Healthcare Global Enterprises (HCG), leading provider of cancer care from Bengaluru, is entering capital market with initial public offer (IPO) of 2.98 crore equity shares of Rs.10 each with a price band of Rs.205-218 per equity share on March 16, 2016. The issue consist of fresh issue up to 11.6 million equity shares and offer for sale of up to 18.2 million equity shares. The offer is being made through the Book Building process wherein at least 75 per cent of the offer will be allotted on a proportionate basis to qualified institutional buyers (QIBs).
The company proposes to utilize the net proceeds of the fresh issue towards purchase of medical equipment, investment in IT software, services and hardware, and pre-payment of debt. Kotak Mahindra Capital Company Ltd, Edelweiss Financial Services Ltd, Goldman Sachs (India) Securities Pvt Ltd, IDFC Securities Ltd, IIFL Holdings Ltd and Yes Bank Ltd are the Book Running lead managers while Karvy Computershare Pvt Ltd is the Registrar to offer.
HCG operates 14 cancer care centres in India which are licensed by the Automic Eenergy Regulatory Board (AETB). Further, its four fertility centres are operated under the brand name 'Milann'. The company is investing Rs.42.21 crore towards purchase of medical equipment, Rs.30.19 crore towards investment in IT software, services and hardware and Rs.147.05 crore towards pre-payment of debt. As at the end of December 2015, its total borrowings stood at Rs.369.75 crore.
The company's consolidated income for the year ended March 2015 increased by 15.1 per cent to Rs.519 crore from Rs.451 crore in the previous year. It turned the corner and earned a small net profit of Rs.0.55 crore as against a net loss of Rs.35.55 crore in the 2013-14.
The company is now planning to expand existing network of cancer centres and fertility centres and strengthen its brand. The company is setting up additional 12 new comprehensive cancer centres in India. It is also setting up speciality cancer centres in Africa. It entered into definitive agreement with CDC, pursuant to which CDC will invest in its subsidiary, HCG Africa. In the first phase of the development, it is planning to established comprehensive cancer centres in Kenya, Tanzania and Ugada. Further, the company is in process of setting up three fertility centres in India.