The much-awaited GPT Healthcare IPO is set to open on Thursday with a price band of Rs 177-186 per share. With a fresh issue of equity shares and an offer for sale, investors are eagerly looking at the subscription details. Let’s delve deeper into what the GMP signals ahead of the subscription and what investors can expect from this IPO.
Price Band and Subscription Details:
GPT Healthcare has fixed a price band of Rs 177-186 per share for its Rs 525-crore IPO, which closes on February 26. Investors can bid for 80 shares in one lot and multiples thereafter. The allocation is divided among qualified institutional buyers, non-institutional bidders, and retail investors, offering everyone a fair chance to participate.
Company Background and Financial Performance:
GPT Healthcare, a Kolkata-based company, has shown promising growth in its total income, primarily driven by a rise in income from hospital services. Although the net profit for the fiscal year 2023 saw a slight decline, the company’s revenue from operations (ex-Covid) has shown a commendable growth rate. With a strong ROCE for FY23, GPT Healthcare seems to be on a solid financial footing.
Industry Peers and Competition:
GPT Healthcare competes with industry peers such as Global Health, Krishna Institute of Medical Sciences, Jupiter LifeLine Hospitals, and Yatharth Hospital. Understanding the competitive landscape is crucial for investors to assess the potential of the company in the market.
Allocation Breakdown and Offer Details:
The IPO consists of a fresh issue of equity shares and an offer for sale by BanyanTree Growth Capital II, LLC. The proceeds from the fresh issue will be used for prepayment of outstanding borrowings and general corporate purposes. Understanding the allocation breakdown can help investors in making informed decisions.
Expert Views and Recommendations:
JM Financial is the sole book-running lead manager for the IPO, and experts have shared their views on the potential of GPT Healthcare in the market. It is essential for investors to consider expert recommendations before subscribing to the IPO.
FAQs:
- What is the price band for the GPT Healthcare IPO?
- The price band for the IPO is set at Rs 177-186 per share.
- How is the allocation divided among different investor categories?
- 50% for qualified institutional buyers, 15% for non-institutional bidders, and 35% for retail investors.
- What is the primary use of the proceeds from the fresh issue?
- The proceeds will be used for prepayment or repayment of outstanding borrowings and general corporate purposes.
- How has GPT Healthcare’s revenue performance been over the years?
- The company’s revenue from operations (ex-Covid) grew at a CAGR of 53.87% over FY21-23.
- Who are the key industry peers of GPT Healthcare?
- Some of the industry peers include Global Health, Krishna Institute of Medical Sciences, Jupiter LifeLine Hospitals, and Yatharth Hospital.