>IPO NOTE: GOODWILL HOSPITAL & RESEARCH CENTER LIMITED(GHRCL) - Issue opens: January 30, 2012 & Closes January 09, 2012

BACKGROUND
Goodwill Hospital & Research Centre Ltd was incorporated on June 26, 2000 and the construction of the hospital was commenced in 2002. The medical consultancy commends on small scale in 2004 and in-patient department started in 2005. In December 2007 the management of the company was taken over by the Ojjus Medicare Pvt Ltd. Subsequently, the new management revamped operations of the hospital by adding super specialty services in Neurology and Cardiology etc., adding bed capacity and installation of high-end medical equipments.


Presently, GHRCL is engaged in the business of running a multi-specialty hospital at Noida called Ojjus Medicare, with focus on areas such as Neurology and Neuro surgery, Cardiology and Cardiac Surgery and Orthopaedics. Other Healthcare Services offered include mother & child care, Oncology, Gynaecology, Nephrology, Dermatology, Dental and Eye Care etc. It has 220 beds, Surgical ICU and Medical ICU, four state-of-the-art Operation Theatres and state-of-the-art Imaging facility with automatic laboratory support. Also, it is on the panel of various Government and large organizations for treatment of their employees.


The GHRCL has installed “Perfexion” Gamma Knife machine for non-invasive treatment of brain tumors, vascular malformations and functional diseases like Parkinson’s disease, trigeminal neuralgia and psychiatric disorders using highly précised focused gamma rays. The Hospital is amongst a few private centres in South and South East Asia to install Perfexion Gamma rays.


OBJECTIVES OF THE ISSUE
Goodwill Hospital and Research Centre Ltd plans to raise INR 620 Mln through this issue. The utilization of the funds would be as follows:

The company offers to issue warrants with every share offered which will be converted within 13 months into equity share at a 20% discount to the price prevailing at that time.

INVESTMENT ARGUMENTS

■ Robust Industry Growth:

The Health Industry is emerging to be the largest service sector industry in India with estimated revenues of USD 35 Bln and constituting approximately 5.2% of the GDP. It is expected to grow at 15% per annum to reach USD 78.6 Bln by 2012. Over 40 Mln new jobs and USD 200 Bln increased revenues are expected to be generated by the Indian Healthcare Sector by 2020. Seeing this growth we believe that GHCL is well poised to benefit in the future.

■ Experienced Team of Skilled Doctors:
The success of a hospital significantly depends upon ability to attract, develop and retain highly skilled doctors, nurses and other personnel at the hospital. GHRCL has a team of 32 full time doctors highly qualified and have received advanced training at leading hospitals in India and overseas complemented by 72 nurses and 46 other medical personnel. It has prominent specialists in various fields of medical sciences as consultants on its panel. The team is also dedicated to Clinical Research and has published studies on topics including neurology and neuro-surgery cardiology, cardiac surgery etc.


■ Quality Patient Care:
GHRCL has been designed to offer quality care to the patients. The layouts at the facilities provide for a patient friendly environment, and include attractive architecture and design features, the use of special lighting and color, and the reduction of “hospital odors” enhance the patient experience. The management has upgraded the hospital as per the standards prescribed by NABH and NABL and applied for NABL and NABH accreditation. The Hospital is also empanelled with CGHS with effect from May 04, 2011.


■ Specialty focus:
The focus of the GHRCL is on highly specialized areas such as neurology along with Cardiology and Cardiac Surgery, Orthopaedics, urology, nephrology and critical care. The Hospital has installed “Perfexion” Gamma Knife Machine for the treatment of brain tumor. It is amongst the few hospitals in South and South East Asia to have this facility. The Company performed 435 Gamma Knife procedures, Neurosurgeries & Neuro Interventions, 335 Cardiac Surgeries & Cardiac Interventions and 979 Orthopedics, General Surgeries and Gynae procedures in FY 2010-11.


■ Riding on the successful business model to fuel future growth:
The company plans to replicate the growth achieved in the recent past that was possible due to super specialty services in Neurology and Cardiology etc., along with installation of high-end medical equipments. Part of the proceeds would be used for the setting up of a Diagnostic Centre at Faridabad along with the establishment of one polyclinic each in Muzaffarnagar, Bulandshahar, Meerut, Saharanpur, Hapur and Moradabad by FY 2012-13.


To read the full report: GHRCL
RISH TRADER