Medanta Hospital IPO Opens Soon: The initial public offering (IPO) of Global Health, which operates hospitals under the Medanta brand — would open for public subscription next month. The initial share sale would commence on November 3 and conclude on November 7. According to merchant banking sources, the IPO size could be about Rs 2,200 crore.
The Medanta IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore, and an Offer-For-Sale (OFS) of up to 5.08 crore equity shares. As a part of the OFS, Anant Investments, an affiliate of private equity major Carlyle Group and Sunil Sachdeva (jointly with Suman Sachdeva) will offload equity shares.
At present, Anant Investments holds 25.64 per cent stake in Global Health and Sachdeva owns 13.41 per cent stake in the company. Proceeds from the fresh issue will be used to pay debt and general corporate purposes. Founded by Naresh Trehan, a renowned cardiovascular and cardiothoracic surgeon, Global Health is a leading private multi-speciality tertiary care provider in the North and East regions of India.
It operates a network of five hospitals under the ‘Medanta’ brand in Gurugram, Indore, Ranchi, Lucknow and Patna. In addition, a hospital is under construction in Noida, Uttar Pradesh. After the completion of its Noida hospital in fiscal 2025, the company’s total installed beds are projected to exceed 3,500.
Kotak Mahindra Capital Company, Credit Suisse Securities (India), Jefferies India and JM Financial are the book-running lead managers to the IPO.
It provides healthcare services in over 30 medical specialties and engages over 1,300 doctors and its operational hospitals have 2,467 installed beds as of June 2022, the document said.
While the anchor book will open on November 2, the shares will be credited to the accounts of successful bidders on November 15 and will begin trading the next day.
The firm intends to utilise Rs 375 crore from the proceeds to repay loans by its arm Global Health Patliputra Pvt Ltd and Medanta Holdings Pvt Ltd by investing via debt or equity infusion.
As of June 2022, Global Health had outstanding borrowings of Rs 842.28 crore. For the June quarter, the firm reported revenue of Rs 617.21 crore against Rs 485.49 crore in the year-ago group. Net profit for the quarter stood at Rs 58.71 crore against Rs 41.76 crore in the year-ago period.
In 2019, TPG and Temasek-backed Manipal Hospitals were in talks to acquire Medanta Hospitals and its board had accepted an offer of Rs5,800 crore by Manipal Hospitals but the deal did not materialise.
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