The net proceeds from the issuance of 2,150,537 Equity Shares (worth Rs 40 cr) will be utilized to repay debt (Rs 30 cr) and rest of the funds (Rs 10 crs) have been kept for general corporate purpose.

GPT Healthcare, incorporated in 1989, is a regional healthcare provider located in Eastern India, operating a network of mid-sized full-service hospitals under the ILS brand with a focus on secondary and tertiary care. Based out of Kolkata, the company operates four multispecialty hospitals in Dum Dum, Salt Lake and Howrah in West Bengal and Agartala in Tripura with a total bed capacity of 561 beds, as of September 2023. The company offers an extensive range of healthcare services spanning more than 35 specialties and super specialties. As of September 2023, the Average Revenue per Occupied Bed (ARPOB) is Rs 32,979 while the bed occupancy rate stood at 60%.

• Strategically placed and strong foothold with 20 years of expertise in providing affordable healthcare services in densely populated areas of Eastern India, which has under penetration of organized hospital chains.
• Experienced management background with extensive expertise in the healthcare industry.
• Focused on expanding the company’s presence in adjacent markets of Eastern India with proposed expansion projects planned in Raipur and Ranchi. Additionally, the company is open to acquisitions in eastern parts of Guwahati, Jamshedpur, Varanasi, etc., for growth.
• Employee attrition is in the single digit, signaling the company’s ability to attract and retain its healthcare professionals.

The following points should be kept in mind:

GPT Healthcare, like any business, has its strengths and challenges. 

• On the operating metrics front, the ARPOB is lower for the company as compared to some of listed hospital players.
• Any delay in construction or initiation of operations of the proposed hospitals or failure to successfully expand into newer regions could affect the growth of business.
• The company derives over 70% of its revenue from the three hospitals located in West Bengal indicating sales concentration risk.
• Increasing competition within its focus markets of Eastern India, may pose a challenge.