HealthCare Global launched its IPO on Dalal Street

Bangalore based cancer care network operator HealthCare Global Enterprises Ltd. (HCG) hit the capital market today to issue Rs 650 crores through its Initial Public Offering (IPO). The IPO comprises of fresh issue of 1.16 crore equity shares and an offer for sale of up to 1.82 crores equity shares by its existing shareholders. It has a fixed price band of Rs 205-218 for its IPO.

Ahead of its IPO, it has raised Rs 292 crores through the issuance of shares to 11 Anchor Investors (An Anchor Investor is the first investor in any round, that provides subsequent investors a degree of confidence) on Tuesday March 15. The company has allotted 1.34 crores shares at Rs 218 per share to Anchor Investors.

The proceeds of the issue will be used for purchase of medical equipments; investment in IT, software services and hardware; prepayment of debt of around Rs 147 crore and other general corporate purposes.

On a consolidated basis, HCG's revenue from operations for the six months ended September 30, 2015 and Fiscal Years 2015; 2014; and 2013 stands at Rs 2,854.29 million; Rs 5,193.75 million; Rs 4,513.34 million; and Rs 3,383.05 million, respectively. Company incurred a net loss amounting to Rs 7.49 million; earned a net profit amounting to Rs 5.46 million; and incurred net losses amounting to Rs 355.53 million, and Rs 105.14 million, respectively, for the six months ended September 30, 2015 and Fiscal Year 2014. On a consolidated basis, EBITDA before exceptional items for the six months ended September 30, 2015 and Fiscal Years 2015; 2014;and 2013 stands at Rs 436.93 million; Rs 810.55 million; Rs 422.16 million; and Rs 486.07 million, respectively. For the eight months ended November 30, 2015, company recorded revenue from operations amounting to Rs 3,788.87 million; net loss amounting to Rs 37.11 million; and EBITDA before exceptional items amounting to Rs 581.35 million.

The company filed its Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India (SEBI) in July last year and it got approval in November from the regulator. Kotak Mahindra Capital Company, Edelweiss Financial Services, Goldman Sachs (India) Securities, IDFC Securities, IIFL Holdings and Yes Bank are the book running lead managers to the issue.

HCG is the 4th company to hit Dalal Street for IPO issuance in 2016. Quick Heal Technologies, TeamLease Services and Precision Camshafts have already raised funds through IPOs so far this year. Moreover, Bharat Wire Ropes will launch its initial share sale plan on March 18; while that of online shopping portal Infibeam Incorporation will open on March 21.