- The IPO consists of a fresh issue of ₹500 crore and an offer for sale of up to ₹1,705 crore through selling 5.08 crore equity shares by the company's shareholders and promoters.
- The price band of the IPO is set at ₹319-336 a share.
- The proceeds from the IPO will be utilised towards investment in subsidiaries -- Global Health Patliputra and Medanta Holdings in the form of debt or equity for payment of debt.
The total issue size of the IPO is ₹2,205 crore which includes fresh issue of ₹500 crore; and an offer for sale of up to ₹1,705 crore via sale of 5.08 crore equity shares by the company's shareholders and promoters.
The price band of the IPO is set at ₹319-336 a share.
The proceeds from the IPO will be utilised towards investment in two of its subsidiaries -- Global Health Patliputra and Medanta Holdings in the form of debt or equity, for payment of debt.
The company has key specialities in cardiology and cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopaedics, liver transplant, and kidney and urology. Global Health is backed by private equity investors such as Carlyle Group and Temasek.
It operates five hospitals under the Medanta brand in Gurugram, Indore, Ranchi, Lucknow and Patna. It has another hospital under construction at Noida.
While Covid-19 has impacted the health of the company, its profitability has turned around dramatically in the last two fiscal years.
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“Further, as a result of the detection of new strains, evolving variants such as the ‘Omicron variant’ and subsequent waves of Covid-19 infections throughout the world, we may be subject to further lockdowns or other restrictions in the subsequent years, which may adversely affect our business operations,” said the company in the red herring prospectus.
Another drawback concerning the firm is continuing losses by subsidiaries, which may impact the parent company.
“If these subsidiaries do not become profitable, and are not able to raise capital either through debt or equity, their operations may be affected and this will have an adverse effect on our company’s financial performance and results of operations,” said the company in the draft filing.
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