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Alisha Chatterjee A-7


Narayana Hrudalaya is a healthcare company that was founded in the year 2000.It
is headquartered in Bengaluru and its CEO is Dr. Ashutosh Raghuvanshi. It has
networks of hospitals across India though the healthcare companys presence is
predominant in South and East India. What started off with just 225 operational
beds in one hospital I Bengaluru has expanded into a big network of 24 hospitals, 7
heart centres and primary care facilities in India and an international hospital in
Cayman Islands. The company is known for its high-quality and affordable
healthcare services, its highly skilled doctors and effective business model. The
company has been listed in the Fortune 500 Next Companies and Indias Top 500
Companies by Dun and Bradstreet in 2017.

AGENDA OF THE MEETING- Should IPO be released or not?

The company has plans of expanding its business by entering new markets,
especially in Western and Northern India. For that purpose it needs to raise capital.
The company has a good brand name in the market, therefore Initial Public Offering
as a method of raising capital shall be considered and discussed.

Well be discussing about whether our company should go for an IPO or not. Well
be going through the data of the company and previous IPOs of other companies in
the healthcare sector. We will identify risks and problems that can come if we raise
IPO. Then well be discussing about the positive aspects in which well identify the
benefits to the company and to the shareholders and also discuss if there can be any
other options.

The money raised can be used for expanding the company in different regions of the
country. We shall be discussing from all the perspectives and finally come to a
conclusion that whether the company should go for IPO or not.
Alisha Chatterjee A-7


On the basis of various points given, it can be inferred that the pros of going for an
IPO overweigh the cons. Therefore the company should go for Initial Public
Offering. The various reasons why it should go for an IPO are as follows:

Narayana Hrudalaya is a recognizable brand in the country. It is a reputable

brand name in South India. Therefore an IPO will attract good response from
the public.

The revenues of the company have grown by 2.86 times in the past five years
giving it a green signal to go for an IPO.

It holds a strong brand name and is known for its highly effective business
model which helps to uplift its image.

There is a guarantee on the amount invested by the organization as the past

records of 5 years reflect an increase in revenue by 30%.This financial
information encourages public to invest in the company.

Health sector is on the rise in the millennial sector, which gives Narayana
Hrudalaya a green signal to go for an IPO because this is one industry where
returns are mostly profitable.

Raising capital from other sources such as bank loans is not a feasible option
as the company needs it for expansion purpose and bank loans do not provide
the option of raising such a large amount of capital.

Getting listed with the help of IPO provides an edge over other competitors
as it increases the brand image and scope of the market.

Narayana Hrudalaya is known for being involved in various CSR activities

which help in creating a positive image of the organization, which would
result in a positive response for IPO.