Global Health IPO Date | Global Health Limited IPO Analysis | Global Health IPO Valuation | Global Health IPO Review |
According to a PTI report on September 30, Global Health Limited, which manages and maintains hospitals under the Medanta name, has filed preliminary paperwork with the capital market regulator SEBI to raise funds through an initial public offering (IPO). Global Health IPO will involve a fresh issue of equity shares worth Rs 500 crore and an offer for sale of up to 4.84 crore equity shares, according to the red herring prospectus (DRHP). The new offering’s revenues will be used to pay down debt and for other corporate purposes.
As part of the OFS, Anant Investments, a Carlyle Group affiliate, will sell up to 4.33 crore equity shares. Sunil Sachdeva, co-founder of Global Health, will sell up to 51 lakh equity shares with Suman Sachdeva. Global Health is now owned by Anant Investments, which owns 25.67 percent, and Sachdeva, which owns 13.43 percent. Kotak Mahindra Capital Company, Credit Suisse Securities (India), Jefferies India, and JM Financial are the book-running lead managers for the IPO.
About Global Health Company
According to the CRISIL Report, they are one of India’s leading private multi-specialty healthcare providers, with significant expertise in cardiology and cardiac science, neurosciences, cancer, digestive and hepatobiliary sciences, orthopedics, liver transplant, and renal and urology. They have a network of four hospitals in operation (Gurugram, Indore, Ranchi, and Lucknow), one hospital under construction with an operational outpatient center (Patna), and one hospital scheduled for development (Noida) under the “Medanta” name. Global Health IPO provides healthcare services in over 30 medical specialties and employs over 1,100 doctors who are managed by highly experienced department directors. Their operational facilities measure 3.7 million square feet and have 2,176 installed beds as of March 31, 2021.
DR. NARESH TREHAN is the company’s promoter. The issue’s lead managers are Kotak Mahindra Capital Company Limited, Credit Suisse Securities (India) Private Limited, Jefferies India Private Limited, and JM Financial Limited, with KFin Technologies Private Limited serving as the Registrar.
Global Health IPO Initial Documentation Filed with SEBI
Global Health, founded by Naresh Trehan, a renowned cardiovascular and cardiothoracic surgeon, is a substantial private multi-specialty healthcare provider in India’s northern and eastern regions. It operates four Medanta hospitals in Gurugram, Indore, Ranchi, and Lucknow, which are backed by private equity groups including Carlyle Group and Temasek. In addition, one hospital is under construction in Patna, while another is proposed for Noida. Due to pent-up demand, strong fundamentals, improving affordability, and the Ayushman Bharat Yojana, the Indian healthcare delivery market is predicted to grow at a consistent 15-17 percent between FY21 and FY25. Furthermore, the country has a bed density of only 15 beds per 10,000 people, which is lower than the world average of 29 beds.
Approval by Union Minister Piyush Goyal
On Wednesday, Union Minister Piyush Goyal approved the Export Credit Guarantee Corporation of India’s (ECHC) initial public offering on the stock exchange. The government has made a range of efforts to enhance the export sector under PM Modi’s supervision, Goyal said at a news conference. The government has approved a Rs 4,400 crore capital infusion to ECGC Ltd., formerly known as Export Credit Guarantee Corporation of India Ltd., over a five-year timeframe, from Fiscal 2021-2022 to FY 2025-2026. The permitted infusion, together with measures to correctly coordinate with ECGC’s initial public offering listing procedure, will improve ECGC’s underwriting capabilities to support additional exports. According to the Cabinet Committee on Economic Affairs (CCEA), the Government of India established the ECGC under the Companies Act in 1957 to encourage exports by providing credit insurance services to exporters against non-payment risks by overseas customers due to economic and political causes.
Objects of Global Health IPO
Their business plan is to use the net proceeds to sponsor the following projects:
- Repayment / prepayment of borrowings of their companies, GHPPL and MHPL, in full or in part.
- Corporate purposes in general.
Ongoing IPOs
Business Strategy for Global Health IPO
Some of the Business strategies for Global Health IPO are as follows:
- Keep investing in bed capacity growth in existing institutions, as well as the development of new super-specialties, the use of new technologies, and an emphasis on preventative care.
- Improve clinical competencies and operational efficiency
- Continue to recruit, engage, and train well-known doctors and other medical professionals.
- Utilize technology to enhance the patient experience and expand their digital health offerings.
- Increase clinical care outside of the hospital and throughout the patient’s lifespan
- Increase their concentration on academics and research to strengthen their thinking leadership.
Global Health IPO Offer Details or Issue Details
| Equity Shares Offered | Up to X Equity Shares aggregating up to Rs.[●] Million |
| Issue Reserved for the Market Makers | Up to [●] Equity Shares aggregating up to Rs.[●] Million |
| Net Issue to the Public | Up to [●] Equity Shares aggregating up to Rs.[●] Million |
| Retail Investors Portion | Not less than [●] Equity Shares |
| Other than Retail Individual Investors | Not more than [●] Equity Shares |
| Equity Shares outstanding prior to the Issue | 253,223,925 Equity Shares |
| Equity Shares outstanding after the Issue | X Equity Shares |
Global Health IPO Basis Offer Price
The company, in cooperation with the Lead management, determines the issue price based on the qualitative and quantitative considerations listed below. The following are some of the qualitative factors:
- Concentrate on clinical trials and academics.
- Leading tertiary and quaternary care provider in India, with a reputation for clinical excellence, particularly in complex cases.
- Strong operational and financial performance in the past
- Hospitals run by doctors, which are directed by professional and experienced doctors who are among the best in the industry.
- Large-scale hospitals with world-class facilities as well as cutting-edge medical technologies and equipment
- Existing facility expansion and diversification into new services, including digital health, are both possibilities.
- Focus on underserved areas with dense populations, as well as presence in large states’ top or capital cities (NCR, Lucknow, and Patna)
- Senior management team with extensive experience and significant institutional shareholder support.
The quantitative factors are as follows:
| Basic EPS | Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-21 | 1.15 | 1.14 | 2.08 | 55.76 |
| 31-Mar-20 | 1.45 | 1.44 | 2.69 | 54.70 |
| Mar-19 | 2.06 | 2.04 | 3.96 | 52.73 |
Global Health IPO Competitive Peers
| Face Value (Rs.) | P/E | EPS (Rs.) | Return on Net Worth (%) | Total Income (Rs. in Millions) | |
| Global Health Limited | 2 | [●] | 1.15 | 2.08 | 14,781.58 |
| Listed Peers | |||||
| Apollo Hospitals Enterprise Limited | 5 | 410.71 | 10.74 | 2.85 | 1,06,050.00 |
| Fortis Healthcare Limited | 10 | NA | (1.45) | (0.84) | 40,766.77 |
| Max Healthcare Institute Limited | 10 | NA | (1.59) | (2.44) | 26,194.10 |
| Narayana Hrudayalaya Limited | 10 | NA | (0.70) | (1.28) | 26,105.22 |
Financial Highlights
| Amount (in INR & Million) | |||
| 31 – Mar – 2021 | 31 – Mar – 2020 | 31 – Mar – 2019 | |
| Total Assets | 26,941.05 | 26,662.87 | 24,300.05 |
| *Total Revenue | 14,781.58 | 15,442.67 | 15,059.87 |
| Total Expense | 14,456.94 | 14,803.78 | 14,227.19 |
| Profit After Tax | 288.05 | 363.27 | 513.03 |
Earnings per Equity Share (in Million)
| 31 – Mar – 2021 | 31 – Mar – 2020 | 31 – Mar – 2019 | |
| Basic | 1.15 | 1.45 | 2.06 |
| Diluted | 1.14 | 1.44 | 2.04 |
Company Promoters
The Company Promoters are as follows:
| S. No. | Promoters Name |
| DR. NARESH TREHAN |
Promoters Holding for Global Health IPO
| Pre Issue Share Holding | % |
| Pos Issue Share Holding | % |
Key Managerial Personnel
The Key Managerial Personnel are as follows:
| S. No. | Key Managerial Personnel | Designation |
| Naresh Trehan, | Chairman and Managing Director | |
| Ravi Kant Jaipuria | Non-Executive Nominee Director | |
| Sunil Sachdeva | Non-Executive Director | |
| Venkatesh Ratnasami | Non-Executive Nominee Director | |
| Vikram Singh Mehta | Non-Executive Independent Director | |
| Praveen Mahajan | Non-Executive Independent Director |
Lead Managers of Global Health IPO
Some of the Lead Managers of Global Health IPO are as follows:
| S. No. | Managers Name |
| Kotak Mahindra Capital Company Limited | |
| Jefferies India Private Limited | |
| JM Financial Limited | |
| Credit Suisse Securities (India) Private Limited |
Global Health IPO Registrar
| Address: | KFin Technologies Private Limited (formerly known as Karvy Fintech Private Limited)Selenium, Tower-BPlot 31 and 32, Financial DistrictNanakramguda, SerilingampallyHyderabad, Rangareddi 500 032Telangana, India |
| Contact Number: | + 91 40 6716 2222 |
| E-mail id: | globalhealth.ipo@kfintech.com |
| Investor grievance e-mail id: | einward.ris@kfintech.com |
| Contact Person: | M Murali Krishna |
| Official Website: | www.kfintech.com |
| SEBI Registration No.: | INR000000221 |
Other Details of Global Health IPO
| Legal Counsel to the Company | S&R Associates |
| Statutory Auditor | Walker Chandiok & Co LLP, Chartered Accountants |
| Bankers to the Company | HDFC Bank Limited, Yes Bank Limited, ICICI Bank Limited |
Global Health IPO Review by Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |