Shanmuga Hospital Limited, a prominent healthcare provider in Tamil Nadu, has launched its Initial Public Offering (IPO) on February 13, 2025. The IPO aims to raise ₹20.62 crores through the issuance of 38,18,000 equity shares at a fixed price of ₹54 per share.
Company Overview
Established in 1981, Shanmuga Hospital has been serving the Salem district and surrounding regions with a wide range of medical services. The hospital is known for its advanced medical equipment and a team of experienced healthcare professionals, catering to various specialties and emergency care.
IPO Details
Issue Type: Fixed Price Issue
Issue Size: 38,18,000 equity shares, aggregating up to ₹20.62 crores
Face Value: ₹10 per equity share
Issue Price: ₹54 per equity share
Market Maker Reservation: 1,92,000 equity shares
Net Issue: 36,26,000 equity shares
Lot Size: 2,000 shares
Minimum Investment: ₹1,08,000 for retail investors
Listing Platform: BSE SME
Important Dates
IPO Opening Date: February 13, 2025
IPO Closing Date: February 17, 2025
Basis of Allotment Finalization: February 18, 2025
Initiation of Refunds: February 19, 2025
Credit of Shares to Demat Accounts: February 19, 2025
Listing Date: February 20, 2025
Financial Performance
As of March 2023, Shanmuga Hospital reported a revenue of ₹43.39 crores, reflecting a 9.84% increase from ₹39.50 crores in March 2022. The Profit After Tax (PAT) for the same period rose by 10.50%, from ₹4.76 crores to ₹5.26 crores.
Industry Outlook
The Indian healthcare sector is poised for significant growth, driven by increasing health awareness, rising income levels, and advancements in medical technology. Hospitals with a strong regional presence, like Shanmuga Hospital, are well-positioned to capitalize on this expanding market.
Subscription Status
By the third day of the IPO, Shanmuga Hospital's offering was subscribed 1.3 times, indicating a positive response from investors.
Grey Market Premium (GMP)
The Grey Market Premium for Shanmuga Hospital's shares stood at ₹3 on the third day of the IPO, suggesting a modest premium over the issue price.
How to Apply for the IPO
Investors can apply for the Shanmuga Hospital IPO through the following methods:
ASBA (Application Supported by Blocked Amount): Utilize your bank's net banking services to apply, ensuring that the application amount remains in your account until share allotment.
UPI (Unified Payments Interface): Apply via UPI through platforms like Zerodha, Groww, or Shoonya.
Offline Application: Submit a physical application form through registered stockbrokers.
To participate, ensure you have an active Demat account. If not, consider opening one with reputable brokers:
Investment Considerations
Strengths:
Established Reputation: Over four decades of trusted healthcare services in Tamil Nadu.
Financial Growth: Consistent increase in revenue and profits.
Expanding Healthcare Market: Benefiting from the growing demand for quality medical services.
Risks:
Regional Concentration: Operations primarily limited to Tamil Nadu.
Competitive Industry: Facing competition from other established healthcare providers.
Regulatory Changes: Potential impact from evolving healthcare regulations.
Conclusion
Shanmuga Hospital's IPO offers investors an opportunity to invest in a well-established regional healthcare provider with a track record of financial growth. While the company's prospects appear promising, potential investors should carefully assess the associated risks and consider their investment objectives.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Prospective investors should consult with a certified financial advisor before making investment decisions.
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