Global Health (Medanta) IPO: Potential investors will be able to bid for Global Health shares in a price band of Rs 319-336 in multiples of 44 — which means they will have to shell out Rs 14,036-14,784 for each lot of Medanta shares.
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.
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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.