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Medanta Hospital eyes IPO this year; talks on to hire investment bankers, law firms

Medanta Hospital eyes IPO this year; talks on to hire investment bankers, law firms

Medanta is currently talking to law companies and investment bankers, and five investment bankers, including JM Financial and Kotak Securities, are in the last stages of appointment

Medanta chairman and MD Dr Naresh Trehan has, however, not come out with a statement on the issue so far Medanta chairman and MD Dr Naresh Trehan has, however, not come out with a statement on the issue so far

With initial public offering being the flavour of the season, Global Health Private Ltd, which manages Medanta hospitals, seems to have joined the long list of companies that are preparing to list on bourses this year.

The hospital chain is currently talking to law companies and investment bankers, Moneycontrol reported citing sources, adding that five investment bankers, including JM Financial and Kotak Securities, are in the last stages of appointment.

Medanta chairman and MD Dr Naresh Trehan has, however, not come out with a statement on the issue so far.

Medanta's flagship hospital in Gurugram, The Medicity, is one of the biggest single-location private sector hospitals in India, with a total capacity of 1,300 beds, including 246 critical care beds.

The hospital chain has four multi-super specialty hospitals in Gurugram, Ranchi, Lucknow, Indore, and has outpatient services in Patna. Medanta also has three clinics at Delhi Airport, South Delhi and DLF Cyber City.

Private equity investors such as Carlyle Group and Temasek hold minority stakes -- 27 per cent and 18 per cent, respectively -- in Global Health, while the rest of the stake (55 per cent) is held by Dr Trehan and his family members, and Medanta co-founder Sunil Sachdeva.

Manipal Hospitals was in active talks to acquire Naresh Trehan-owned Medanta Hospitals in 2019. Medanta's board had even accepted the binding offer of Rs 5,800 crore submitted by TPG and Temasek-backed Manipal Hospitals for the acquisition. However, talks didn't materialise into the buyout. Later, Manipal Hospital acquired Columbia Asia Hospitals.

In FY 20, Medanta had booked revenue of Rs 1,478 crore, while net profit stood at Rs 61 crore.

Also read: Zydus Cadila’s COVID-19 vaccine for 12-18 year olds to be available soon: Centre

IPO season in India

The strong rally on Indian bourses has set the stage for companies across sectors to raise capital through IPOs to take advantage of this opportune time. Eight companies raised Rs 12,720 crore through this route in the first two months of 2021, while Rs 43,800 crore was raised in the year 2020.

Just two days back, Zomato launched its biggest IPO of 2021 so far, which has been oversubscribed 10.7 times. Vijay Shekhar Sharma-led Paytm has also sought regulatory approval to raise up to $2.23 billion in one of the biggest stock market listings in India.

From Zomato, Paytm and PolicyBazaar to Byjus, OYO and LIC, the Indian market is set to witness a flurry of initial public offers (IPOs)  in 2021 as equity markets zoom on prospects of Covid-19 vaccines pulling the global economy out of recession.

Also read: Rs 5,800 cr Medanta-Manipal deal falls through as sides disagree over valuation