GPT Healthcare IPO: Check subscription on Day 2, GMP and other details

The initial public offer (IPO) of GPT Healthcare was booked 61% so far on the second day of the bidding process. The category reserved for retail investors was fully subscribed, followed by NIIs at 45%.

The proceeds from the fresh issue will be used for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company besides general corporate purposes.

GPT Healthcare IPO GMP

In the unlisted market, the company's shares are trading with a marginal premium of Rs 5.

GPT Healthcare IPO review

Analysts advised investors to subscribe to the issue over fair valuations, comprehensive range of services and quality medical practices.

"On the valuation front, we believe that the company is fairly priced. Thus, we recommend an Subscribe – Long Term rating to the IPO," said Anand Rathi.

GPT Healthcare IPO price band

Kolkata-based GPT Healthcare has fixed a price band of Rs 177-186 per share for its Rs 525 crore IPO. Investors can make bids for 80 shares in one lot and in multiples thereafter.

Other details

GPT Healthcare operates four full service multispecialty hospitals, with a total capacity of 561 beds and attends to over 35 specialties and super specialties such as internal medicine, diabetology, gastroenterology, orthopaedics and joint replacements, interventional cardiology, neurology, neurosurgery, paediatrics and neonatology.

The company competes with listed industry peers such as Global Health, Krishna Institute of Medical Sciences, Jupiter LifeLine Hospitals, Yatharth Hospital among others.

Going ahead, the company intends to strengthen its existing hospitals by further balancing specialty mix, deepening its expertise in selective specialties and adding new specialties and services

Its total income increased 7% year-on-year to Rs 367 crore in fiscal 2023, primarily due to a rise in income from hospital services. Net profit for the same period, however, fell to Rs 39 crore versus Rs 42 crore a year ago.

Revenue from operations (ex-Covid) grew at a CAGR of 53.87% over FY21-23 and the ROCE stood at 26.09% for FY23.

JM Financial is the sole book running lead manager and Link Intime India is the registrar of the offer.

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