Global Health Ltd. has attained a green signal from the Securities and Exchange Board of India to go ahead with an Initial Public Offering to raise funds. Global Health Ltd. is a renowned name that operates hospitals under Medanta. In addition to Global Health Ltd., Veeda Clinical Research has also received a thumbs-up from the market regulator for the raising of funds through the Initial Public Offering. The preliminary IPO was filed by both these companies back in September, following which they received observations from the Securities and Exchange Board on the 21st of December. The observation letter in itself is a positive signal to go forward with the IPO.
The What and Why
After filing their preliminary IPO in September, both Global Health and Veeda Clinical Research has attained their observations from the market regulator. According to the draft papers, Global Health is all set to issue equity shares that round up to a whopping Rs.500 crore. In addition to this, they also have an offer of sale of up to 4,84 crore equity shares.
Anant Investments will carry out the sale of 4.33 crore equity shares and Sunil Sachdeva, the co-founder of Global Health will sell up to 51 lakh equity shares as a part of the offer for sale (OFS). Anant Investments is an affiliate of Carlyle Group, a private equity major. The funds raised through the issue of shares will be used to pay off debt and towards general corporate purposes. Veeda Clinical Research on the other hand is all set to issue fresh equity shares that amount to Rs.331.60 crore. The OFS of Rs.500 crore will be taken up by the shareholders and promoters of the company. The investors participating in the OFS are CX Alternative, Arabelle Financial Services, Bondway Investments Inc., Stevey International Corporation, Basil Private Limited. The proceeds from the issue will be used for paying off the debt of the company, and for funding capital expenditure. In addition to this, a portion of the proceeds will be used to fund the acquisition of Bioneeds India. A significant portion will also go towards working capital requirements in addition to general corporate purposes. 8
Global Health Ltd. was founded by Naresh Trehan and Sunil Sachdeva. Naresh Trehan has made quite a name for himself as a cardiovascular and cardiothoracic surgeon. Global Health has a reputed standing as a private multi-specialty care provider, particularly in north and east India.
