Global Health Limited IPO

Apply 0
Avoid 0

i. Global Health Limited is one of the largest private multi-speciality tertiary care providers operating in the North and East regions of India in terms of bed capacity and operating revenues amongst the players that operate in the North and East regions of India, with key specialties of cardiology and cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopaedics, liver transplant, and kidney and urology.

 ii. Under the “Medanta” brand, they have a network of five hospitals currently in operation (Gurugram, Indore, Ranchi, Lucknow and Patna) and one hospital (Noida), which is under construction. As at June 30, 2022, they provide healthcare services in over 30 medical specialties and engage over 1,300 doctors led by experienced department heads and, spanning an area of 4.7 million sq. ft., their operational hospitals have 2,467 installed beds.

iii. Global Health Limited was founded by Dr. Naresh Trehan, a world-renowned cardiovascular and cardiothoracic surgeon. He has been awarded the prestigious Padma Bhushan and the Padma Shri, the third and fourth-highest civilian awards in India, and the BC Roy award, in recognition of his distinguished contribution to medicine as well as a special award for outstanding contributions as ‘Indian Father of Cardiac Surgery’ by the American Association of Cardiologists of Indian Origin.

iv. Dr. Trehan is the driving force behind the hospitals. They strive to deliver advanced healthcare by establishing institutes of excellence that integrate medical care, teaching and research all while providing affordable medical services to patients. Their hospital at Gurugram was ranked as the best private hospital in India for three consecutive years in 2020, 2021 and 2022, and was the only Indian private hospital to be featured in the list of top 200 global hospitals in 2021 and was featured in the list of top 250 global hospitals in 2022 by Newsweek.

v. As at March 31, 2020, they had 2,141 installed beds, which grew to 2,467 installed beds as at June 30, 2022, representing a growth of 15.23%. Upon operation of its Noida hospital in Fiscal 2025, we expect the number of total installed beds to exceed 3,500 at the end of Fiscal 2025, which will cater to domestic and international patients as part of its strategy to capitalize on medical tourism.

Competitive Strengths:

  • Leading tertiary and quaternary care provider in India, well recognised for clinical expertise in particular in dealing with complicated cases.
  • Focus on Clinical Research and Academics.
  • Large-scale hospitals with world-class infrastructure, high-end medical equipment, and technology.
  • Focus on under-served areas with dense population and presence in top or capital cities of large states (NCR, Lucknow and Patna).
  • Experienced senior management team with strong institutional shareholder support.
  • Growth opportunities in existing facilities and diversification into new services, including digital health.

Objects of the Global Health Limited IPO:

A) The company proposes to utilize the net proceeds of the Fresh Issue towards funding of the following objects: (500 Cr) 1. Repayment/prepayment of borrowings, in full or part, of the Subsidiaries, GHPPL and MHPL. 2. General corporate purposes. B) OFS (1705 Cr)
RHP of Global Health Limited IPO

Global Health Limited IPO Details:

Open Date: Nov 03 2022
Close Date: Nov 07 2022
Total Shares: 65625000
Face Value: ₹ 2 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 2206 Cr.
Lot Size: 44 Shares
Issue Price: ₹ 319-336 Per Equity Share
Listing At: NSE,BSE
Listing Date: Nov 16 2022

Promoters And Management:

(i) Dr. Naresh Trehan is the Chairman and Managing Director of the Company. He was appointed on the Board on August 13, 2004. He has been the Chairman and Managing Director of the Company since June 1, 2007 and has been most recently re-appointed with effect from August 1, 2021. He is the Promoter and has also been appointed as the ‘Chairman - Heart Institute & ‘Chief Cardiac Surgeon’ for a period of five years with effect from August 1, 2021. He holds a bachelor’s degree in medicine and surgery from the Faculty of Medicine, University of Lucknow and has been awarded a certificate in specialty of thoracic and cardiac surgery by the American Board of Thoracic Surgery. He has served in the training programme and as the ‘Fellow in Thoracic Surgery’ at the New York University Medical Center at Bellevue Hospital, University Hospital and Mahattan V.A. Hospital, New York, USA. He is also an elected fellow of the American Society of Angiology and the Indian Association of Cardiovascular-thoracic Surgeons. He has been admitted to honorary fellowship of the Royal Australasian College of Surgeons in 2000. He has been awarded the academic title of ‘Honorary Professor’ of the National Scientific Research Medical Center Joint Stock Company, The Republic of Kazakhstan. He has been awarded the ‘Padma Bhushan’ in 2001 and the ‘Padma Shri’ in 1991 by the Government of India, and Dr. B.C. Roy Award by Medical Council of India in 2005. He has also been awarded a special award dated November 14, 2021 by the American Association of Cardiologists of Indian Origin for his outstanding contributions as ‘Indian Father of Cardiac Surgery’. (ii) Sunil Sachdeva is a Non-Executive Director of the Company. He was appointed on the Board on August 13, 2004. He holds a bachelor’s degree in science (non-medical) from Government College for Girls (previously known as Government College, Gurugram), Maharishi Dayanand University, Rohtak. He has experience in healthcare, infrastructure and finance. He currently serves as the managing director of Ramsons Projects Limited. (iii) Ravi Kant Jaipuria is a Non-Executive Nominee Director of the Company. He was appointed on the Board with effect from October 6, 2015. He has completed his higher secondary education from Delhi Public School Mathura Road, New Delhi, India. He has over 31 years of experience in conceptualizing, executing, developing and expanding food, beverages and dairy business in South Asia and Africa. He currently serves as the promoter, non-executive director and chairman at Varun Beverages Limited. He was awarded the ‘Distinguished Entrepreneurship Award’ at the PHD Chamber Annual Awards for Excellence in 2018.

Financials of Global Health Limited IPO:

Particulars (in crores) Mar-22 Mar 21 Mar-20
Revenue from operations 2166 1446 1500
Cost of Materials Consumed 508 340 324
Purchase of stock in trade 37 12
Change in Inventories -2 -5
Employee Benefit Expense 567 466 538
Impairment losses on financial assets 3 6 11
Other Expense 601 434 439
Operating Profit 452 193 188
OPM% 20.87% 13.35% 12.53%
Finance Cost 79 67 51
Depreciation 129 123 115
Other Income 39 31 43
Profit (Loss) before tax 280 32 63
Profit (Loss) for the period 196 28 36
 

Comparison With Peers:

Name of the Company Revenue PAT 3 Year Rev.Growth 3 Year PAT. Growth 3 year Stock Return Debt RONW Mcap P/E
Medanta 2200 196 20% 133% NA 837 13% 9000 46
Apollo 14,600 1100 14.18% 60% 76% 4000 20% 65000 74
Fortis 5700 800 11% 194% 35% 1250 13% 21000 51
Max Healthcare 3900 600 92% 220% 287% 900 9.50% 42000 65
Narayana 3700 342 9% 70% 42% 723 21% 16000 40
Note: 1. All figures are in Cr 2. Financials of FY22 is taken to calculate Revenue, PAT, Debt and RONW. 3. Mcap and P/E are calculated based on closing price of stocks as on 28.10.2022.

Recommendation on Global Health Limited IPO:

Review and Recommendation of Medanta IPO by IZ team is 5/10 1. Medanta is one of the largest private multi-speciality tertiary care providers operating in the North and East regions of India in terms of bed capacity and operating revenues. 2. Company has a network of six hospitals that are currently running under the "Medanta" brand name. These hospitals are located in Gurugram, Indore, Ranchi, Lucknow, and Patna. Noida is the only hospital in the network that is still in the building phase. 3. As at June 30, 2022, Medanta provide healthcare services in over 30 medical specialties and engage over 1,300 doctors led by experienced department heads and, spanning an area of 4.7 million sq. ft., operational hospitals have 2,467 installed beds. 4. Medanta was founded by Dr. Naresh Trehan, a world-renowned cardiovascular and cardiothoracic surgeon. He has been awarded the prestigious Padma Bhushan and the Padma Shri, the third and fourth-highest civilian awards in India, and the BC Roy award. 5. Revenue has grown from 1500 Crores in Fy20 to 2100 Crores in Fy22. 6. PAT has grown from 36 Crores in Fy20 to 200 Crores in Fy22. 7. The Vedanta IPO is coming at P/E of 46 and Mcap of 9000 Crores which seems to be look reasonably priced. 

Lead Manager of Global Health Limited IPO:

  1. Credit Suisse Securities (India) Private Limited
  2. Jefferies India Private Limited
  3. JM Financial Consultants Private Limited
  4. Kotak Mahindra Capital Company Limited

Registrar of Global Health Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Global Health Limited Medanta – Mediclinic, E-18, Defence Colony, New Delhi, Delhi 110 024, Phone: +91 124 483 4060 Email: compliance@medanta.org Website: https://www.medanta.org/

Discussion on Global Health Limited IPO:

3 Comments

Leave a Reply