Global Health Limited, which operates and manages hospitals under the Medanta brand, said it has set a price band of ₹319-336 a share for its ₹2,206 crore initial public offering (IPO).
The initial share sale will open for public subscription during November 3-7. The bidding for anchor investors will open on November 2, according to the company.
The IPO consists of a fresh issue of equity shares aggregating to ₹500 crore and an offer for sale (OFS) of up to 5.08 crore equity shares.
As a part of the OFS, Anant Investments, an affiliate of private equity major Carlyle Group, and Sunil Sachdeva (jointly with Suman Sachdeva) will offload equity shares.
At present, Anant Investments holds a 25.64 per cent stake in Global Health and Sachdeva owns a 13.41 per cent stake in the company.
At the upper end of the price band, the company is expected to fetch ₹2,206 crore through the IPO. Proceeds from the fresh issue will be used to pay debt and for general corporate purposes.
Founded by Dr Naresh Trehan, a cardiovascular and cardiothoracic surgeon, Global Health is a leading private multi-speciality tertiary care provider in the north and eastern regions of India.
Global Health, backed by private equity investors like Carlyle Group and Temasek, operates a network of five hospitals under the Medanta brand in Gurugram, Indore, Ranchi, Lucknow and Patna. In addition, one hospital is under construction in Noida.
The company's total installed beds are expected to exceed 3,500 after Noida hospital commences operation in fiscal 2025.
As part of its growth strategies, the company intends to capitalise on medical tourism.
Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
Investors can bid for a minimum of 44 shares and in multiples thereof.
The company delivered a total income of ₹2,205.8 crore and a profit of ₹196.2 crore in FY22.
The Indian healthcare delivery industry is estimated to post a 13-15 per cent CAGR between FY21 and FY26, driven by pent-up demand, strong fundamentals, increasing affordability and Ayushman Bharat Yojana, according to a Crisil report.
Moreover, the country's bed density per 10,000 population is just 15 beds, which is below the global median of 29 beds.
Kotak Mahindra Capital Company, Credit Suisse Securities (India), Jefferies India and JM Financial are the book-running lead managers to the IPO.