Global Health Limited IPO opens for subscription on 3rd November and closes on 7th November. Let us look at the details of the IPO and the company.

Global Health Limited IPO Details

• Price band: Rs 319 - Rs 336
• Issue Size: Rs 2,205.57 crore (Rs 500 crore fresh issue and remaining OFS)
• Reservation: QIB 50%, Retail - 35%, NII 15%
• Minimum Investment: Investors need to make a minimum investment of Rs 14,784
• Bid lot: Investors can bid for 44 shares and in multiples of 44 shares

What does Global Health Limited (Medanta) do?

They are one of the largest private multi-specialty tertiary care providers operating in the East and North regions. Global Health has a network of 5 hospitals under the 'Medanta' brand. One hospital in Noida is under construction. Once this hospital is completed, they expect the number of total installed beds to exceed 3,500 at the end of FY25. 

The hospital at Gurugram was ranked as the best private hospital in India for three consecutive years (2020 to 2022).

How big are Global Health Limited hospitals?

Below are different hospitals under the Medanta brand and their sizes (bed capacity and doctors):

• The Medicity, Gurugram: It has a bed capacity of 1,391 beds and over 800 doctors.
• Medanta Lucknow Hospital: It has 93 ICU beds, 12 operating theatres, and 473 installed beds with a capacity to accommodate over 900 beds. It has employed over 200 doctors.
• Medanta Super Speciality Hospital, Indore: It has five operating theatres and 53 ICUs, 175 installed beds, and over 50 doctors.
• Medanta Abdur Razzaque Ansari Memorial Weavers’ Hospital, Ranchi: It has 200 beds and over 50 doctors.
• Jai Prabha Medanta Super Specialty Hospital, Patna: It has 228 installed beds, 28 ICU beds, and over 125 doctors.

How is the healthcare industry expected to perform?

The private healthcare sector accounts for the lion's share in India as public healthcare expenditure is low. As per CRISIL estimates, the Indian healthcare industry is expected to post a 13-15% CAGR between FY22 and FY26. The growth will be driven by strong fundamentals, long-term structural factors, and increasing affordability.

Who are the listed peers of Global Health Limited?

Medanta has many listed peers. The names include Apollo Hospitals Enterprises Ltd, Max Healthcare Institute, Fortis Healthcare, and Narayana Hrudayalaya. In terms of total income (FY22), Global Health is the smallest player.

Global Health Limited: Financial numbers

• For FY20, FY21, and FY22, the company reported revenue from operations of Rs 1500.42 crore, Rs 1446.74 crore, and Rs 2166.59 crore, respectively. It translates to revenue growth of 20.19%.
• EBITDA for the same period was Rs 230.45 crore, Rs 222.85 crore, and Rs 489.76 crore, respectively.
• The average RoNW and EPS for the last three financial years are 5.64% and 3.45, respectively.
• The company has Debt to Equity ratio of 0.50 (FY22).

 What are Medanta's strengths?

The company has listed its strengths in the RHP. Some of its strengths are:

• Medanta focuses on quality tertiary and quaternary care. It works on a high number of critical and complex cases.
• It is focused on clinical research and academic and established "The Medanta Institutional Tissue Repository" in 2017 to promote biomarker and tissue-based research.
• They have large-scale hospitals with sophisticated infrastructure, medical equipment, and technology.
• Medanta is focused on under-served areas with dense populations and a presence in the capital cities of large states.

What are Global Health Limited's plans for growth and expansion?

• They will continue to invest in bed capacity expansion in existing facilities, employ new technology, develop super-specialties, and focus on preventive healthcare.
• Medanta will continue to attract, engage, and train prominent, skilled doctors and other healthcare professionals.
• It will enhance its clinical capabilities and improve operating efficiencies.
• They plan to leverage technology to improve the patient experience and grow digital health services.

What are the risks associated with Medanta's business?

In RHP, Global Health has highlighted the risk associated with its business. Some of the risks from RHP are listed below:

• They have two loss-making subsidiaries.
• All of its revenue comes from five hospitals, and if for any reason, the operation at any hospital is stopped, it will impact the company's financials.
• They are highly dependent on doctors, nurses, and other healthcare professionals. Their business will be significantly impacted if they are unable to retain such professionals.
• Its under-construction facilities may experience construction delays, in reaching full operational capacity, and may not achieve the synergies and other benefits they expect from such facilities.

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