GPT Healthcare IPO fully subscribed: GMP, review to subscription status. Apply or not?

GPT Healthcare IPO: The initial public offering (IPO) of GPT Healthcare Limited hit the Indian primary market on 22nd February 2024 i.e. on Thursday last week. The public issue will remain open till 26th February 2024 i.e. investors have just one day in hand to apply for this public issue. The mid-sized multi-specialty hospital company has fixed the issue price at 177 to 186 per equity share. As per the GPT Healthcare IPO subscription status, the public issue has been subscribed 0.85 times in first two days of bidding.

Meanwhile, after two days of bidding, shares of GPT Healthcare Limited are available at a premium of 9 in the grey market today, say stock market observers.

As per the stock market observers, GPT Healthcare IPO GMP (grey market premium) today is 9, which is 4 lower from the weekend GMP. On Thursday, GPT Healthcare IPO GMP was zero. So, in three days, the grey market sentiments have improved regarding GPT Healthcare IPO. Market observers said that improvement in the grey market sentiment can be attributed to trend reversal on Dalal Street becuase the public issue has received dull response from the primary market investors in first two days of bidding.

By 10:54 AM on day 3 of bidding, the book build issue got subscribed 1.18 times while the retail portion of the public issue has been booked 1.57 times. The NII segment of the public issue has been booked 1.60 times whereas QIB portion got subscribed 0.19 times.

Leading brokerage firms like Reliance Securities, Nirmal Bang, Anand Rathi, Mehta Equities and SMIFS have given a “Subscribe” rating to GPT Healthcare Ltd, given its strong positioning in underserved and populous healthcare delivery markets. Company’s ‘Right-sized’, full service and strategically located hospitals have led to high return on capital. Its well diversified specialty mix, location mix and ability to attract, train and retain quality medical professionals are other key positives as per the brokerage firms.

Giving ‘subscribe’ tag to the public issue, Anand Rathi said, “GPT Healthcare operates a chain of mid-sized full-service hospitals under the same brand and provides integrated healthcare services, with a focus on secondary and tertiary care. Going ahead, the company intends to strengthen its existing hospitals by further balancing specialty mix, deepening its expertise in selective specialties and adding new specialties and services. At the upper price band company is valuing at P/E of 39.1x with a market cap of 15,262 million post issue of equity shares and return on net worth of 23.7% in FY23. On the valuation front, we believe that the company is fairly priced. Thus, we recommend an “Subscribe – Long Term” rating to the IPO.”

Advising investors to apply for the long-term, Mahesh M Ojha, AVP — Research & Business Development at Hensex Securities said, “GPT Healthcare key regional corporate healthcare company with a strong foothold in under-penetrated and densely populated healthcare delivery market, Well diversified specialty mix and location mix, Ability to attract, train and retain quality medical professionals, However, The healthcare delivery market in India is expected to grow at a CAGR of 9%-11% between Fiscal Years 2024 and 2028 and reach 9.2-9.3 trillion in Fiscal Year 2028. We suggest a ‘Subscribe’ to the issue with long term investment perspective.”

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 24 Feb 2024, 12:24 PM IST

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