The GPT Healthcare initial public offering (IPO) has garnered significant interest from investors, with a subscription of 37% on the first day and 85% by the end of the second day. The Kolkata-based company aims to raise Rs 525.14 crore through the IPO, offering shares in the price range of Rs 177-186 per share. The subscription data reveals that investors bid for 2.32 times the offered shares by Monday afternoon.


GPT Healthcare, established in 1989, operates under the ILS Hospitals brand, managing mid-sized, multi-specialty hospitals in Eastern India. With hospitals in Kolkata, Howrah, and Agartala, the company focuses on secondary and tertiary care services. The IPO includes a fresh share sale of Rs 40 crore and an offer-for-sale of up to 2.60 crore equity shares by BanyanTree Growth Capital II.





As of Monday afternoon, non-institutional investors subscribed 3.32 times, retail investors 1.84 times, and qualified institutional bidders (QIBs) 2.46 times. The grey market premium (GMP) for GPT Healthcare faced a decline, currently standing at Rs 7-10 compared to the earlier high of Rs 19.


Despite varied opinions, analysts generally recommend subscribing to the IPO for the long term, citing GPT Healthcare's strong position in the Eastern market, robust operational performance, and sound financials. Some concerns raised include rich valuations, revenue concentration, lower bed occupancy, and attrition of healthcare professionals.




The company's expansion plans in Raipur and Ranchi are expected to drive long-term growth, increasing bed capacity from 561 to 853 by September 2026. GPT Healthcare aims to become debt-free post a Rs 30 crore reduction in overall borrowings through fresh issues.


Ahead of the IPO, the company allocated 84,69,996 equity shares to anchor investors at Rs 186 each, raising Rs 157.54 crore. The IPO is divided with 50% reserved for QIBs, 15% for non-institutional investors, and 35% for retail investors.


The IPO's asking price at the upper band represents a P/E of 31.7 times FY24 earnings. While some express caution, others believe the company is fairly priced, emphasizing its commitment to strengthening existing hospitals and expanding services.


JM Financial serves as the book running lead manager for the IPO, with Link Intime India as the registrar. The shares are expected to be listed on both BSE and NSE with a tentative listing date of February 29. Investors are reminded to conduct thorough research or consult financial advisors before making investment decisions.


GPT Healthcare IPO Review

GPT Healthcare's upcoming Initial Public Offering (IPO) has garnered attention from brokerage firms, with varying perspectives on the company's prospects.


Swastika Investmart Ltd. highlights GPT Healthcare as a prominent regional healthcare provider in Eastern India, boasting numerous hospitals and beds, covering over 35 specializations. Operating in three locations, the company has strategically targeted the relatively untapped healthcare sector. However, challenges such as low occupancy rates and competition from other service providers exist. The brokerage suggests that, at a PE valuation of 38.1x, the issue appears fairly priced. Nevertheless, investors are advised to assess their risk tolerance and conduct thorough due diligence before making investment decisions.


Mehta Equities Ltd. views GPT Healthcare as an opportunity for investors to engage with a well-known, regionally specialized healthcare provider in Eastern India. The brokerage supports the company's strategic focus on the healthcare sector in densely populated areas, noting robust business and service growth. While the company's profit after taxes experienced a slight decrease of -6.37%, operations revenue saw a modest 7% increase. The issue seeks a market capitalization of Rs. 1526/-cr at the upper band of Rs. 186/-, with a P/E ratio of 32.5x based on fully diluted post-IPO paid-up capital and annualized FY 2024 profits. Mehta Equities recommends investors to "SUBSCRIBE" with a long-term perspective, acknowledging the company's healthy regional presence and strategic positioning in underserved healthcare markets. However, they caution conservative investors to observe the market post-listing, especially considering the 100% Offer for Sale (OFS) component.


In summary, while both brokerages recognize GPT Healthcare's regional prominence and strategic positioning, they differ in their assessment of the IPO. Swastika Investmart emphasizes the need for careful evaluation and due diligence, given the PE valuation, while Mehta Equities sees the IPO as a long-term opportunity, suggesting a "SUBSCRIBE" stance with a cautious note for conservative investors post-listing. Investors are advised to consider these perspectives and conduct their own analysis before participating in the IPO.