Naresh Trehan’s Medanta looks to launch IPO; talks with five investment bankers on

A general view of the Medanta Hospital in Gurugram

Global Health Private Ltd, which operates and manages hospitals across India under the Medanta brand, is planning to launch an initial public offering (IPO) soon.

Sources told Moneycontrol that talks with law firms and investment bankers for the IPO have started.

The company is in the last stage of appointing five investment bankers, including JM Financial and Kotak Securities.

An email to Dr Naresh Trehan, Chairman and Managing Director of Global Health, didn't elicit a response till the time of publishing this report.

Dr Trehan, one of the leading cardiac surgeons in the country, founded Medanta in 2004.

The flagship hospital of Medanta, The Medicity, Gurugram, has over 1,300 beds, including 246 critical care beds, making it India's largest single-location hospital in the private sector. The hospital chain has a total operational capacity of about 2,000 beds.

It has four Medanta multi-super speciality hospitals in Gurugram, Lucknow, Indore, and Ranchi, with outpatient services in Patna, which started in 2020. It also has three clinics at Delhi Airport, South Delhi, and DLF Cybercity.

The revenues for FY20 stood at Rs 1,478 crore, and profit after tax at Rs 61 crore.

PE investors exiting?

Private equity investors Carlyle Group and Temasek hold significant minority stakes in the company, at 27 percent and 18 percent, respectively. Carlyle came on board in 2013, and Temasek invested in the company in 2015. The rest is held by Trehan, his family and Medanta co-founder Sunil Sachdeva.

The PE investors are looking for an exit, and talks between Manipal Hospitals-TPG for a buyout of Medanta in 2019 didn't materialise. Medanta was said to have commanded an enterprise value of Rs 5,800-6,000 crore.

Manipal Hospitals later acquired Columbia Asia Hospitals.