GPT Healthcare IPO opens today. GMP, review, other details. Apply or not?

The book build issue is proposed for listing on the BSE and the NSE. The public offer has garnered 157.54 crores from anchor investors ahead of its initial public offering that opens for public subscription on Thursday.

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Ahead of the issue opening date, shares of GPT Healthcare Ltd are trading at par in the grey market today. According to the stock market observers, GPT Healthcare shares are trading in the grey market neither at a premium nor at any discount.

Important GPT Healthcare IPO details

1] GPT Healthcare IPO GMP: According to the stock market observers, GPT Healthcare shares are trading in the grey market neither at a premium nor at any discount.

2] GPT Healthcare IPO price: The mid-sized multi-specialty hospital has fixed price band of the issue at 177 to 186 per equity share.

3] GPT Healthcare IPO date: The book build issue has opened today and will remain open till 26th February 2024.

4] GPT Healthcare IPO size: The mid-sized multi-specialty hospital aims to raise 525.14 crore from its public offer out of which only 40 crore is expected via the issuance of fresh shares. The remaining 485.14 crore is reserved for the offer for sale (OFS).

5] GPT Healthcare IPO lot size: A bidder will be able to apply in lots and one lot of the public issue comprises 80 shares.

Infographic: Courtesy mintgenie

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Infographic: Courtesy mintgenie

6] GPT Healthcare IPO allotment date: The tentative date for share allocation is 27th February 2024 i.e. on Tuesday next week.

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

8] GPT Healthcare IPO listing: The public issue is proposed for listing on the BSE and the NSE.

9] GPT Healthcare IPO listing date: In the wake of the T+3 listing rule, the public issue is expected to hit the secondary market on 29th February 2024 i.e. on Thursday next week.

GPT Healthcare IPO: Apply or not?

10] GPT Healthcare IPO review: Giving ‘subscribe’ tag to the book build issue, Rajan Shinde, Research Analyst at Mehta Equities said, “We believe GPT Healthcare Ltd gives investors a favorable investment opportunity, to invest in a regional focused prominent healthcare provider in Eastern India. We like the company’s strategic focus on the regional eastern India healthcare market, operating in three cities with dense populations giving healthy growth in business and services. Their established presence and multiple healthcare delivery verticals position them as a one-stop destination for patient needs in respective micro markets. We also believe in the company’s diverse range of healthcare services ensuring quality healthcare services across various specialties and which also caters to different economic segments that would enhance their competitiveness and market penetration.”

“By looking at the financials the revenue from operations saw a modest increase of 7% between FY 2022 and FY 2023, while its profit after tax witnessed a slight drop of -6.37% during the same period. On valuation parse at the upper band of Rs.186/-, the issue is asking for a Market Cap of Rs.1526/- cr. Based on annualized FY 2024 earnings and fully diluted post-IPO paid-up capital, the company is asking a P/E of 32.5x which looks fully priced offer. Given its healthy regional presence in Eastern India and strategically situated hospitals offering a comprehensive array of medical specialties, GPT Healthcare is positioned to seize opportunities in underserved healthcare markets and strategically grow in adjacent markets with asset-light business models like Ranchi. Investors should also look at IPO offers which come with a 100% OFS issue which is an area of concern for new investors. Hence, considering all parameters we recommend investors to “SUBSCRIBE” with risk in this IPO for long-term perspective only while conservative investors can wait and watch the space post listing,” Shinde said.

VLA Ambala, a SEBI Registered RA and Founder of SMT Stock Market Today said, “GPT Healthcare, a chain of mid-sized, multi-specialty hospitals, recorded a CAGR of 36%. While its revenue surged by 7.11%, PAT declined by -6.37% in the year ending FY23. The company currently plans to start two new projects in Jharkhand and Chattisgarh after the IPO. Thanks to sectoral potential, the IPO, priced at Rs. 177-186 a share, could record a premium listing of 25%-40%. However, most of the proceeds will be used for debt repayment.”

Giving ‘avoid’ tag to the public issue, Prathamesh P Masdekar, Research Analyst at StoxBox said, “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. The company has yet to expand its operations successfully to other parts of India. The bed occupancy rates need to improve to reflect better financial performance. We, therefore, recommend an “Avoid” rating for the issue. However, we would reassess the company on improvement in financial metrics over a sustained period.”

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 22 Feb 2024, 09:11 AM IST

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