Medanta hospitals owner files for IPO at India’s securities bourse

INDIA – Global Health Private Ltd, which operates and manages hospitals across India under the Medanta brand has launched an initial public offering with SEBI to raise money from the market.

The IPO consists of a new issue of equity shares worth US$ 6.73 million (Rs 500 crore) and an offer for sale of up to 48.44 million shares by the company’s promoters and shareholders — 43.34 million shares by Anant Investments and up to 5.1 million shares by Sunil Sachdev.

Global Health is one of North and East India’s largest private multi-specialty tertiary care providers, with key specialties in cardiology and cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopedics, liver transplant, and urology.

The Medicity, Gurugram, Medanta’s flagship hospital, has over 1,300 beds, including 246 critical care beds, making it India’s largest single-location hospital in the private sector.

The hospital network has a total operational capacity of approximately 2,000 beds. It employs over 1100 doctors and provides healthcare services in over 30 medical specialties.

Furthermore, Global Health Private Ltd. operates four Medanta multi-specialty hospitals in Gurugram, Lucknow, Indore, and Ranchi, as well as outpatient services in Patna, which began in 2020. It also operates three clinics in Delhi: at the Delhi Airport, in South Delhi, and in DLF Cybercity.

Global Health had outstanding borrowings of US$ 103.4 million (Rs.767.58 crore) as of June. The proceeds of the new issue will be used to pay off debt and for general corporate purposes.

In this regard, the company intends to use US$50.5 million (375 crore) of the proceeds to repay loans made by its subsidiaries Global Health Patliputra Pvt. Ltd and Medanta Holdings Pvt. Ltd through debt or equity infusion.

Carlyle Group and Temasek, both private equity investors, have significant minority stakes in the company, with 27 percent and 18 percent, respectively.

Carlyle joined the company in 2013, and Temasek invested in it in 2015. Trehan, his family, and Medanta co-founder Sunil Sachdeva own the remainder.

The Indian healthcare delivery industry is expected to grow at a healthy 15-17 percent Compound Annual Growth Rate (CAGR) between FY21 and FY25, thanks to pent-up demand, strong fundamentals, rising affordability, and the Ayushman Bharat Yojana insurance scheme.

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