The IPO consists of a fresh issue of Rs 500 crore
Carlyle to part-exit as Medanta hospital chain files for IPO Global Health, which operates and manages hospitals across India under the Medanta brand, has filed draft papers for an initial public offering which will see private equity investor Carlyle Group make a part-exit.
The IPO consists of a fresh issue of Rs 500 crore and an offer for sale (OFS) of up to 48.44 million shares by promoters and shareholders.The OFS comprises up to 43.34 million shares by Anant Investments and up to 5.1 million shares by Sunil Sachdev.
Private equity investors Carlyle Group and Temasek Holdings hold 25.67 per cent and 17 per cent, respectively, of Global Health, while Trehan has a 35 per cent stake, co-founder Sunil Sachdeva 13.43 per cent, RJ Corp 3.95 per cent and Agio Image 1.97 per cent. Kotak Mahindra Capital Co, Credit Suisse Securities India, Jefferies India and JM Financials are the book running lead managers to the issue. Medanta intends to utilise Rs 375 crore of the proceeds towards repayment of borrowings. As of June 2021, Global Health had outstanding borrowings of Rs 767.58 crore on a consolidated basis.
Medanta is a private multi-speciality tertiary care provider operating in the north and east regions of India, with key specialities of cardiology and cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopaedics, liver transplant, and kidney and urology.
As of March 2021, the firm provided services in over 30 medical specialities and engaged with over 1,100 doctors. Its operational hospitals have 2,176 installed beds. Patna and Noida hospitals are expected to commence operations during fiscal 2022 and 2025 and with this the firm expects the number of total installed beds to exceed 3,500. For the fiscal year 2021, consolidated total revenue stood at Rs 1,478.2 crore against Rs 1,544.3 crore a year ago. Net profit for the period was Rs 28.8 crore versus Rs 36.3 crore last year.
In 2019, TPG and Temasek-backed Manipal Hospitals were in talks to acquire Medanta whose board had even accepted the binding offer of Rs 5,800 crore. However, the talks did not materialise.
