engaluru-based Healthcare Global Enterprises Ltd (HCG), a cancer-care network operator, will launch its initial public offering (IPO) on March 16, hoping to mop up nearly Rs 650 crore.
The offering is fresh issue of 1.16 crore equity shares and an offer for sale of 1.82 crore equity shares in a price band between Rs 205 and Rs 218. Shareholders offering their stake as part of the IPO are Milestone Army Trust, Milestone Private Equity Fund, PI Opportunities Fund I and V-Sciences. The IPO will close for subscription on March 18. Kotak Mahindra Capital, Edelweiss Financial Services, Goldman Sachs (India) Securities, IDFC Securitie, IIFL Holdings and Yes Bank are the merchant bankers managing the IPO.
HCG plans to use the fresh capital to purchase medical equipment, pre-pay debt and invest in software and hardware, aside from general corporate purposes.
HCG is India’s leading provider of branded cancer care in terms of the total number of treatment centres that are licensed by the Atomic Energy Regulatory Board. As of December 31, 2015, the HCG network consisted of 14 comprehensive cancer centres.
HCG also provides clinical reference laboratory services in India with specialisation in oncology, including molecular diagnostic services and genomic testing, under the brand name Triesta.
A healthy choice ?
For investors, healthcare has been seen as a defensive bet, especially during volatile periods. Last year, Narayana Hrudayalaya, Alkem Laboratories and Dr Lal Pathlabs launched public issues in quick succession in December. And even as other newly-listed entities saw their prices dip post-IPO, the healthcare debutants are trading above offer prices.
HCG’s offering, aside from being in the same sector, is similar also in that existing shareholders are partially exiting to book profits. This, market players say, is a sign of maturity, reflecting confidence in the company.
Other healthcare players lining up offerings are VLCC Health Care and New Delhi Centre for Sight.
