Medanta Hospital Chain IPO opens next week

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The initial public offering (IPO) of Global Health Limited, which owns, manages, and operates hospitals under the brand name Medanta, will begin accepting public subscriptions the following week on Thursday, November 3, 2022, and will continue through the following Monday, November 7, 2022. The offering will last for three days.

The initial share sale would consist of a fresh issue of equity shares with a total value of 500 crore, as well as an offer for sale (OFS) of up to 5.08 crore equity shares by the company’s existing shareholders and promoters.

The company aims to use the funds from the proceeds to repay loans that were provided by its subsidiary Global Health Patliputra Pvt. Ltd and Medanta Holdings Pvt. Ltd by investing either through the infusion of debt or equity.

In 2004, cardiovascular and cardiothoracic surgeon Dr. Naresh Trehan established the medical practise known as Medanta. The North and East regions of India are served by Global Health, which is recognised as a major private multi-specialty tertiary care provider.

A network of hospitals known collectively as ‘Medanta’ is run by Global Health in the cities of Gurugram, Indore, Ranchi, Lucknow, and Patna. The company receives financial backing from private equity investors such as the Carlyle Group and Temasek. In addition, the building of a hospital can currently be seen in the city of Noida. In October of the previous year, the company submitted a draught red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi).

In Global Health, minority stakes are held by private equity investors such as Carlyle Group through its affiliate, Anant Investments, and Temasek Holdings via its affiliate, Dunearn Investments Mauritius Pte Ltd. Trehan has a 35% stake in the company, while Medanta co-founder Sunil Sachdeva has 13.43%, RJ Corp Ltd has 3.95%, and Agio Image Ltd has 1.97%.

It is anticipated that once the company’s Noida hospital begins operations in the fiscal year 2025, the total number of installed beds would top 3,500. The organisation also hopes to capitalise on medical tourism as part of its expansion initiatives and plans to do so in the near future. During the fiscal year ending in FY22, the company recorded a total income of 2,206 crore and a profit of 196 crore.

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