Medanta Hospital’s IPO opens on November 3

The initial share sale of Global Health Limited, which operates and manages hospitals under the Medanta brand, will open for public subscription on November 3.

Medanta Hospital’s initial public offering (IPO) will conclude on November 7, according to the red herring prospectus (RHP).

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According to merchant banking sources cited by PTI, the IPO size of Medanta operator could be about ₹2,200 crore.

The Global Health IPO consists of a fresh issue of equity shares aggregating to ₹500 crore, and an Offer-For-Sale (OFS) of up to 5.08 crore equity shares.

“Up to 50,761,000 Equity Shares being offered for sale by the Selling Shareholders in the Offer for Sale, comprising up to 50,661,000 Equity Shares by the Investor Selling Shareholder and up to 100,000 Equity Shares by the Individual Selling Shareholders,” the company said in RHP.

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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% stake in Global Health and Sachdeva owns 13.41% stake in the company.

Proceeds from the fresh issue will be used to pay debt and general corporate purposes.

Founded by Dr. Naresh Trehan, a world-renowned cardiovascular and cardiothoracic surgeon, and under the Medanta brand, the company has a network of five hospitals currently in operation (Gurugram, Indore, Ranchi, Lucknow and Patna), and one hospital (Noida), which is under construction.

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Global Health is backed by private equity investors such as Carlyle Group and Temasek.

Upon operation of its Noida hospital in fiscal 2025, Global Health’s total installed beds are expected to exceed 3,500. As part of its growth strategies, the company also intends to capitalise on medical tourism.

The company reported a total income of ₹2,205.8 crore and a profit of ₹196.2 crore in FY22.

The Indian healthcare delivery industry is estimated to post a 13-15% CAGR between FY21 and FY26, driven by pent-up demand, strong fundamentals, increasing affordability and Ayushman Bharat Yojana, according to a Crisil report.

Moreover, the county’s bed density per 10,000 population is just 15 beds, which is below the global median of 29 beds.

Kotak Mahindra Capital Company, Credit Suisse Securities (India), Jefferies India and JM Financial are the book running lead managers to the Medanta Hospital IPO.

(With agency inputs)