The GPT Healthcare IPO has set its price band between ₹177 to ₹186 per equity share, aiming to provide investors with a lucrative opportunity. Scheduled for subscription from February 22 to February 26, this IPO has garnered considerable attention in the financial world.
Allocations and Ratios
With a floor price set at 17.7 times the face value and a cap price at 18.6 times, the price/earnings ratio based on diluted EPS presents an attractive investment proposition. Compared to the industry average P/E ratio, GPT Healthcare’s valuation appears promising.
Lot Size and Investor Distribution
The IPO offers a lot size of 80 equity shares, facilitating easy participation for investors. Notably, it reserves 50% for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors, ensuring a balanced distribution.
Fundraising Goals and Utilization
The company aims to raise approximately ₹40 crore through the fresh issue and plans to issue up to 2.61 crore shares as part of an offer-for-sale. The net proceeds will be directed towards fulfilling general corporate objectives and repaying existing loans, reflecting a strategic financial approach.
Business Profile and Operations
GPT Healthcare Ltd operates under the brand ‘ILS Hospitals’, offering a wide range of integrated healthcare services across various specialties. With a focus on secondary and tertiary care, the company manages four multispecialty hospitals in West Bengal and Agartala, catering to diverse medical needs.
Financial Performance and Peer Comparison
Despite a slight decline in profit after tax, GPT Healthcare witnessed a notable revenue increase between March 2022 and March 2023. When compared to listed peers in the industry, the company’s valuation appears competitive, positioning it favorably in the market.
Timeline and Listing
After finalizing the subscription period, we will finalize the basis of allotment and initiate refunds by February 28. We expect to promptly allot shares to demat accounts thereafter. GPT Healthcare is set to debut its shares on both BSE and NSE on February 29. Marking a significant milestone in its journey.
Conclusion
The GPT Healthcare IPO signifies a promising venture into the future of healthcare investment. With a robust business model, strategic financial planning, and competitive positioning. The company holds potential for substantial growth, promising returns for investors venturing into the dynamic healthcare sector.
