Shares of Global Health (Medanta) shares list at premium. Buy, sell or hold?

The IPO comprised fresh issuance of shares worth up to ₹500 crore and an offer-for-sale of up to 5,07,61,000 equity shares. Ahead of the IPO, Global Health had mobilised ₹662 crore from anchor investors. Proceeds from the fresh issue will be used to pay debt and for general corporate purposes.

Founded by Naresh Trehan, a renowned cardiovascular and cardiothoracic surgeon, Global Health is a leading private multi-speciality tertiary care provider in north and east regions of India.

Global Health, backed by private equity investors such as Carlyle Group and Temasek, operates a network of five hospitals under ‘Medanta’ brand in Gurugram, Indore, Ranchi, Lucknow and Patna. In addition, one hospital is under construction in Noida.

On what next after Global Health share listing, Manoj Dalmia, Founder & Director at Proficient Equities said, “Global Health Limited is one of the largest private multi-specialty tertiary care providers, operating in the North and East regions of India. Posted growth over the years in its scale of operations. The issue is attractively priced based on its financial data. Cash rich investors can hold for long term periods.”

Parth Nyati, Founder at Tradingo said, “Global Health Ltd is one of the largest private multi-specialty tertiary care providers operating in the North and East regions of India and operating under the most popular healthcare brand, Medanta. The issuer has good patient volumes and cost efficiency, and its financial profile also shows an increasing trend. Nevertheless, the promoter shareholding would come down to 33% post-IPO, Finally, the issue is fairly priced at a P/E of 43 as compared to the average industry P/E of 51.93.”