Global Health, operator of the Medanta chain of hospitals, soared 19% on debut. The shares listed at Rs 398.15 on the BSE and Rs 401 on the NSE. The IPO was subscribed 9.58 times from 3-7 November. The premium listing comes after the IPO was subscribed 9.58 times during November 3-7. Retail investors bid for 88 percent of the allotted quota, and non-institutional investors bought their portion 4.02 times, while QIBs booked theirs 28.64 times.
Ravi Singhal, CEO at GCL Securities said that allottees can hold this stock for one-year target of Rs 515. “However, if someone missed to get Medanta shares during allotment process, they can buy this stock at around Rs 380 apiece levels maintaining stop loss at Rs 350. Allottees who have long term perspective may accumulate Medanta shares at Rs 380 levels maintaining strict stop loss at Rs 350.”
“Global Health has debuted at Rs 401 i.e. 19% over its issue price. With long-term structural factors supporting growth, renewed impetus from PMJAY, and the government’s focus shifting onto the healthcare sector, the healthcare delivery market is expected to grow at 13–15%. The issuer has good patient volumes and cost efficiency, and its financial profile also shows an increasing trend. Finally, the issue is fairly priced at a P/E of 43 as compared to the average industry P/E of 51.93. Those who applied for listing gains can maintain a stop loss of Rs 380,” said Parth Nyati, Founder at Tradingo.
Global Health is a hospital chain that operates under the brand ’Medanta’. The hospital chain is widely known for its multi-specialty care in the North and Eastern regions of India. At the upper price band of Rs 336, the IPO was offered at a PE of 45.9 times FY22 on a post-issue basis. The Rs 2,205 crore IPO included a fresh issue of only Rs 500 crore, while the rest was an offer for sale (OFS) by existing investors.
Global Health recorded a 50% growth in revenue from operations in FY22 and 27% growth in the first quarter of FY23 from a year ago, led by an increase in patient volumes, bed occupancy, and higher average revenue per occupied bed. Consolidated profit grew almost sevenfold to Rs 196.2 crore in FY22 and 40% to Rs 58.7 crore in Q1 of FY23. On the operating front, its EBITDA (earnings before interest, tax, depreciation and amortisation) grew at around 55% CAGR during FY20-FY22, and margin expanded to 21% in FY22, from 12 percent in FY20, aided by better operational efficiencies.