Global Health IPO review by Anil Singhvi: Subscribe or avoid? Check recommendation here

Global Health IPO review: Initial public offering (IPO) of Global Health Limited, which operates hospitals under the Medanta brand, is now open for subscription. According to an exchange filing, the company has decided to allocate 1.97 crore equity shares at Rs 336 apiece, aggregating the transaction size to about Rs 662 crore.

Global Health IPO review by Anil Singhvi

Zee Business Managing Editor Anil Singhvi said that investors should subscribe to this IPO for long-term gains. 

"There are chances of some listing gains but considering the sentiments of Indian share markets and uncertainties in the global market. This is why one should focus on long-term gains. I usually suggest for short-term listing gains only when I see a clear upside of 20-25 per cent," Singhvi said.

#IPOAlert | आज से 7 नवंबर तक खुला रहेगा

ग्लोबल हेल्थ का IPO, प्राइस बैंड ₹319-336/शेयर

ग्लोबल हेल्थ कंपनी में क्या पॉजिटिव, कहां है जोखिम?

इश्यू में पैसा लगाएं या नहीं?

जानिए #GlobalHealthIPO पर @AnilSinghvi_ की राय@ZeeBusiness LIVEhttps://t.co/JHHJNpJz8y pic.twitter.com/7WJQcVWqAC

— Zee Business (@ZeeBusiness) November 3, 2022

Singhvi said that Global Health, backed by private equity investors such as Carlyle Group and Temasek, is known for providing the best health services. It operates a network of five hospitals under the 'Medanta' brand in Gurugram, Indore, Ranchi, Lucknow and Patna. In addition, one hospital is under construction in Noida. 

"Also, the financials of the company is very strong and the cash flow is positive. After this IPO, the company will be debt free. This is one of the sectors that has very strong growth prospects in the future. However, there are some negatives as well. One of them is the attrition rate of doctors is a bit high. It is 32 per cent for doctors and 50 per cent for staff," he added.

The Zee Business Managing Editor also said that the valuation of the company is reasonable so one can invest for long-term profits. 

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

Global Health IPO allotment date

The 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. The allotment date of the Global Health IPO is November 11.

Global Health IPO Listing date

Global Health IPO will list on both the leading exchanges BSE and NSE. Global Health IPO likely listing date is November 16.