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GPT Healthcare Ltd IPO
Status:
Overview
IPO date
22 Feb 2024 to 26 Feb 2024
Face value
₹ 10 per share
Price
₹ 177 to ₹186 per share
Issue Size
28,233,323 shares
(aggregating up to ₹ 525.14 Cr)
(aggregating up to ₹ 525.14 Cr)
Allotment Date
27 Feb 2024
Listing at
NSE
Issue type
Book Building
Sector
Objectives of GPT Healthcare Ltd IPO
Initial public offering of 28,233,323# equity shares of face value of
Rs. 10 each ("Equity Shares") of the company for cash at a price of Rs. 186 per equity share (including a share premium of Rs. 176 per equity share) ("Offer Price") aggregating to Rs. 525.14# crores (the "Offer") comprising a fresh issue of 2,150,537# equity shares of face value of Rs. 10 each aggregating to Rs. 40.00# crores by the company (the "Fresh Issue") and an offer for sale of 26,082,786# equity shares of face value of Rs. 10 each aggregating to Rs. 485.14# crores by Banyantree Growth Capital ii, LLC (the "Investor Selling Shareholder") (the "Offer for Sale"). The offer would constitute 34.41# % of the post-offer paid-up equity share capital of the company.
The face value of the equity shares is Rs. 10 each and the offer price is 18.6 times the face value of the equity shares.
#Subject to finalization of basis of allotment.
GPT Healthcare Ltd IPO Strategy
- Strengthen its existing hospitals and its offerings and add new capabilities and specialties
- Strategically grow its presence in adjacent markets
- Focus on flexible and asset-light expansion for quick break-even
- Implementation of initiatives to improve existing operational efficiencies
- Leverage technology to enhance patient and attendant experience through digitalisation, and to grow its operations
About GPT Healthcare Ltd
GPT Healthcare Limited was formerly established as 'Jibansatya Printing House Private Limited' on August 17, 1989 at Kolkata, West Bengal. The name of Company was changed to 'GPT Healthcare Private Limited' by the Registrar of Companies on March 31, 2005. Thereafter, Company converted to a Public Company and the name was changed to 'GPT Healthcare Limited'. Consequent upon change in name to a Limited Company, a fresh Certificate of Incorporation was issued by the RoC on September 15, 2021.
The Principal activities of the Company include operation of multidisciplinary private hospitals and pharmacies. The Company is having four Multispecialty hospitals. Two of them are in Kolkata, at Salt Lake and Dumdum, one in Agartala (Tripura), fourth hospital in Howrah, West Bengal and has one Nursing Institute in Agartala.
The Company is one of the leading regional corporate healthcare companies in Eastern India in terms of number of beds and hospitals. It operate a chain of mid-sized hospitals under the 'ILS Hospitals' brand and provide integrated healthcare services, focusing on secondary and tertiary care. It operate and manage a network of four multi-specialty hospitals, with a total capacity of 561 beds. It offer a comprehensive range of healthcare services across over 35 specialties and super specialties including internal medicine and diabetology, nephrology, laparoscopic and general surgery, gynaecology and obstetrics, critical care, gastroenterology, orthopaedics and joint replacements, interventional cardiology, neurology, neurosurgery, paediatrics and neonatology. Each of their hospitals provides integrated diagnostic services and pharmacies catering to patients. Apart from these, it also provide outpatient services, including consultation for a range of ailments and preventive health screenings.
Led by the Promoter, Dr. Om Tantia, the first hospital was started in Salt Lake, West Bengal in year 2000, with a capacity of eight beds, which has grown to 85 beds, including 17 beds across various ICUs and HDUs. However, in 2005 the Company purchased a small nursing home consisting of operating theatre, labour room and nursery, diagnostic services, dental clinic and diabetic clinic facilities from Tantia Medical Services Private Limited on a going concern basis for a consideration of Rs 33 million.
Later, the Company commissioned a second hospital in Agartala, Tripura in the year 2011 as a multi-specialty tertiary care centre with a capacity of 205 beds with a Nursing School. It established hospital in Dum Dum Kolkata in year, 2013 having a capacity of 150 beds and was authorized to perform renal transplant services.
In 2019, it commissioned a tertiary care hospital in Howrah with a capacity of 116 beds and in 2021, has started B.Sc degrees in Nursing training 50 students in every batch from September, 2021.
The Company signed a Memorandum of Understanding (MoU) for the construction and finishing of a hospital building at Raipur with a capacity of 152 beds in January, 2023.
The Company raised funds from public through IPO by issuing 28,233,323 Equity Shares of face value of Rs 10/- each aggregating to Rs 525.14 Crore, comprising a Fresh Issue of 2,150,537 Equity Shares aggregating to Rs 40 Crore and 26,082,786 Equity Shares aggregating to Rs 485.14 Crore through Offer for Sale in February, 2024.
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Strengths vs Risks of GPT Healthcare Ltd
Know the pros & cons
Strengths
Key regional corporate healthcare company with a strong foothold in under-penetrated and densely populated healthcare delivery markets- ight-sized', full service and strategically located hospitals leading to high return on capital
- Well diversified specialty mix and location mix
- Ability to attract, train and retain quality medical professionals
- Track record of operating and financial performance and growth
- Professional management and experienced leadership
- Investment in infrastructure, processes and clinical excellence driving affordability, and a strong value proposition for stakeholders
Risks
- The hospital derives approximately 70% of its revenue from operations from its hospitals situated in West Bengal as these serve a significant percentage of its patients. Further, all the hospitals are located in the eastern region of India. Any impact on the revenue from these hospitals or any change in the economic or political conditions of West Bengal could materially affect its business, financial condition, results of operations and cash flows.
- The name of Ishwari Prasad Tantia, one of the members of its Promoter Group was published in the list of Wilful Defaulters by certain financial institutions. Additionally, NSDL has frozen his demat account due to non-compliance with certain provisions of the Listing Regulations by Tantia Constructions Limited ("Tantia Constructions"), wherein he is a promoter. Any adverse order, direction, notice or penalty by any bank or the RBI, SEBI or any other regulatory authority in the future against any member of the Promoter Group or any entity with which any of its member of the Promoter Group is associated, could have an adverse effect on its reputation, consequently, affecting its business operations.
- The hospital face competition from other healthcare service providers. If its unable to compete effectively, its business, results of operations and cash flows may be materially and adversely affected.
- The Bed Occupancy Rate of the Company is lower than some of its listed peers. If its unable to maintain bed occupancy rates at sufficient levels, the hospital may not be able to generate adequate returns on its capital expenditure, which could materially and adversely affect its operating efficiencies and the hospital's profitability.
- The hospital is dependent on its healthcare professionals, including its doctors that the hospital engage on a consultancy basis. Loss of or its inability to attract or retain such persons could adversely affect its business, financial condition, results of operations and cash flows.
- The hospital is dependent on availability of nurses to provide quality healthcare services. A decline in the number of trained and available nurses may lead to a decline in its ability to provide required patient care and consequently adversely affect its operations and performance.
- If the hospital does not receive payments on time from its patients, its financial condition, cash flows and results of operations may be materially and adversely affected.
- The hospital, its Promoters and Directors are involved in certain legal proceedings, any adverse developments related to which could affect its operations. The hospital could suffer significant litigation expenses in defending these claims and could be subject to significant damage, compensation, or other remedies, which could adversely affect its reputation, business, results from operations, financial conditions and cash flows.
- Its business is highly dependent on the strength of the hospital brand and reputation. Failure to maintain and enhance its brand and reputation, and any negative publicity and allegations in the media against it, may materially and adversely affect the level of market recognition, and trust in, its services, which could result in a material adverse impact on its business, financial condition, results of operations and prospects.
- Its Promoter, Chairman and Whole-time Director, Dwarika Prasad Tantia, its Promoter Shree Gopal Tantia, and its Independent Director, Hari Modi are unable to trace their bachelor's degrees and the hospital has relied on affidavits furnished by them for such details of their profile.
- The hospital is significantly dependent on certain specialties. Any impact on its revenue from such specialties could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- The hospital may experience delays in construction or commencement of operations of its proposed hospitals or the hospital may not be successful in expanding its operations to other parts of India, in a timely manner or at all, which could have an adverse effect on its business, financial condition, results of operations and cash flows.
- If the hospital is unable to keep pace with technological changes, new equipment and service introductions, changes in patients' needs and evolving industry standards as well as failure or malfunction of its medical or other equipment, its business and financial condition may be adversely affected.
- Its industry is highly regulated and requires it to obtain, renew and maintain statutory and regulatory permits, accreditations, licenses and comply with applicable safety, health, environmental, labour and other governmental regulations. Any regulatory changes or violations of such rules and regulations may adversely affect its business, financial condition and results of operations.
- The Company has been involved in an instance of regulatory non-compliance in the past. Any such non-compliance in the future may have an impact on its business, financials and results of operations.
- The hospital is dependent on a number of Key Personnel, including its Promoters, Senior Management. Loss of or its inability to attract or retain such persons could adversely affect its business, financial condition, results of operations and cash flows.
- The hospital outsource some of its service functions to third-party contractors. Any lapse by such third-party service providers may have adverse consequences on its business and reputation.
- Its Promoters, GPT Sons Private Limited, Dwarika Prasad Tantia and Om Tantia, have provided corporate/personal guarantees in relation to certain loan facilities availed by it, which if revoked may require alternative guarantees, repayment of amounts due or termination of the facilities and may adversely impact its cash flow, business and result of operations.
- The hospital may fail to protect its intellectual property rights and may be exposed to misappropriation and infringement claims by third parties, either of which may have a material adverse effect on its business and reputation.
- Its indebtedness and the conditions and restrictions imposed by its financing arrangements may limit its ability to grow its business and adversely impact the hospital's business.
- Its funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised by any bank or financial institution or any other independent agency and may be subject to change based on various factors, some of which are beyond its control. Any variation in the utilization of the Net Proceeds or in the terms of the conditions as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders' approval, and its business, financial condition and results of operations may be adversely affected.
- Certain lands on which two of its hospital buildings are operating are not owned by it but are leased on a long term basis. Further, its Registered Office is located on land owned by GPT Estate Private Limited and held by it on a short-term lease basis. Any adverse impact on the title or ownership rights of the owner or breach of the terms or non-renewal of the lease agreement on commercially favourable terms or at all may lead to disruptions and may materially and adversely impact its business, financial condition, results of operations and cashflows.
- Its insurance coverage may not adequately cover all damages arising out of the claims against its hospitals. This may have an adverse effect on the hospital's financial condition, results of operations, reputation, cash flows and prospects.
- Lack of health insurance in India may adversely affect its business, cash flows, financial condition and results of operations.
- The hospital's has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
- Its Statutory Auditor has included emphasis of matter paragraphs in their reports on its Restated Financial Information and its Restated Consolidated Financial Information.
- The hospital has certain commitments and contingent liabilities that may adversely affect its financial condition.
- Its ability to pay dividends in the future will depend on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
- The hospital may requires additional funding to finance its operations, which may not be available on terms acceptable to it, or at all, and if the hospital is unable to raise funds, the value of your investment in it may be negatively impacted.
- The hospital relies on third party suppliers and manufacturers for its supplies and equipment. Failure of such third parties to meet their obligations could adversely affect its business, results of operations and cash flows.
- If the hospital fail to achieve favourable pricing on medical consumables, pharmacy items, drugs, and surgical instruments from its suppliers or are unable to pass on any cost increases to its payers, its profitability could be materially and adversely affected.
- If the hospital is unable to establish and maintain an effective internal control, its business and reputation could be adversely affected.
- The hospital and its Promoters are exposed to legal claims and regulatory actions arising from the provision of healthcare services and may be subject to liabilities arising from claims of unfair trade practices and medical negligence which could materially and adversely affect its reputation and prospects.
- The hospital is required to handle personal information, including medical data, as a result of which its could face breach or theft of confidential and other sensitive information of its patients or procedures or any kind of data leakage in the past, any breach of its confidentiality obligations to the hospital patients, including due to data leakages or improper use of such medical information. This could expose it to fines, potential liabilities and legal proceedings, such as litigation or regulatory proceedings, which would adversely impact its reputation.
- Its Promoters and certain members of its Promoter Group hold Equity Shares in the Company and therefore, are interested in its performance in addition to their remuneration and reimbursement of expenses. Pursuant to their shareholding they will continue to retain control over the Company after completion of the Offer, which will allow them to influence the outcome of matters submitted for approval of its shareholders. Such a concentration of ownership may also have the effect of delaying, preventing, or deterring a change in control.
- This Red Herring Prospectus contains industry information that has been extracted or derived from an industry report prepared by CRISIL Research, which was commissioned and paid for by the Company exclusively for the purpose of the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The Company will not receive the proceeds from the Offer for Sale. One of its Shareholder is selling shares in the Offer and will receive proceeds as part of the Offer for Sale.
- This Red Herring Prospectus contains certain non-GAAP measures related to its operations and financial performance that may vary from any standard methodology that is applicable across the industry.
- The hospital is vulnerable to failures of its information technology system, which could adversely affect its business.
- Its hospitals are susceptible to risks arising on account of fire and other incidents. Pursuant to the nature of the Company's business any slowdown or shutdown of any unit of its hospitals could interfere with its operations. This may materially and adversely affect its business, cash flows, financial condition, and results of operations.
- The hospital's may be subject to worker unrests and increased wage expenses which could materially and adversely affect its business, financial condition, results of operations and cash flows.
GPT Healthcare Ltd Peer Comparison
Understand the company’s industry standing
GPT Healthcare Ltd
Global Health Ltd
Krishna Institute of Medical Sciences Ltd
Face Value
10
2
10
Standalone / Consolidated
Standalone
Consolidated
Consolidated
Total Income Rs. Cr.
361.037
2694.248
2197.678
EPS-Basis
4.88
12.58
42.03
EPS-Diluted
4.88
12.57
42.03
NAV Per Share
20.54
89.65
206.47
P/E-Basic EPS
---
90.29
49.51
P/E-Diluted EPS
---
---
---
RONW(%)
23.77
13.56
20.35
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of GPT Healthcare Ltd IPO?
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Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 22 Feb 2024 & closes on 26 Feb 2024.
GPT Healthcare Limited was formerly established as 'Jibansatya Printing House Private Limited' on August 17, 1989 at Kolkata, West Bengal. The name of Company was changed to 'GPT Healthcare Private Limited' by the Registrar of Companies on March 31, 2005. Thereafter, Company converted to a Public Company and the name was changed to 'GPT Healthcare Limited'. Consequent upon change in name to a Limited Company, a fresh Certificate of Incorporation was issued by the RoC on September 15, 2021.
The Principal activities of the Company include operation of multidisciplinary private hospitals and pharmacies. The Company is having four Multispecialty hospitals. Two of them are in Kolkata, at Salt Lake and Dumdum, one in Agartala (Tripura), fourth hospital in Howrah, West Bengal and has one Nursing Institute in Agartala.
The Company is one of the leading regional corporate healthcare companies in Eastern India in terms of number of beds and hospitals. It operate a chain of mid-sized hospitals under the 'ILS Hospitals' brand and provide integrated healthcare services, focusing on secondary and tertiary care. It operate and manage a network of four multi-specialty hospitals, with a total capacity of 561 beds. It offer a comprehensive range of healthcare services across over 35 specialties and super specialties including internal medicine and diabetology, nephrology, laparoscopic and general surgery, gynaecology and obstetrics, critical care, gastroenterology, orthopaedics and joint replacements, interventional cardiology, neurology, neurosurgery, paediatrics and neonatology. Each of their hospitals provides integrated diagnostic services and pharmacies catering to patients. Apart from these, it also provide outpatient services, including consultation for a range of ailments and preventive health screenings.
Led by the Promoter, Dr. Om Tantia, the first hospital was started in Salt Lake, West Bengal in year 2000, with a capacity of eight beds, which has grown to 85 beds, including 17 beds across various ICUs and HDUs. However, in 2005 the Company purchased a small nursing home consisting of operating theatre, labour room and nursery, diagnostic services, dental clinic and diabetic clinic facilities from Tantia Medical Services Private Limited on a going concern basis for a consideration of Rs 33 million.
Later, the Company commissioned a second hospital in Agartala, Tripura in the year 2011 as a multi-specialty tertiary care centre with a capacity of 205 beds with a Nursing School. It established hospital in Dum Dum Kolkata in year, 2013 having a capacity of 150 beds and was authorized to perform renal transplant services.
In 2019, it commissioned a tertiary care hospital in Howrah with a capacity of 116 beds and in 2021, has started B.Sc degrees in Nursing training 50 students in every batch from September, 2021.
The Company signed a Memorandum of Understanding (MoU) for the construction and finishing of a hospital building at Raipur with a capacity of 152 beds in January, 2023.
The Company raised funds from public through IPO by issuing 28,233,323 Equity Shares of face value of Rs 10/- each aggregating to Rs 525.14 Crore, comprising a Fresh Issue of 2,150,537 Equity Shares aggregating to Rs 40 Crore and 26,082,786 Equity Shares aggregating to Rs 485.14 Crore through Offer for Sale in February, 2024.
GPT Healthcare Ltd IPO will close on 26 Feb 2024.
- Key regional corporate healthcare company with a strong foothold in under-penetrated and densely populated healthcare delivery markets
- ight-sized', full service and strategically located hospitals leading to high return on capital
- Well diversified specialty mix and location mix
- Ability to attract, train and retain quality medical professionals
- Track record of operating and financial performance and growth
- Professional management and experienced leadership
- Investment in infrastructure, processes and clinical excellence driving affordability, and a strong value proposition for stakeholders
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | GPT Sons Pvt Ltd | 53804700 | 67.34 | 53804700 | 65.57 |
| 2 | Dwarika Prasad Tantia | 300 | --- | --- | --- |
| 3 | OM Tantia | 300 | --- | --- | --- |
| 4 | Shree Gopal Tantia | 300 | --- | --- | --- |
- The hospital derives approximately 70% of its revenue from operations from its hospitals situated in West Bengal as these serve a significant percentage of its patients. Further, all the hospitals are located in the eastern region of India. Any impact on the revenue from these hospitals or any change in the economic or political conditions of West Bengal could materially affect its business, financial condition, results of operations and cash flows.
- The name of Ishwari Prasad Tantia, one of the members of its Promoter Group was published in the list of Wilful Defaulters by certain financial institutions. Additionally, NSDL has frozen his demat account due to non-compliance with certain provisions of the Listing Regulations by Tantia Constructions Limited ("Tantia Constructions"), wherein he is a promoter. Any adverse order, direction, notice or penalty by any bank or the RBI, SEBI or any other regulatory authority in the future against any member of the Promoter Group or any entity with which any of its member of the Promoter Group is associated, could have an adverse effect on its reputation, consequently, affecting its business operations.
- The hospital face competition from other healthcare service providers. If its unable to compete effectively, its business, results of operations and cash flows may be materially and adversely affected.
- The Bed Occupancy Rate of the Company is lower than some of its listed peers. If its unable to maintain bed occupancy rates at sufficient levels, the hospital may not be able to generate adequate returns on its capital expenditure, which could materially and adversely affect its operating efficiencies and the hospital's profitability.
- The hospital is dependent on its healthcare professionals, including its doctors that the hospital engage on a consultancy basis. Loss of or its inability to attract or retain such persons could adversely affect its business, financial condition, results of operations and cash flows.
- The hospital is dependent on availability of nurses to provide quality healthcare services. A decline in the number of trained and available nurses may lead to a decline in its ability to provide required patient care and consequently adversely affect its operations and performance.
- If the hospital does not receive payments on time from its patients, its financial condition, cash flows and results of operations may be materially and adversely affected.
- The hospital, its Promoters and Directors are involved in certain legal proceedings, any adverse developments related to which could affect its operations. The hospital could suffer significant litigation expenses in defending these claims and could be subject to significant damage, compensation, or other remedies, which could adversely affect its reputation, business, results from operations, financial conditions and cash flows.
- Its business is highly dependent on the strength of the hospital brand and reputation. Failure to maintain and enhance its brand and reputation, and any negative publicity and allegations in the media against it, may materially and adversely affect the level of market recognition, and trust in, its services, which could result in a material adverse impact on its business, financial condition, results of operations and prospects.
- Its Promoter, Chairman and Whole-time Director, Dwarika Prasad Tantia, its Promoter Shree Gopal Tantia, and its Independent Director, Hari Modi are unable to trace their bachelor's degrees and the hospital has relied on affidavits furnished by them for such details of their profile.
- The hospital is significantly dependent on certain specialties. Any impact on its revenue from such specialties could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- The hospital may experience delays in construction or commencement of operations of its proposed hospitals or the hospital may not be successful in expanding its operations to other parts of India, in a timely manner or at all, which could have an adverse effect on its business, financial condition, results of operations and cash flows.
- If the hospital is unable to keep pace with technological changes, new equipment and service introductions, changes in patients' needs and evolving industry standards as well as failure or malfunction of its medical or other equipment, its business and financial condition may be adversely affected.
- Its industry is highly regulated and requires it to obtain, renew and maintain statutory and regulatory permits, accreditations, licenses and comply with applicable safety, health, environmental, labour and other governmental regulations. Any regulatory changes or violations of such rules and regulations may adversely affect its business, financial condition and results of operations.
- The Company has been involved in an instance of regulatory non-compliance in the past. Any such non-compliance in the future may have an impact on its business, financials and results of operations.
- The hospital is dependent on a number of Key Personnel, including its Promoters, Senior Management. Loss of or its inability to attract or retain such persons could adversely affect its business, financial condition, results of operations and cash flows.
- The hospital outsource some of its service functions to third-party contractors. Any lapse by such third-party service providers may have adverse consequences on its business and reputation.
- Its Promoters, GPT Sons Private Limited, Dwarika Prasad Tantia and Om Tantia, have provided corporate/personal guarantees in relation to certain loan facilities availed by it, which if revoked may require alternative guarantees, repayment of amounts due or termination of the facilities and may adversely impact its cash flow, business and result of operations.
- The hospital may fail to protect its intellectual property rights and may be exposed to misappropriation and infringement claims by third parties, either of which may have a material adverse effect on its business and reputation.
- Its indebtedness and the conditions and restrictions imposed by its financing arrangements may limit its ability to grow its business and adversely impact the hospital's business.
- Its funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised by any bank or financial institution or any other independent agency and may be subject to change based on various factors, some of which are beyond its control. Any variation in the utilization of the Net Proceeds or in the terms of the conditions as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders' approval, and its business, financial condition and results of operations may be adversely affected.
- Certain lands on which two of its hospital buildings are operating are not owned by it but are leased on a long term basis. Further, its Registered Office is located on land owned by GPT Estate Private Limited and held by it on a short-term lease basis. Any adverse impact on the title or ownership rights of the owner or breach of the terms or non-renewal of the lease agreement on commercially favourable terms or at all may lead to disruptions and may materially and adversely impact its business, financial condition, results of operations and cashflows.
- Its insurance coverage may not adequately cover all damages arising out of the claims against its hospitals. This may have an adverse effect on the hospital's financial condition, results of operations, reputation, cash flows and prospects.
- Lack of health insurance in India may adversely affect its business, cash flows, financial condition and results of operations.
- The hospital's has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
- Its Statutory Auditor has included emphasis of matter paragraphs in their reports on its Restated Financial Information and its Restated Consolidated Financial Information.
- The hospital has certain commitments and contingent liabilities that may adversely affect its financial condition.
- Its ability to pay dividends in the future will depend on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
- The hospital may requires additional funding to finance its operations, which may not be available on terms acceptable to it, or at all, and if the hospital is unable to raise funds, the value of your investment in it may be negatively impacted.
- The hospital relies on third party suppliers and manufacturers for its supplies and equipment. Failure of such third parties to meet their obligations could adversely affect its business, results of operations and cash flows.
- If the hospital fail to achieve favourable pricing on medical consumables, pharmacy items, drugs, and surgical instruments from its suppliers or are unable to pass on any cost increases to its payers, its profitability could be materially and adversely affected.
- If the hospital is unable to establish and maintain an effective internal control, its business and reputation could be adversely affected.
- The hospital and its Promoters are exposed to legal claims and regulatory actions arising from the provision of healthcare services and may be subject to liabilities arising from claims of unfair trade practices and medical negligence which could materially and adversely affect its reputation and prospects.
- The hospital is required to handle personal information, including medical data, as a result of which its could face breach or theft of confidential and other sensitive information of its patients or procedures or any kind of data leakage in the past, any breach of its confidentiality obligations to the hospital patients, including due to data leakages or improper use of such medical information. This could expose it to fines, potential liabilities and legal proceedings, such as litigation or regulatory proceedings, which would adversely impact its reputation.
- Its Promoters and certain members of its Promoter Group hold Equity Shares in the Company and therefore, are interested in its performance in addition to their remuneration and reimbursement of expenses. Pursuant to their shareholding they will continue to retain control over the Company after completion of the Offer, which will allow them to influence the outcome of matters submitted for approval of its shareholders. Such a concentration of ownership may also have the effect of delaying, preventing, or deterring a change in control.
- This Red Herring Prospectus contains industry information that has been extracted or derived from an industry report prepared by CRISIL Research, which was commissioned and paid for by the Company exclusively for the purpose of the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The Company will not receive the proceeds from the Offer for Sale. One of its Shareholder is selling shares in the Offer and will receive proceeds as part of the Offer for Sale.
- This Red Herring Prospectus contains certain non-GAAP measures related to its operations and financial performance that may vary from any standard methodology that is applicable across the industry.
- The hospital is vulnerable to failures of its information technology system, which could adversely affect its business.
- Its hospitals are susceptible to risks arising on account of fire and other incidents. Pursuant to the nature of the Company's business any slowdown or shutdown of any unit of its hospitals could interfere with its operations. This may materially and adversely affect its business, cash flows, financial condition, and results of operations.
- The hospital's may be subject to worker unrests and increased wage expenses which could materially and adversely affect its business, financial condition, results of operations and cash flows.
The Issue type of GPT Healthcare Ltd is Book Building.
The minimum application for shares of GPT Healthcare Ltd is 80.
The total shares issue of GPT Healthcare Ltd is 28233323.
Initial public offering of 28,233,323# equity shares of face value of
Rs. 10 each ("Equity Shares") of the company for cash at a price of Rs. 186 per equity share (including a share premium of Rs. 176 per equity share) ("Offer Price") aggregating to Rs. 525.14# crores (the "Offer") comprising a fresh issue of 2,150,537# equity shares of face value of Rs. 10 each aggregating to Rs. 40.00# crores by the company (the "Fresh Issue") and an offer for sale of 26,082,786# equity shares of face value of Rs. 10 each aggregating to Rs. 485.14# crores by Banyantree Growth Capital ii, LLC (the "Investor Selling Shareholder") (the "Offer for Sale"). The offer would constitute 34.41# % of the post-offer paid-up equity share capital of the company.
The face value of the equity shares is Rs. 10 each and the offer price is 18.6 times the face value of the equity shares.
#Subject to finalization of basis of allotment.