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Global Health IPO: 2022 Offering Details

Global Health IPO review

Date: 23 Nov, 2022

Author: George Alex

As the most prominent private multi-specialty tertiary care provider, Global Health IPO is among the most anticipated in the healthcare industry.

The first initial public offering (IPO) subscription period will begin on November 3, 2022, and end on November 7, 2022. The total amount sought is Rs 2,205.57 crore, of which Rs 500 crore would be raised via a fresh issuance and Rs 1,705.57 crore through an offer for sale.

But how exactly may an investor purchase shares in a newly listed company like Global Health Ltd. (GHL)? Continue reading to learn more about what might be one of the most lucrative initial public offerings (IPOs) and how to purchase Global Health shares on the stock market.

Upcoming IPO in India: What is Global Health?

In 2009, Global Health Limited inaugurated its first hospital in Gurugram. Regarding the number of available beds and total operating revenues as of March 2022, it is currently among the most significant private multi-specialty tertiary care providers working in India’s North and East regions.

The company operates under the brand name “Medanta,” which is well recognized. The areas of expertise include orthopedics, liver transplant, neurosciences, oncology, digestive and hepatobiliary sciences, and kidney and urology.

By June 30, 2022, the company covered 4.7 million square feet and 2,467 built-in beds with over 1,300 doctors working in over thirty medical specialties under the direction of seasoned department heads.

The company also runs six multi-specialty clinics in south Delhi, Darbhanga, Patna, and Subhash Chowk Gurugram, in addition to those mentioned above.

When Is the Global Health IPO Date?

Offer Open03-Nov-22
Offer close07-Nov-22
Finalization of Allotment11-Nov-22
Initiation of Refunds    14-Nov-22
Credit to Demat Account15-Nov-22
IPO Shares Listing Date16-Nov-22

How Much is Global Health Worth?

The MoHFW budget has grown year over year, with an 11% CAGR between fiscal 2011 and fiscal 2023.

The Indian Government has also undertaken further steps to enhance the healthcare industry. The introduction of an open platform will mark the beginning of the national digital health ecosystem. From 2010 to 2016, government spending on healthcare stayed within a narrow 20–30% range of current expenditure. According to the National Health Policy, the Government intends to raise public healthcare spending from its current level of 2% of GDP to 2.5% to 3.0% by 2025.

In addition, CRISIL Research forecasts that the Indian healthcare delivery market will reach a value of between Rs 5.5 and Rs 5.7 trillion by the end of the fiscal year 2023. Over the next few years, occupied beds will generate more significant average revenue, causing this expansion (also known as “ARPOB.”) Combined with stabilization of regular treatments, surgeries, and outpatient department visits, all of which will occur with a decreased incidence of pandemic disruption.

Strength and Opportunities of Global Health IPO:

  1. The company offers Tertiary and Quaternary care across India and is renowned for its clinical proficiency, particularly in challenging handling patients.
  2. Global Health Ltd is one of the biggest private, multi-specialty tertiary care providers in India’s North and East.
  3. The company is a “Doctor-led hospital,” meaning that knowledgeable healthcare professionals run it.
  4. The company features a top management team with institutional shareholder backing that is seasoned.
  5. The company has created several institutes emphasizing academics and clinical research.
  6. Investors should consider the company since it has a successful operational and financial history.
  7. The company’s revenue has grown significantly over the last three years.
  8. The company’s margins increased dramatically from FY20 to FY22 and Q1 FY23.
  9. The company operates significant hospital networks with state-of-the-art facilities, technology, and medical supplies.
  10. Their training and expertise and consistently rated as the finest in the industry.
  11. The company is attempting to expand other service sectors like digital health.
  12. The company emphasis is on underserved regions with high population densities, and it is present in the largest or capital cities of big states (NCR, Lucknow, and Patna)

Weaknesses and Risks of Global Health IPO:

  1. A small number of hospitals that account for a significant amount of the company’s income are primarily reliant on it. Any modifications there will result in deterioration.
  2. The availability of medical personnel is crucial to the company. Any changes to the retention rate might have an impact on the company.
  3. The company might face substantial expenses related to hiring staff, maintaining and repairing the infrastructure, and purchasing expensive medical equipment. A failure to recover these costs might negatively impact profits.
  4. The company must adhere to strict rules and regulations and provide healthcare that is of a high grade. Failure to follow them might harm the company’s image.
  5. Legal risks and hazards inherent in the healthcare industry are also a concern for the company.
  6. The company has several lawsuits pending against them, its directors, subsidiaries, and promoters.
  7. Profits from the company’s IPO also include OFS, which requires money to buy out shareholders, and the company receives nothing in return.
  8. Covid-19 spread, and restrictions on domestic and international travel affected the company. These pandemics are challenging to forecast and might have repercussions in the years to come.
  9. The company’s subsidiaries, MHPL and GHPPL, suffered losses in the previous fiscal year and might continue to do so.
  10. A few property parcels that house the hospitals and clinics are not permanently owned or leased by the company. The problem leaves them exposed and might result in significant losses.
  11. The company presently runs five hospitals and six multi-specialty clinics, making money. Any decrease in revenue from these clinics and hospitals’ activities might affect the company.
  12. Before participating in this IPO, investors should carefully consider the risk factors included in the RHP of the IPO document.
  13. In India, the cost of delivering healthcare services is expensive, and the background of COVID-19 makes this cost much worse.
  14. The North and East of the country generate most of the company’s income. Thus, any substantial change in the area’s geography or economy would immediately impact the company.

Global Health IPO Review:

According to the Top traders in India, one of the biggest private tertiary care providers across various specialties is GHL. As the most well-known brand in the Indian healthcare industry, “Medanta” serves India’s northern and eastern regions.

The issuer has a sizable patient base, effective cost control, and a developing financial profile. The 33% promoter share will, however, decrease after the IPO. With a P/E of 43, the issue is attractively valued compared to an average industry P/E of 51.93.

Since there was not a substantial quantity of value left on the table for the investor, there was a lower number of subscriptions than typical, and the primary factor in this problem is OFS (Offer for Sale). On November 16, 2022, a quiet listing will most likely occur. GMP is now Rs. 20, which is around 6% greater than the IPO price. As a result, the company only received long-term investors.

By George Alex

George Alex, a business/E-commerce copywriter and professional content writer at Gator Packaging. Having more than 5 years working experience in the packaging industry, I am writing well-structured articles and guest posts on the most searched topics.

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