The IPO for GPT Healthcare ends today; should you subscribe? Verify Subscription Status and GMP

Today, Monday, February 26, 2024, marks the closing of the GPT Healthcare IPO. The subscription period for this issue began on February 22 and ends today at the conclusion of trade. Although on the second day of the IPO the retail segment was completely subscribed, as of February 23 the entire subscription was reported to be about 85%.

Date of Opening: February 22, 2024

Closing Date: 26 February 2024, today

Range of Prices: Rs 177 to Rs 186 per share.

Date of Listing: Probably scheduled for February 29, 2024

The retail component of the GPT Healthcare IPO was 1.25 times oversubscribed, according to BSE statistics. 79% of subscribers to the Non-Institutional Investors (NII) component and 19% of subscribers to the Qualified Institutional Buyers (QIB) portion respectively.

37% of the GPT Healthcare IPO’s subscribers were active on the first day of the offering. Bids for the QIB component of the issuance are still outstanding, while 66% of the retail portion was subscribed and 18% of the NII portion was booked.

With a face value of Rs 10, each equity share in the GPT Healthcare IPO is priced between Rs 177 and Rs 186. Investors may then subscribe in multiples of 80 equity shares, with the IPO lot size consisting of 80 equity shares.

The GPT Healthcare IPO raised Rs 157.54 crores from anchor investors on Thursday, February 22. The business disclosed to the markets that 84,69,996 equity shares, valued at Rs 186 per share, had been allotted.

Up to 50% of the shares in the GPT Healthcare IPO are reserved for qualified institutional buyers (QIB), at least 15% are designated for non-institutional investors (NII), and at least 35% of the offer is set aside for retail investors.

GPT Healthcare Ltd. provides complete healthcare services, with a focus on secondary and tertiary care, and oversees a network of mid-sized full-service hospitals known as “ILS Hospitals.”

The GPT Healthcare IPO is slated to list on the NSE and BSE on February 29, 2024, and the shares will be allocated on February 27.

IPO GMP for GPT Healthcare Today

Today, Monday, February 26, 2024, at 11:00 a.m., the GPT Healthcare IPO’s Grey Market Premium (GMP) is Rs 9. This indicates that the IPO is selling in the unofficial gray market for Rs 9, above its issuance price range of Rs 177 to Rs 186 per share.

The listing price of the IPO is not guaranteed by the GMP, which is an unofficial indication. It’s important to keep in mind that the GMP is not a trustworthy predictor of the stock’s future performance.

Should You Subscribe to the GPT Healthcare IPO?

“At the upper price band, the company is valuing at P/E of 39.1 times with a market cap of Rs 1,526.2 crore post issue of equity shares and return on net worth of 23.7% in FY23,” brokerage Anand Rathi said in a note, assigning the recommendation of “subscribe long-term.” Regarding value, we think the business is priced appropriately. Therefore, we advise the IPO to get a “subscribe for long term” grade.

Details about GPT Healthcare’s IPO

The IPO consists of an offer for sale (OFS) by private equity company BanyanTree Growth Capital II of up to 2.6 crore equity shares and a new issuance of equity shares totaling Rs 40 crore.

BanyanTree is selling all of its shares in Kolkata-based GPT Healthcare, which it owns 2.6 crore shares in, or 32.64 percent of the firm.

The Rs 30 crore in new issue proceeds would be utilized for general company objectives and debt repayment.

At the lower end of the pricing range, the IPO is expected to raise Rs 501.67 crore, and at the top end, Rs 525.14 crore.

In 2000, Dwarika Prasad Tantia, Dr. Om Tantia, and Shree Gopal Tantia established GPT Healthcare, which began as an eight-bed hospital in Kolkata. With a bed capacity of 561, it now runs four full-service multispecialty hospitals.

Global Health Ltd., Krishna Institute of Medical Sciences Ltd., Jupiter Life Line Hospitals Ltd., Yatharth Hospital & Trauma Care Services Ltd., and Shalby Ltd. are some of the company’s stated industry competitors.

Retail investors will get 15% of the offer, non-institutional investors would receive 35%, and qualifying institutional purchasers will receive half of the issue. Following the minimum of 80 equity shares, investors may bid in multiples of 80 equity shares.

From Rs 337.41 crore in FY22 to Rs 361.03 crore in FY23, its total revenue climbed by 7.3%.

The issue’s lone book-running lead manager is JM Financial.