Metro Group of Hospitals, a prominent hospital chain based in north India, is preparing for an initial public offering (IPO) to raise between Rs 800 crore and Rs 1,000 crore, people aware of the plan have told Moneycontrol.
The IPO would be the latest in a string of such public offers in the Indian healthcare sector in recent years, reflecting investor confidence in the industry's growth prospects.
The proceeds are expected to fund new hospitals and expand the company’s existing facilities, the sources said.
The company is likely to file its draft red herring prospectus with the markets regulator in the next two or three months, he added.
Founded in 1997 by Dr Purshotam Lal, Metro has grown into a network of multi-specialty hospitals across India, offering services in cardiology, oncology, nephrology, and other specialties.
The group has a significant presence in the National Capital Region (NCR) and other parts of north India such as Meerut and Jaipur. It also has a hospital in Oman.
The group has a network of nine multi-speciality hospitals with a capacity of more than 1,700 beds.
In recent years, several healthcare firms have listed on bourses.
Eye care chain Dr Agarwal's Eye Hospital raised Rs 3,027 crore in its public debut in January this year.
Other major IPOs from the healthcare sector in recent years include that of Global Health Ltd, the Medanta hospital chain operator, which raised Rs 2,205 crore in November 2022. Krishna Institute of Medical Sciences which raised Rs 2,143 crore in in 2021.
Several smaller hospitals such as GPT Healthcare, Jupiter Life Line and Yatharth Hospital and Trauma Care, too, have gone public in recent years. Another north Indian hospital chain, Paras Healthcare, has filed IPO papers for a public offering.
Metro Group of Hospital and founder Dr Lal are yet to respond to Moneycontrol’s queries.
Metro hospital financials
The company reported a revenue of Rs 1,375.38 crore in FY24, a jump of almost 46 percent over the previous year, a report by credit rating agency Care Ratings in September 2024 said.
The hospital chain’s profits shot up 85 percent to Rs 235.16 crore.
The topline has grown at a compounded annual growth rate (CAGR) of 22 percent over the three financial years ending FY24, the Care Ratings report said.
“The growth in the scale of operations was primarily driven by higher average revenue per occupied bed across hospitals in the group, which improved by approximately 30 percent in FY24, and improved occupancy rates in several hospitals operated by the group. Improvement in the group’s profitability was also supported by a higher number of surgeries performed in FY24,” the rating agency said.
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