GPT Healthcare IPO: 10 key risks from the RHP you should know before subscribing

GPT Healthcare IPO opened for subscription today (Thursday, February 22). The public issue will remain open for bidders till 26th February 2024 i.e. till Monday next week. GPT Healthcare Ltd operates a chain of mid-sized full service hospitals under the ‘ILS Hospitals’ brand and provide integrated healthcare services, with a focus on secondary and tertiary care.

Here are 10 Key risks from the RHP to be considered before subscribing to the GPT Healthcare IPO

1. GPT Healthcare derives a significant portion of its revenue from operations from its hospitals situated in West Bengal as these serve a significant percentage of our patients. Further, all its hospitals are located in the eastern region of India.

Also Read- GPT Healthcare IPO: GMP, review, subscription, other details. Apply or not?

Any impact on the revenue from these hospitals or any change in the economic or political conditions of West Bengal could materially affect its business, financial condition, results of operations and cash flows.

2. GPT Healthcare is significantly dependent on certain specialties. Any impact on our revenue from such specialties could have a material adverse effect on its business, financial condition, results of operations and cash flows.

3. GPT Healthcare is dependent on its healthcare professionals, including doctors that it engages on a consultancy basis.

Loss of or its inability to attract or retain such persons could adversely affect its business, financial condition.

 

GPT Healthcare IPO opened for subscription today

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GPT Healthcare IPO opened for subscription today

4. GPT Healthcare is dependent on availability of nurses to provide quality healthcare services. A decline in the number of trained and available nurses may lead to a decline in its ability to provide required patient care and consequently adversely affect its operations and performance.

5. GPT Healthcare business is highly dependent on the strength of its brand and reputation. Failure to maintain and enhance its brand and reputation, and any negative publicity and allegations in the media against it, may materially and adversely affect the level of market recognition, and trust in, its services, which could result in a material adverse impact on its business, financial condition, results of operations and prospects.

Also Read- Exicom IPO: Issue to open on February 27, price band set at 135 to 142 per share

6. GPT Healthcare faces competition from other healthcare service providers. If GPT Healthcare is unable to compete effectively, GPT Healthcare business, results of operations and cash flows may be materially and adversely affected.

7. If GPT Healthcare is unable to keep pace with technological changes, new equipment and service introductions, changes in patients’ needs and evolving industry standards as well as failure or malfunction of its medical or other equipment, its business and financial condition may be adversely affected.

8. Healthcare industry is highly regulated and requires GPT Healthcare to obtain, renew and maintain statutory and regulatory permits, accreditations, licenses and comply with applicable safety, health, environmental, labour and other governmental regulations. Any regulatory changes or violations of such rules and regulations may adversely affect GPT Healthcare business, financial condition and results of operations.

9. Certain lands on which two of GPT Healthcare hospital buildings are operating are not owned by GPT Healthcare but are leased on a long term basis. Further, GPT Healthcare Registered Office is located on land owned by GPT Estate Private Limited and held by GPT Healthcare on a short-term lease basis. Any adverse impact on the title or ownership rights of the owner or breach of the terms or non-renewal of the lease agreement on commercially favorable terms or at all may lead to disruptions and may materially and adversely impact its business, financial condition, results of operations and cashflows.

10. Lack of health insurance in India may adversely affect GPT Healthcare business, cash flows, financial condition, results of operations and cash flows.

 

 

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Published: 22 Feb 2024, 05:26 PM IST

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