Global Health Limited is entering the markets with an initial public issue (IPO) on Thursday, November 3. The issue consists of fresh shares worth Rs 500 crore and an offer-for-sale from The Carlyle Group of 50.66 million shares, constituting the whole of its 20% stake in the company. The price band of the offer has been fixed between Rs 319-336.
Global Health operates the Medanta brand of hospitals in Gurgaon, Lucknow, Patna, Indore and Ranchi. Addressing a news conference in Ahmedabad on Monday, Chairman & Managing Director Naresh Trehan said he had modelled the first Medanta hospital in Gurgaon on the Cleveland Clinic and John Hopkins in the USA, with the aim of providing high-end critical care in a range of specialisations. “I practiced in New York for 20 years and would see so many Indians flying to us for bypass heart surgery. But not everyone could afford that. I started the Escorts Heart Institute in Delhi to provide cardiac surgery that could compare with the best in the world. Medanta. which is a multi-speciality hospital, was the next logical step.”
Dr Trehan, who is a cardiovascular and cardiothoracic surgeon, said the first Medanta hospital was able to break even within 15 months of its opening in 2010 and was able to pay back all its loans within six years. Since then, the company has been on a geographical expansion spree, mostly in North and East India. The Medanta Hospital in Lucknow, started in 2020, has already broken even.The latest Medanta hospital is in Patna, which opened earlier this year, is yet to break even. Global Health now intends to utilize funds from the proceeds of the IPO to repay loans by its arm Global Health Patliputra Pvt. Ltd and Medanta Holdings Pvt. Ltd.
Addressing the news conference, Global Health CEO Pankaj Sahni said that Medanta hospitals have emerged as the hospital of last resort, when all others have failed. “We do very complex, high-end work and patients often come to us in a critical state. That is why we have such a high proportion of ICU beds. Our hospital in Indore, for example, has 175 beds, of which 50 are for the ICU, ” he said.
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