Medanta operator Global Health raises Rs 662 crore from anchor investors ahead of IPO

Global Health Limited, which operates hospitals under the Medanta brand, on Wednesday said it has mobilised Rs 662 crore from anchor investors ahead of its initial public offering (IPO) that opens for public subscription on Thursday.

The company has decided to allocate 1.97 crore equity shares at Rs 336 apiece, aggregating the transaction size to about Rs 662 crore, according to a circular uploaded on BSE website.

Government of Singapore, Nomura, Axis Mutual Fund (MF), HDFC MF, Aditya Birla Sun Life MF, SBI MF, ICICI Prudential MF, Kotak MF, Max Life Insurance Company and SBI Life Insurance Company are among the anchor investors.

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.
As 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.

The issue, with a price band of Rs 319-336 will open for public subscription during November 3-7. At the upper end of the price band, the company is expected to fetch Rs 2,206 crore through the IPO.

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

Founded by Dr Naresh Trehan, a renowned cardiovascular and cardiothoracic surgeon, Global Health is a leading private multi-speciality tertiary care providers in the north and east regions of India.

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

Upon operation of its Noida hospital in Fiscal 2025, the company'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.

Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Investors can bid for a minimum of 44 shares and in multiples thereof.

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

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.

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

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