New Delhi based Global Health is coming up with an IPO that would open for subscription on 3rd November, 2022. Company is one of the largest private multi-speciality tertiary care providers operating in the North and East regions of India. Should you invest in Global Health IPO? This article would provide IPO details, Dates, GMP, Listing Date and conclusion on whether this is good or bad for investment.
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About Global Health Limited
Global Health Ltd is one of the largest private multi-specialty tertiary care providers operating in the North and East regions of India.
Company has key specialties in cardiology and cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopedics, liver transplant, and kidney and urology.
It has a network of 4 hospitals currently in operation (Gurugram, Indore, Ranchi and Lucknow) under the “Medanta” brand. It has established “The Medanta Institutional Tissue Repository” in 2017 to promote biomarker and other tissue-based research.
Global Health IPO Details
| IPO Opening Date | 03-Nov-22 |
| IPO Closing Date | 07-Nov-22 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs 2 per equity share |
| IPO Price band | Rs 319 to Rs 336 per equity share |
| Lot Size | 44 Shares |
| Min Order Quantity | 44 Shares |
| Listing at | BSE and NSE |
| Total Issue Size | Rs. 2.205.5 Crores |
| Fresh issue | Rs. 500 Crores |
| OFS | Rs. 1.705.5 Crores |
What are the strengths of Global Health Limited?
1) Company is Tertiary and quaternary care provider in India, recognized for clinical expertise in particular in dealing with complicated cases
2) Company focus is on Clinical Research and Academics
3) Company has ‘Doctor-led’ hospitals driven by skilled and experienced doctors in the healthcare space
4) Company has Large-scale hospitals with sophisticated infrastructure, medical equipment and technology
5) It has a track record of operational and financial performance
6) Its focus is on under-served areas with dense population and presence in top or capital cities of large states (NCR, Lucknow and Patna)
7) It has experienced senior management team with institutional shareholder support
What are the Objects of the IPO Offer?
Global Health IPO Size is Rs 2,205.5 Crores which is has OFS and fresh issue
1) OFS for Rs 1,705.5 Crores – Under OFS, selling shareholders would sell their shares and the company would not get any money from this IPO proceeds.
2) Fresh issue of Rs 500 Crores – Company intends to use the fresh proceeds for the following:
- Repayment/prepayment of borrowings, in full or part, of the Subsidiaries, GHPPL and MHPL.
- General corporate purposes.
Who are the promoters of Global Health Limited?
Dr. Naresh Trehan is the promoter of the company.
How is the company financial track record?
Here are the total assets, revenues and profits of the company in the last 3 years and 3 months.
| Financial Year ending / Period ending (Amt in Crores) | ||||
| Particulars | FY20 | FY21 | FY22 | 30-Jun-22 |
|---|---|---|---|---|
| Total Assets | 2,666.3 | 2,694.1 | 3,145.5 | 3,221.9 |
| Revenues | 1,544.3 | 1,478.2 | 2,205.8 | 626.5 |
| Profit After Tax | 36.3 | 28.8 | 196.2 | 58.7 |
| Profit % | 2.35% | 1.95% | 8.89% | 9.37% |
Why to invest in Global Health IPO?
Here are the positive factors in this company.
1) Global Health Ltd is one of the largest private multi-speciality tertiary care providers operating in the North and East regions of India.
2) Company has strong revenue growth in the last 3 years.
4) Company margins have improved significantly during FY20 to FY22 and Q1 FY23 too.
Risk Factors of investing in Global Health IPO
1) Company IPO proceeds have OFS component also where the money would go to selling shareholders and company would not get anything.
2) Company was impacted with covid-19 spread and limitations on international and local travels. Such pandemics are uncertain and can impact in future too.
3) Company subsidiaries, MHPL and GHPPL, have incurred losses in the preceding fiscal and may incur losses in the future.
4) Company currently operates 5 hospitals and 6 multispecialty clinics and generate its revenues through these hospitals and clinics. Any loss of business from the operations from these hospitals/clinics can impact the business.
5) Investors should read complete risk factors indicated in the RHP of the IPO document before investing in this IPO.
Frequently Asked Questions (FAQs)
What is Global Health IPO date?
This IPO would open on 3rd November, 2022 and closes on 7th November, 2022.
What is Global Health Share Price?
The IPO share price band is Rs 319 to Rs 336 per share.
What is Global Health IPO Rating?
Company do not require to get an IPO rating as this issue is for equity shares. Currently, Global Health short term rating and long term rating is not available.
How much portion allocated to each group of investors in this IPO?
1) QIB – Not less than 50% of the offered shares
2) NII / HNI – Not less than 15% of the offered shares
3) Retail – Not less than 35% of the offered shares
Is it good or bad for investment?
An investor should always invest in a company that has strong financial track record. This company has generated strong revenue growth in the last 3 years and 3 months. Its margins improved significantly during the same period.
What is Global Health IPO GMP today?
GMP is nothing but the premium at which the shares are trading in offline market. This is just an indication about the IPO price as it is unorganized market.
Global Health GMP today as per market observers is between Rs 15 to Rs 20.
Global Health IPO GMP Chanakya – Nil
Global Health GMP as per IPOCentral – Rs 20
Global Health IPO GMP IPOWatch – Nil
Global Health IPO GMP IPO Bazar – Rs 15
IPO of Global Health Valuation
Global Health IPO price band is Rs 319 to 336 per share.
If we consider FY2022 EPS, the P/E ratio works out to be 43x.
If we consider last 3 years weighted EPS, the P/E ratio works out to be 75x.
If we annualize Q1 FY23 EPS, the P/E ratio works out to be 36x.
Means company is asking for the issue price in P/E of 36x to 75x. There are listed peers like Max Healthcare trading at P/E 68x (Highest) and Fortis Healthcare trading at P/E 36x (Lowest) and industry average P/E is 52x. Hence Global Health IPO share price is fully priced.
Global Health dates – subscription, Allotment and Listing
| Offer Open | 03-Nov-22 |
| Offer close | 07-Nov-22 |
| Finalization of Allotment | 11-Nov-22 |
| Initiation of Refunds | 14-Nov-22 |
| Credit to Demat Account | 15-Nov-22 |
| IPO Shares Listing Date | 16-Nov-22 |
How to buy Global Health IPO online through Zerodha?
If you do not have Zerodha account, sign-up here and proceed to the next step.
If you have a demat account with Zerodha, you can apply this IPO online using the UPI as a payment gateway. Zerodha customers can apply in this IPO by login into Zerodha Console submitting an IPO application form.
Follow below steps to apply this IPO in Zerodha platform:
1) Visit the Zerodha portal and login to the console.
2) Go to Portfolio and click the IPOs link.
3) Visit ‘Global Health Limited IPO’ row and click the ‘Bid’ button.
4) Enter your UPI ID, Qty and the Price which you want to bid.
5) Click on ‘Submit’ IPO application form.
6) Visit the UPI App (net banking or BHIM) to approve the mandate.
Also Read: Should you exit Axis Mutual Funds?
Global Health IPO Review – Should you invest or avoid?
After going through all these points, you might be wondering whether Global Health IPO is good or bad for investment?
Global Health Limited is one of the largest private multi-specialty tertiary care providers operating in the North and East regions of India. It has generated strong revenue growth in the last 3 years. Its margins improved significantly during the same period.
On the other side, the issue price is fully priced and I would have been excited if such IPO price would be have little lower side.
Investors can invest in this IPO for a medium to long term.
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