RHP). According to merchant banking sources, the IPO size could be about Rs 2,200 crore.
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. As a part of the OFS, Anant Investments, an affiliate of private equity major Carlyle Group and Sunil Sachdeva (jointly with Suman Sachdeva) will offload equity shares.
At present, Anant Investments holds 25.64 per cent stake in Global Health and Sachdeva owns 13.41 per cent stake in the company. Proceeds from the fresh issue will be used to pay debt and general corporate purposes. Founded by Naresh Trehan, a renowned cardiovascular and cardiothoracic surgeon, Global Health is a leading private multi-speciality tertiary care provider in the North and East regions of India.
Global Health, backed by private equity investors such as Carlyle Group and Temasek, operates a network of five hospitals under the ‘Medanta’ brand in Gurugram, Indore, Ranchi, Lucknow and Patna. In addition, one hospital is under construction in Noida. Upon operation of its Noida hospital in fiscal 2025, the company’s total installed beds are expected to exceed 3,500. As part of its growth strategies, the company also intends to capitalise on medical tourism.
The company reported a total income of Rs 2,205.8 crore and a profit of Rs 196.2 crore in FY22.The Indian healthcare delivery industry is estimated to post a 13-15 per cent CAGR between FY21 and FY26, driven by pent-up demand, strong fundamentals, increasing affordability and Ayushman Bharat Yojana, according to a Crisil report.
Moreover, the county’s bed density per 10,000 population is just 15 beds, which is below the global median of 29 beds. Kotak Mahindra Capital Company, Credit Suisse Securities (India), Jefferies India and JM Financial are the book running lead managers to the IPO.
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