Today is GPT Healthcare’s IPO opening. Details such as subscription status, GMP, review, and more. Should I apply or not?

GPT Healthcare IPO: Today, GPT Healthcare Ltd.’s first public offering (IPO) was released to the Indian main market. Bids on the public issue will be accepted until Monday of the following week, or until February 26, 2024. The pricing range for the public offering of the mid-sized multispecialty hospital is set at ₹177 to ₹186 per equity share.

It is suggested that the book construction issue be listed on the NSE and BSE. An initial public offering (IPO) is scheduled for Thursday, and anchor investors have contributed ₹157.54 crores to the public sale in advance.

Status of GPT Healthcare’s IPO subscription
The book construction issue was subscribed 0.27 times by 2:27 PM on the first day of bidding, while its retail component was booked 0.51 times. The public issue’s NII section received 0.08 subscriptions.

Shares of GPT Healthcare Ltd. are already trading at par on the gray market, ahead of the issue opening date. Stock market watchers claim that shares of GPT Healthcare are neither selling at a premium nor a discount on the gray market.

Key information about the GPT Healthcare IPO:

1] GPT Healthcare IPO GMP: The shares of GPT Healthcare aren’t trading on the grey market at a premium or a discount, as per stock market watchers.

2] GPT Healthcare IPO pricing: The mid-sized multispecialty hospital is offering equity shares at a fixed price range of ₹177 to ₹186.

3] GPT Healthcare IPO date: As of right now, the book build issue is live and will run until February 26, 2024.

4] GPT Healthcare IPO size: The mid-sized multispecialty hospital hopes to collect ₹40 crore via the sale of new shares, leaving a total of 525.14 crore to be raised through the public offer. The offer for sale (OFS) is set aside for the remaining ₹485.14 crore.

5] GPT Healthcare IPO lot size: Bidders may submit their applications in lots, with each lot consisting of 80 shares in the public offering.

6] GPT Healthcare IPO allotment date: Tuesday of the next week, February 27, 2024, is the estimated date for share distribution.

7] Link Intime India Private Limited has been designated as the official registrar of the book build issue for the GPT Healthcare IPO.

8] GPT Healthcare initial public offering (IPO) listing: The BSE and NSE are considering listing the public offering.

9] GPT Healthcare IPO listing date: Due to the T+3 listing requirement, the public offering is anticipated to begin trading on the secondary market on Thursday of the next week, on February 29, 2024.

IPO for GPT Healthcare: Should I apply?
10] Review of GPT Healthcare’s IPO: Appending the’subscribe’ label to the book build problem, “We believe GPT Healthcare Ltd gives investors a favorable investment opportunity, to invest in a regionally focused prominent healthcare provider in Eastern India,” Mehta Equities Research Analyst Rajan Shinde said. We like the company’s strategic emphasis on the healthcare sector in eastern India, where it operates in three densely populated cities, resulting in robust business and service development. They are positioned as a one-stop shop for patient requirements in their specific micromarkets thanks to their well-established presence and variety of healthcare delivery verticals. Additionally, we think that the company’s wide range of healthcare offerings, which guarantee high-quality treatment in a number of specializations and also serve a variety of economic groups, will increase their competitiveness and market penetration.”

According to the financials, the company’s profit after taxes decreased by a little amount of -6.37% over the same year, although its operating revenue increased by a modest 7% between FY 2022 and FY 2023. The issue is requesting a market cap of Rs. 1526/-cr based on valuation calculated at the top band of Rs. 186/-. The company’s offer seems fully priced at 32.5 times P/E based on fully diluted post-IPO paid-up capital and annualized FY 2024 profits. GPT Healthcare is well-positioned to take advantage of opportunities in underserved healthcare markets and strategically expand into neighboring markets with asset-light business models, such as Ranchi, thanks to its strong regional presence in Eastern India and strategically placed hospitals offering a wide range of medical specialties. A worry for new investors is the 100% OFS problem that comes with IPO offerings, which is something other investors should consider. Therefore, taking into account these factors, we advise investors to “SUBSCRIBE” with risk in this IPO only for the long term, while cautious investors may hold off and monitor the market after listing,” Shinde said.

According to VLA Ambala, the founder of SMT Stock Market Today and a SEBI Registered RA, GPT Healthcare, a network of mid-sized, multispecialty hospitals, had a 36% compound annual growth rate. In the year ending in FY23, PAT decreased by -6.37% despite a 7.11% increase in sales. Following the IPO, the business now intends to launch two additional projects in Jharkhand and Chattisgarh. With a share price of Rs. 177–186, the IPO has the potential to record a premium listing of 25%–40% due to the sector’s potential. But the majority of the money raised will go toward paying off debt.”

Putting the public problem under the “avoid” category, “If we attribute FY24 earnings to the company’s post-IPO equity capital, the asking price at the upper price band is at a P/E of 31.7x,” said Prathamesh P. Masdekar, Research Analyst at StoxBox. The business has not yet been able to effectively extend its operations to other regions of India. In order to demonstrate improved financial success, the bed occupancy rates must increase. As a result, we advise against ranking the problem higher than “Avoid”. But we would reevaluate the business based on consistent improvements in financial indicators.”

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