Medanta Hospital Chain IPO date announced, issue will open next week

The initial share sale consists of a fresh issue of equity shares, totaling 500 crore and Offer for Sale (OFS) of 5.08 crore equity shares by the shareholders and promoters of the company.

The firm intends to use the proceeds from the proceeds to repay the loan by its arm Global Health Patliputra Pvt. Ltd. and Medanta Holdings Pvt. Ltd. by investing through debt or equity infusion.

Cardiovascular and cardiothoracic surgeon Dr Naresh Trehan founded Medanta in 2004. global health is a leading private multi-specialty tertiary care provider in the North and East regions of India.

Backed by private equity investors such as Carlyle Group and Temasek, Global Health operates a network of five hospitals under the ‘Medanta’ brand in Gurugram, Indore, Ranchi, Lucknow and Patna. Apart from this a hospital is under construction in Noida. The company had filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in October last year.

Private equity investors such as Carlyle Group through its partner, Anant Investments, and Temasek Holdings through its partner, Dunerne Investments Mauritius Pte Ltd, hold minority stakes—25.67% and 17%, respectively—in Global Health, while Trehan holds 35. % stake, Medanta co-founder Sunil Sachdeva 13.43%, RJ Corp Ltd 3.95% and Agio Image Ltd 1.97%.

Upon operations of its Noida hospital in the financial year 2025, the company’s total installed beds are expected to exceed 3,500. As part of its growth strategies, the company also intends to capitalize on medical tourism. The company reported total income of 2,206 crore and profit of 196 crore in FY22.

Kotal is the Book Running Lead Manager of Mahindra Capital Company, Credit Suisse Securities (India), Jefferies India and JM Financial Company. IPO, KFin Technologies Limited is the Registrar of Public Issues. The company’s shares are expected to be listed on the stock exchanges BSE and NSE on Wednesday, November 16, 2022.