Global Health (Medanta) IPO Oversubscribed 26%, Receives Good Response

The Initial Public Offering (IPO) of Global Health, which runs hospitals under the Medanta brand, received a good response with 26% subscription on Day 1 of the IPO.

The public issue that opened for public subscription on November 3, 2022 will conclude on Monday, November 7, 2022.

The Global Health IPO includes a fresh issue of up to Rs 500 crore and an offer for sale of up to 5,07,61,000 equity shares. The price band of the IPO is fixed at Rs 319-336 a share. The company said it has mobilised Rs 662 crore from anchor investors. At the upper end of the price band, the company is expected to garner Rs 2,206 crore through the IPO. Proceeds from the fresh issue are ear marked for payment of debt and general corporate purposes. Several brokerages have a "buy" call on the stock, including the likes of Geojit and Ashika Research.

According to Ashika Research, Medanta is continually looking for value-accretive opportunities while strengthening their presence in the key growth markets. The goal will be to carefully increase the bed capacity in existing facilities as well as consider utilizing the land available for ancillary services, while at the same time complement such expanded bed capacity with improved quality and efficiency of healthcare services, by providing cost-effective care through efficient, optimal utilization of processes, information, technology, research, innovation and other resources.

Choice Broking has assigned a subscribe call to the share sale. "At higher end of price band, Global Health is demanding an EV/Sales multiple of 4x, which is lower than the peer average. Thus the IPO is attractively priced. Considering the strong long term structural factors and the anticipated business growth of the company, we assign a 'SUBSCRIBE' rating for the issue," said Choice Broking. Most of the renowned brokerage firms have given a buy call to the IPO, given the strong brand value and under penetrated healthcare segment in India.