Tag: Medanta

Global Health IPO secures 10 times subscription on final day — retail portion booked 88%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global Health’s IPO, to raise up to Rs 2,206 crore, concluded on Monday with a subscription of 9.6 times. By the end of the bidding process, the initial share sale of Global Health — the operator of Medanta hospitals — received bids for 44.8 crore share against the 4.7 crore shares on offer, according to provisional exchange data.

The subscription window for the IPO was open for three trading days, between 10 am and 5 pm. Global Health shares are likely to be listed on bourses BSE and NSE on November 16.

Potential investors could bid for Global Health (Medanta) shares in a price range of Rs 319-336 in multiples of 44 — which translates to Rs 14,036-14,784 per lot.

Out of the total IPO, 50 percent was reserved for qualified institutional buyers (QIBs), 15 percent for non-institutional investors — or high net worth individuals — and 35 percent for retail investors.

Reliance Securities had a ‘subscribe’ rating on the Global Health IPO, citing the company’s strong clinical expertise, presence in top cities of larges states, and focus on research, academics and underserved areas with dense population.

The company is valued at a price-to-earnings multiple of 46 times its earnings for the year ended March 2022.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Global Health IPO subscribed 26% on Day 1

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global Health’s IPO worth up to Rs 2,206 crore was subscribed 26 percent on Thursday, the first day of the bidding process. The initial share sale of Global Health — which operates the Medanta chain of hospitals — includes fresh issuance of shares worth up to Rs 500 crore, and an offer for sale (OFS) by existing shareholders.

By the end of the first day of bidding, the IPO received bids for 1.2 crore shares against the 4.7 crore shares on offer, according to provisional exchange data.

The IPO will be available for subscription for two more trading days between 10 am and 5 pm till Monday, November 7.

Potential investors will be able to bid for Global Health (Medanta) shares in a price range of Rs 319-336 in multiples of 44 — which translates to Rs 14,036-14,784 per lot.

Up to 50 percent of the issue is reserved for qualified institutional buyers (QIBs), at least 15 percent for non-institutional investors (or high net worth individuals) and 35 percent for retail investors.

Global Health shares are likely to be listed on bourses BSE and NSE on November 16.

Nirmal Bang suggests subscribing to the Global Health IPO from a long-term perspective.

“Medanta’s operational and financial performance has been strong and the company has weathered the challenge of pandemic… We believe Medanta is being offered at a reasonable valuation with a multiple of 19.9 times the earnings for the year ended March 2022 considering peer valuation,” the brokerage said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Medanta operator Global Health raises Rs 662 crore from anchor investors ahead of IPO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global Health Ltd, which operates hospitals under the Medanta brand, on Wednesday said it has mobilised Rs 662 crore from anchor investors ahead of its initial public offering (IPO) that opens for public subscription on Thursday.

The company has decided to allocate 1.97 crore equity shares at Rs 336 apiece, aggregating the transaction size to about Rs 662 crore, according to a circular uploaded on the BSE website.

Government of Singapore, Nomura, Axis Mutual Fund (MF), HDFC MF, Aditya Birla Sun Life MF, SBI MF, ICICI Prudential MF, Kotak MF, Max Life Insurance Company and SBI Life Insurance Company are among the anchor investors.

The IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore, and an offer for sale (OFS) of up to 5.08 crore equity shares.

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As 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.

The issue, with a price band of Rs 319-336 will open for public subscription during November 3-7. At the upper end of the price band, the company is expected to fetch Rs 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 renowned cardiovascular and cardiothoracic surgeon, Global Health is a leading private multi-specialty tertiary care provider in the north and east regions of India.

Global Health, backed by private equity investors such as 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.

Also Read: Global Health management says Temasek has no intention of exiting the company

Upon operation of its Noida hospital in Fiscal 2025, the company’s total installed beds are expected to exceed 3,500. As part of its growth strategies, the company also intends to capitalise on medical tourism.

Half of the issue size has been reserved for qualified institutional investors, 35 percent for retail investors and the remaining 15 percent for non-institutional investors. Investors can bid for a minimum of 44 shares and in multiples thereof.

The company delivered a total income of Rs 2,205.8 crore and a profit of Rs 196.2 crore in FY22.

The Indian healthcare delivery industry is estimated to post a 13-15 percent CAGR between FY21 and FY26 driven by pent-up demand, strong fundamentals, increasing affordability and Ayushman Bharat Yojana, according to a Crisil report.

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Moreover, the county’s bed density per 10,000 population is just 15 beds, which is below the global median of 29 beds.

Kotal Mahindra Capital Company, Credit Suisse Securities (India), Jefferies India and JM Financial are the book-running lead managers to the IPO.

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Global Health management says Temasek has no intention of exiting the company

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The management of Global Healthcare, the parent of hospital chain Medanta said that Temasek, a key institutional investor will not be exiting the company just yet.

Temasek currently holds 19 percent stake in Global Healthcare.

The IPO will open for subscription on November 3. Price band for the same has been fixed at Rs 319 – Rs 336 per share.

The initial share sale is a combination of fresh issuance worth up to Rs 500 crore and an offer for sale worth up to Rs 1,706 crore by existing shareholders.

Among the exiting shareholders include Carlyle, which holds around 20 percent stake in the company.

In an interview to CNBC-TV18, Medanta CEO Pankaj Sahni said the IPO will firm up the company’s balance sheet and set up the company for future growth.

Also Read: Global Health IPO to hit Street this week — here’s all you need to know

Sahni said that out of the Rs 500 crore that the company will raise, it will use Rs 375 crore to repay loans taken for their projects in Lucknow and Patna.

Bids for Global Health will be allowed in lots of 44 — which means investors will have to shell out Rs 14,036-14,784 for each lot.

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The company also aims to ramp up its bed capacity from 2,500 to over 3,500 by financial year 2025. The 2,500 beds are spread across its five hospitals that it operates. The upcoming sixth hospital in Noida will have 550 beds.

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Global Health IPO to hit Street this week — here’s all you need to know

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global Health — the operator of Medanta chain of hospitals — will launch an IPO to raise up to Rs 2,206 crore on Thursday, November 3. The initial share sale is a combination of fresh issuance worth up to Rs 500 crore and an offer for sale worth up to Rs 1,706 crore by existing shareholders.

Here are some of the important details to know about the Medanta IPO:

Important dates: Bidding will be available from 10 am to 5 pm for three trading days till November 7. Global Health shares are likely to be listed on stock exchanges BSE and NSE on November 16.

Bidding price: Potential investors will be able to bid for Global Health shares in a price range of Rs 319-336.

Lot size: Bids will be allowed in lots of 44 — which means investors will have to shell out Rs 14,036-14,784 for each lot.

Investor categories: Up to 50 percent of the issue is reserved for qualified institutional buyers, at least 15 percent for high net worth individuals and the remaining 35 percent for retail investors.

Financials: Global Health registered a net profit of Rs 196.2 crore for the year ended March 2022 — 6.8 times the net profit for the previous year, according to its red herring prospectus. Its revenue came in at Rs 2,166.6 crore, up
49.8 percent compared with the year-ago period.

Should you subscribe?

Choice Broking recommends subscribing to the Medanta IPO, which it believes is attractively priced.

At the upper end of the price band, Global Health is demanding an EV/sales multiple of four times, which is lower than its peer average, according to the brokerage.

Choice is positive on the company’s strong long-term structural factors and anticipated business growth.

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Four companies set to go public next week; seeks to raise over Rs 4,500 crore via IPO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The primary market is heading for a busy time, with four firms, including Global Health Ltd, which operates hospitals under the Medanta brand, and micro-finance lender Fusion Micro Finance Ltd, lining up their IPOs next week.

The other two companies whose IPOs are ready to open are DCX Systems, a manufacturer of cables and wire harness assemblies, and Bikaji Foods International.

Together, these four companies are expected to fetch over Rs 4,500 crore through the IPOs, according to merchant banking sources. Apart from these, Uniparts India and Five Star Business Finance are expected to come out with their respective IPO in November, they added.

The initial share sale of DCX Systems will open for public subscription on October 31 and conclude on November 2, while that of Fusion Micro Finance will be open during November 2-4. The IPOs of Global Health and Bikaji Foods will open for subscription on November 3 and close on November 7.

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In 2022 so far, as many as 22 companies have floated their IPOs to raise over Rs 44,000 crore. In 2021, 63 IPOs raised more than Rs 1.19 lakh crore, according to data from the exchanges.

“Volatility of the secondary market has led to a weak IPOs market in 2022 and it is expected to remain subdued going ahead,” Vinod Nair, head of research at Geojit Financial Services, said.

However, the response of investors to the offered IPOs was decent because of the opportunity to invest in new companies at attractive prices. This was also in the context of high liquidity available from HNI’s and retail investors looking for listing gain, he said.

In the majority, IPOs were also attractive for institutional investors to invest in high-quality new businesses bringing diversification to schemes, he added.

DCX Systems’ IPO comprises a fresh issue of equity shares worth Rs 400 crore and an offer for sale (OFS) of equity shares up to Rs 100 crore by promoters NCBG Holdings Inc and VNG Technology.

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The Bengaluru-based company has already raised Rs 225 crore from anchor investors. It has fixed a price band of Rs 197-207 per share for its issue.

Proceeds from the fresh issue will be used towards debt payment, funding working capital requirements, investment in its wholly-owned subsidiary Raneal Advanced Systems to fund its capital expenditure expenses and general corporate purposes.

Fusion Micro Finance is looking to raise Rs 1,104 crore from its IPO which comprises fresh issuance of equity shares worth Rs 600 crore and an offer of sale of 13,695,466 equity shares by promoters and existing shareholders.

Those selling shares in the OFS are — Devesh Sachdev, Mini Sachdev, Honey Rose Investment Ltd, Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society U.A and Global Financial Inclusion Fund.

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Net proceeds from the fresh issue will be used to augment the capital base of the microfinance firm. The company has set a price band of Rs 350-368 a share.

Global Health’s IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore, and an OFS of up to 5.08 crore equity shares by Anant Investments, an affiliate of private equity major Carlyle Group, and Sunil Sachdeva (jointly with Suman Sachdeva).

The IPO price band has been fixed at Rs 319-336 per share and at the upper end of the price band, the company is expected to fetch Rs 2,206 crore through the issue. Proceeds from the fresh issue will be used to pay debt and general corporate purposes.

Bikaji is aiming to mop up an estimated Rs 1,000 crore, through its initial share sale, merchant banking sources said. Certain shareholders of the Rajasthan-based company as well as its promoters — Shiv Ratan Agarwal and Deepak Agarwal– will offload around 2.94 crore shares through the OFS route.

The equity shares of the four companies will be listed on the BSE and NSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

DCX Systems’ IPO worth up to Rs 500 crore to hit Street soon — here’s all you need to know

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bengaluru-based DCX Systems —  a maker of cables and wire harness assemblies — is all set to roll out an IPO on Monday, October 31 to raise up to Rs 500 crore. The initial share sale, comprising fresh issuance of shares worth to Rs 400 crore and an offer for sale (OFS) of up to Rs 100 crore by existing shareholders, will be available for bidding for three trading days ending November 2.

Here are some important things to know about the DCX Systems IPO:

Important dates: The basis of allotment is likely to be finalised on November 7, and the listing of shares on bourses BSE and NSE on November 11.

Issue price: Potential investors will be able to bid for DCX Systems shares in a price band of Rs 197-207.

Lot size: Bidding of shares will be available in multiples of 72. That means bidding for one lot of shares will cost investors Rs 14,184-14,904.

Investor category: At least 75 percent of the IPO is reserved for qualified institutional investors, up to 15 percent for high net worth individuals and 10 percent for retail investors.

Promoters: NCBG Holdings and Vng Technology are the promoters.

Financials: DCX is a profitable company. It saw a net profit of Rs 65.6 crore for the year ended March 2022 with revenue of Rs 1,102.3 crore.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Samajwadi Party supremo Mulayam Singh Yadav dies at 82

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Samajwadi Party (SP) supremo Mulayam Singh Yadav died early on Monday after suffering from prolonged illness. He was 82.

SP chief Akhilesh Yadav confirmed the demise of his father Mulayam Singh, according to a tweet by the party.

मेरे आदरणीय पिता जी और सबके नेता जी नहीं रहे – श्री अखिलेश यादव

— Samajwadi Party (@samajwadiparty) October 10, 2022

The last rites of Mulayam Singh Yadav will be held in Saifai, his ancestral village in Uttar Pradesh. Defence Minister Rajnath Singh said he will attend the funeral which will be held on Tuesday.

Meanwhile, the Uttar Pradesh government announced three-day state mourning on the demise of the veteran politician. His last rites will be performed with full state honour, said Chief Minister Yogi Adityanath.

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#WATCH | Union Home Minister Amit Shah reaches Gurugram’s Medanta Hospital, where veteran politician Mulayam Singh Yadav took his last breath today. pic.twitter.com/Y7XpG6TJsb

— ANI (@ANI) October 10, 2022

Mulayam Singh was critical for a week and on lifesaving drugs in the Intensive Care Unit (ICU) of Medanta hospital in Gurugram. He was undergoing treatment for a kidney infection since August 22 and was shifted to the ICU on October 2.

Mulayam Singh’s political journey

Former Uttar Pradesh Chief Minister Mulayam Singh had a diverse career.  Born on November 22, 1939 into a farming family in Saifai near Etawah in Uttar Pradesh, Yadav spawned the state’s most prominent political clan.

Here’s a look at things to know about Samajwadi Party patriarch Mulayam Singh Yadav#MulayamSinghYadav #SamajwadiParty #India #Politics #UttarPradesh pic.twitter.com/0HegQbt957

— CNBC-TV18 (@CNBCTV18News) October 10, 2022

As a young man, Mulayam nursed ambitions of being a wrestler. He was elected an MLA 10 times and an MP, mostly from Mainpuri and Azamgarh, seven times. He also served as defence minister and chief minister of Uttar Pradesh thrice.

He became the chief minister of Uttar Pradesh in 1989. His first stint as the CM was short lived and  lasted till 1991. He finally separated from the Congress and founded the Samajwadi Party in 1992.

He served as the state’s chief minister two more times in 1993-95 and then in 2003-2007.

Mulayam Singh Yadav was also appointed as the defence minister of India in the HD Dewe Gowda-led United Front government in 1996. In 2012, when the Samajwadi Party gained a full majority for the first time since its inception in Uttar Pradesh, Mulayam chose his son Akhilesh to be the chief minister.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Medanta brand owner Global Health, Veeda Clinical get Sebi’s go-ahead to float IPOs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global Health Ltd, which operates and manages hospitals under the Medanta brand, and clinical research organisation Veeda Clinical Research has received markets regulator Sebi’s go-ahead to raise funds through an initial public offering (IPO).

These companies, which filed their preliminary IPO with Sebi in September, obtained its observations on December 21, an update with the regulator showed on Monday.

In Sebi parlance, the issuance of an observations letter implies its go-ahead for the IPO. Going by the draft papers, Global Health’s IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore, and an offer for sale of up to 4.84 crore equity shares.

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As part of the offer-for-sale (OFS), Anant Investments, an affiliate of private equity major Carlyle Group, will sell up to 4.33 crore equity shares and Global Health co-founder Sunil Sachdeva (jointly with Suman Sachdeva) will offload up to 51 lakh equity shares. The proceeds from the fresh issue will be used to pay debt and general corporate purposes.

Co-founded by Naresh Trehan, a renowned cardiovascular and cardiothoracic surgeon, Global Health is a leading private multi-speciality tertiary care providers in the north and east regions of India.

Veeda Clinical Research’s Rs 831-crore IPO consists of an issuance of fresh equity shares worth up to Rs 331.60 crore and an OFS of Rs 500 crore by promoters and existing shareholders.

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Investors participating in OFS include CX Alternative Investment Fund aggregating up to Rs 8.08 crore, Rs 90.19 crore by Arabelle Financial Services, Rs 259.77 crore by Bondway Investment Inc, Rs 0.04 crore by Stevey International Corporation and Rs 141.93 crore by Basil Private Ltd.

The company intends to utilise net proceeds from the fresh issue for repayment of the debt, funding capital expenditure, funding the further acquisition of subsidiary Bioneeds India, funding working capital requirements besides general corporate purposes.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Medanta brand-owner Global Health files IPO papers with Sebi

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global Health Limited, which operates and manages hospitals under the Medanta brand, has filed preliminary papers with capital market regulator Sebi to raise funds through an initial share-sale. The initial public offering (IPO) consists of a fresh issue of equity shares aggregating to Rs 500 crore, and an offer for sale of up to 4.84 crore equity shares, according to the draft red herring prospectus (DRHP).

As a part of the OFS, Anant Investments, an affiliate of private equity major Carlyle Group, will sell up to 4.33 crore equity shares and Global Health co-founder Sunil Sachdeva (jointly with Suman Sachdeva) will offload up to 51 lakh equity shares. At present, Anant Investments holds 25.67 percent stake in Global Health and Sachdeva owns 13.43 percent stake in the company.

Proceeds from the fresh issue will be used to pay debt and general corporate purposes. Kotak Mahindra Capital Company, Credit Suisse Securities (India), Jefferies India and JM Financial are the book running lead managers to the IPO.

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Founded by Naresh Trehan, a renowned cardiovascular and cardiothoracic surgeon, Global Health is a leading private multi-speciality tertiary care providers in the north and east regions of India. Global Health, backed by private equity investors such as Carlyle Group and Temasek, operates a network of 4 hospitals under the Medanta brand in Gurugram, Indore, Ranchi and Lucknow.

In addition, one hospital is under construction in Patna, and another is planned for development in Noida. The Indian healthcare delivery industry is estimated to post a healthy 15-17 percent CAGR between FY21 and FY25 driven by pent up demand, strong fundamentals, increasing affordability and Ayushman Bharat Yojana.

Moreover, the country’s bed density per 10,000 population is just 15 beds, which is below the global median of 29 beds.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow