GPT Healthcare Limited IPO -IPO DETAILS
| IPO Date | Feb 22, 2024, to Feb 26, 2024 |
| Price Band | ₹176 to ₹186 per share |
| Lot Size | 80 Shares |
| Issue Size | ₹524.14 Cr. |
| Allotment Date | 27 February 2024 |
| Listing Date | 29 February 2024 |
Company Overview
GPT Healthcare, a regional healthcare operator based in Eastern India, runs a series of mid-sized full-service hospitals under the ILS Brand, offering integrated healthcare services. By September 2023, the company had expanded to operate four hospitals in Eastern India, with three situated in West Bengal and one in Tripura. These four hospitals collectively provide 561 beds and deliver healthcare services across 35 specialties.
Dr. Om Tantia, the founder and manager, brings over 40 years of medical experience, having established ILS Hospitals in 2000. Strategically, the company targets the relatively underserved healthcare market of Eastern India. Its West Bengal hospitals are strategically located in densely populated areas like Kolkata and Howrah, ensuring consistently high occupancy rates throughout the year. GPT boasts a diverse portfolio of specializations including Internal Medicine, Diabetology, Laparoscopic and general surgery, renal transplants, orthopedics, and joint replacements.
Objective of the IPO
Here are a few quick reasons why company is going public:
1. The company plans to allocate ₹30 Cr from the proceeds of the issue towards repaying borrowings and settling other outstanding obligations.
2. Allocation of funds for general corporate purposes.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Reserves & Surplus | Borrowings |
| 31-Mar-21 | 317.21 | 248.86 | 21.09 | 132.68 | 75.96 | 122.93 |
| 31-Mar-22 | 323.22 | 342.40 | 41.66 | 156.96 | 78.28 | 95.52 |
| 31-Mar-23 | 326.76 | 366.73 | 39.01 | 164.14 | 85.46 | 64.67 |
Key Performance Indicator
| Market Cap. (Cr.) | 1,526.22 | EPS (Rs) | 4.88 |
| ROE | 23.59% | Debt/Equity | 0.39 |
| ROCE | 26.09% | P/E | 32.49 |
Pros
- GPT strategically positions itself across the densely populated yet underdeveloped Eastern Indian market, ensuring widespread reach and accessibility.
- GPT adopts an asset-light operational model by entering long-term lease agreements with property owners to establish hospitals. This strategy optimizes capital expenditure, facilitating continual expansion initiatives.
- GPT’s operational framework encompasses a diversified range of specialties within its multispecialty hospitals. No single specialty contributes more than 20% to the company’s overall revenue, ensuring a balanced service mix.
- Demonstrating financial growth, GPT has observed an upward trend in its Average Revenue per Operating Bed, increasing from Rs. 24,681 in FY21 to Rs. 32,979 as of September 2023.
Cons
- GPT Healthcare faces revenue concentration risk as three out of its four hospitals are in West Bengal, contributing to 70% of its total revenue. Furthermore, all the company’s hospitals are situated in Eastern India, intensifying this risk.
- The company heavily relies on specialized treatments such as diabetology, nephrology, and laparoscopic procedures, which account for approximately 90% of its revenue. Any decline in demand for these specialized services could have a significant impact on overall revenue generation.
- GPT Healthcare’s bed occupancy rate stands at 60%, slightly lower than competitors such as Global Health, KIMS, and Jupiter Life Line Hospitals, which report rates of 60%, 73%, and 62% respectively. This lower occupancy rate presents a challenge in optimizing operational efficiency and revenue generation compared to industry peers.
How to Apply for this IPO
1. Go to https://ipo.adityatrading.in/
2. Enter your Client ID
3. Enter the OTP received in your registered mobile number.
4. Choose the IPO and click on apply button.
5. Enter the UPI ID, Quantity, and Cut off the price.
6. Click on submit button
7. Confirm the mandate request received on your phone by entering the UPI Pin.
You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”
