Global Health Limited IPO (Medanta): Click to know whether to Apply or not?

The Global Health Limited IPO is available for subscription for all investors interested in the stock market till 7th November 2022, and the price band is fixed at Rs 319-336 per share. This company is famous for its brand name ‘Medanta‘ which is a chain of Hospitals across India. This particular Medanta IPO comprises a fresh issue of equity shares of Rs 500 crore and an offer for sale (OFS) of 50,761,000 equity shares.

About Global Health Limited IPO (Medanta):

Global Health Ltd. (GHL) is one of the largest private multi-specialty tertiary care providers operating in the North and East regions of India in terms of bed capacity and operating revenues amongst the players that operate in the North and East regions of India. The Global group operates under the brand name ‘Medanta‘ which is having the key specialties of cardiology and cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopedics, liver transplant, and kidney and urology.

global health limited IPO (Medanta)

Medanta has five hospitals presently operating in Gurugram, Indore, Ranchi, Lucknow, and Patna, and one hospital in Noida is under construction. As per reports and data, Medanta has a team of around 1300 doctors with more than 25 specialties in their hospitals all over India.

Medanta Gurugram’s Achievements

  • Global Health Limited (GHL)/ Medanta’s Hospital at Gurugram is awarded as the best private hospital in India for three continuous years in 2020, 2021, and 2022.

  • Also, Medanta Gurugram was the only Indian private hospital that was included in the list of top 200 global hospitals in 2021 and was featured in the list of top 250 global hospitals in 2022 by Newsweek.
  • Medanta Gurugram was also listed in the world’s best-specialized hospitals for cardiology and neurology in 2022 and in the list of world’s best-specialized hospitals for cardiology in 2021 by Newsweek. I
  • It was awarded the ‘Best Multi-Speciality Hospital – National‘ at the ‘Economic Times Healthcare Awards 2021’ and ranked as the best multispecialty private hospital in North India by ‘The Week’ in 2021.
  • In addition, this hospital at Gurugram ranked as the best multi-specialty private hospital in North India and the second best private hospital in India as per “Best All India Multi Speciality Hospital Ranking 2022” by Outlook and NEB Research.

As of June 30, 2022, this chain of Hospitals has a growth of 15.23% in terms of installed bed capacity.

Financial performance of Medanta:

Before applying for the Initial Public Offering (IPO) of Medanta, we must look at the financial health of the group. As per the data available, the group has seen a consistent increase in Net assets and Net Worth while it has an inconsistent increase in profit and revenue. The Debt acquired by the group has also seen inconsistency but it is not decreasing by an large, which may be a cause of concern for investors.

Period Up to Total Asset Total Revenue Profit After Tax
Net Worth Debt
31/03/2021 2694.1 1478.16 28.8 1382.34 644.6
31/03/2022 3145.52 2205.82 196.2 1616.01 837.86
30-Jun-22 3221.94 626.54 58.71 1675.55 794.45

Why you should apply for Global Health IPO:

Taking a decision on whether to invest in an IPO or not largely depends on the possible future being forecasted by the investors. Whether any company is good or bad for investing totally depends on its past performance. So here in this section, we will discuss some competitive strengths of this company that may become reasons for you to invest in this IPO:

  • This Hospital chain is a leading tertiary and quaternary care provider in India, and it is well-recognized for its clinical expertise in dealing with the attached cases.
  • It is famous for its intensive focus on Clinical Research and Academics for better medical support to its patients.
  • This chain has Large-scale hospitals with top-notch infrastructure and is equipped with highly advanced medical instruments and accessories.
  • This group of hospitals has a great track record of strong operational and financial performance.
  • It has great growth opportunities for its investors because it is a forerunner among other peers in existing facilities and diversification.
  • The brand name ‘Medanta‘ needs no recognition now as it is already a superbrand on its own

Objects of this IPO

Objects of IPO in detail tell the investor about how the fund being raised by the company from this IPO will be utilized by that company. In this case, the company proposes to utilize the net proceeds of the Fresh Issue towards the funding of the following objects as per the data available in their DRHP:

  1. Repayment/prepayment of borrowings, in whole or part, of the Subsidiaries, GHPPL and MHPL.
  2. General corporate purposes.

Dividend Policy of the Company:

The company has not declared any dividends on equity shares to date in the past, and it paid a dividend of 0.00001% for the last three fiscals on CCPS. It may adopt a prudent dividend policy post-listing, based on its financial performance and future prospects.

Comparison of the company with its peers:

As per the offer document DRHP, this company GHL has shown Apollo Hospitals, Fortis Healthcare, Max Healthcare, and Narayan Hrudayalaya as their listed peers. And individually these peers are currently trading at a

Apollo Hospitals @ P/E ratio of 77.47, 00, 126.92, and 86.71 (as of October 28, 2022).

Max Healthcare @ P/E ratio of 126.92 and

Narayan Hrudayalaya @ P/E ratio of 86.71

Bottom Lines:

GHL is operating under the most popular healthcare brand “Medanta” and posted good growth over the past years. The IPO issue is priced in an attractive price range based on its financial data as compared with its listed peers. But, the company has also shown inconsistency in profit growth and its debt is also not decreasing mode, which may be taken as a point of attention. Overall, Investors may consider an investment with medium to long-term perspectives.

From where to get Info about Company

Global Health Limited
Medanta – Mediclinic,
E-18, Defence Colony,
New Delhi, Delhi 110 024,
Phone: +91 124 483 4060

IPO Registrar for this IPO

KFin Technologies Limited,

Phone: 04067162222, 04079611000

Leave a Comment