GPT Healthcare has promising prospects, but wait for listing to get clearer picture
Banyan Tree Growth Capital, GPT Healthcare operates multispecialty hospitals under the ILS brand in eastern India. The Kolkata-based healthcare company is rolling out a ₹525 crore IPO comprising an offer of sale of ₹485 crore and a fresh issue of ₹40 crore. The IPO represents 34% of the post-paid capital of the company.
Business: Set up in 2000 as an eight-bed hospital at Salt Lake in Kolkata by laparoscopic surgeon Dr Om Tantia, the company now operates four secondary and tertiary care hospitals in Dum Dum, Salt Lake and Howrah in West Bengal and Agartala in Tripura with a total capacity of 561 beds. Each of these hospitals provides integrated diagnostic services and pharmacies. It has signed MoUs for setting up hospitals in Raipur, Chhattisgarh, and Ranchi, Jharkhand that are likely to be operational in 2025-26. The management has plans to expand operations in other tier-II cities such as Varanasi, Patna, Guwahati, Kanpur and Cuttack. However, new hospitals have longer gestation periods to mature and provide returns.
Financials & Growth Prospects: The company's revenues have grown at a three-year compounded annual growth rate (CAGR) of 22% to ₹361 crore for FY23. The net profit has nearly doubled to ₹39 crore. The operating profit (Ebitda) margin has been over 21% during the last three years. For the six months ended September 2023, the company's average revenue per operating bed stood at ₹32,979 and the bed occupancy rate at 60%. The IPO will allow the company to cut down its debt and finance costs and improve
