Business: Founded in 2000 by laparoscopic surgeon Dr. Om Tantia as an eight-bed hospital in Salt Lake, Kolkata, the company now runs four secondary and tertiary care hospitals in Dum Dum, Salt Lake, Howrah in West Bengal, and Agartala in Tripura, with a total of 561 beds. Each hospital offers integrated diagnostic services and pharmacies. GPT Healthcare has also signed MoUs to establish hospitals in Raipur, Chhattisgarh, and Ranchi, Jharkhand, expected to be operational by 2025-26. The company plans to expand to other tier-II cities like Varanasi, Patna, Guwahati, Kanpur, and Cuttack, although new hospitals take time to mature and generate returns.
Financials & Growth Prospects: Revenue has grown at a 22% CAGR to ₹361 crore in FY23, with a nearly doubled net profit of ₹39 crore. The Ebitda margin has been over 21% for the last three years. For the six months ending September 2023, the average revenue per operating bed was ₹32,979, with a bed occupancy rate of 60%. The IPO will help reduce debt and finance costs, improving the bottom line.
Valuations: GPT Healthcare is operating in under-served markets in eastern India and has seen success post-listing. However, at an implied market capitalization of over ₹1,500 crore, the IPO values the company at 32.5 times its estimated FY24 earnings, fully pricing in its size and scale compared to other recently listed hospital companies. Long-term investors may consider waiting for better price discovery post-listing.
RAISES Rs 157.5 CR FROM ANCHORS: GPT Healthcare raised ₹157.54 crore from anchor investors ahead of its IPO, offering 8.4 million shares at ₹186 each. Kotak Mutual Fund, Axis MF, Bandhan MF, Aditya Birla Sun Life Insurance, and Societe Generale were among the participating investors.
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