Chandan Diagnostics, a trusted name in diagnostic services, is all set to launch its Initial Public Offering (IPO) under the name Chandan Healthcare. With its unwavering commitment to providing high-quality healthcare solutions, Chandan Healthcare operates more than 50 diagnostic centers and over 500 collection centers across Uttar Pradesh and Uttarakhand. The Chandan Healthcare IPO is a significant event in the diagnostic sector, and the company’s presence in the region only adds to its credibility.

The IPO is scheduled to open on February 10, 2025, and close on February 12, 2025, with an expected listing date of February 17, 2025. Here's a breakdown of all the essential details investors need to know before considering this investment.

Key Details:

• Price Band: ₹151 to ₹159 per share
• Market Capitalization: ₹388.78 crores at the upper price band
• Lot Size: 800 shares (retail investors must invest a minimum of ₹1,27,200)
• Fresh Issue: ₹70.78 crores (44.52 lakh shares)
• Offer for Sale (OFS): ₹36.56 crores (22.99 lakh shares)
• Subscription Period: February 10 to February 12, 2025
• Expected Listing Date: February 17, 2025
• Book Running Lead Manager: Unistone Capital Private Limited
• Registrar: KFin Technologies Limited
• Market Maker: R.K. Stockholding Private Limited

Financial Performance and Valuation

Chandan Healthcare has consistently improved its financial performance, with revenue growing from ₹11,991.58 Lakh in 2022 to ₹17,795.86 Lakh in 2023. The Profit After Tax (PAT) has also shown a marked increase, with the company posting a PAT of ₹1,741.99 Lakh for the year ending December 31, 2024.

Chandan Healthcare's valuation appears attractive, with the pre-issue P/E ratio of 19.53x, which is significantly lower than the industry P/E ratio of 75x. The post-issue P/E ratio of 23.89x is also within an acceptable range, indicating that the IPO is fairly priced for investors.

The company also demonstrates strong financial ratios, including an ROE of 47.50%, ROCE of 35.20%, and RoNW of 39.54%, further affirming its solid financial health.

Grey Market Premium (GMP) and Subscription Status

Currently, the Grey Market Premium (GMP) for Chandan Healthcare IPO is showing ₹23 or 14.46%. While the GMP is an unofficial indicator, it suggests listing gains for investors. However, it’s important to note that GMP can fluctuate and is not a definitive predictor of future performance.

IPO Allotment Status

For those who have applied to the Chandan Healthcare IPO, the allotment status will be available on February 13, 2025. Checking your allotment status is simple; here’s how:

1. Visit the IPO allotment status page.
2. Select Chandan Healthcare Limited IPO from the dropdown list.
3. Enter your application number, PAN, or DP Client ID.
4. Click Submit to check your allotment status.

Objectives of Chandan Healthcare IPO

Chandan Healthcare plans to utilize the proceeds of the IPO to fund the following projects:

1. ₹3,281.58 Lakhs for setting up a flagship diagnostic center in Jankipuram, Lucknow, Uttar Pradesh.
2. ₹710.23 Lakhs for a central reference laboratory in Ayodhya, Uttar Pradesh.
3. ₹710.11 Lakhs for another central reference laboratory in Ashiyana, Lucknow, Uttar Pradesh.
4. The remaining funds will be used for general corporate purposes.

Chandan Healthcare IPO Review

Chandan Healthcare’s IPO offers investors a chance to become part of a company with a robust business model in the growing healthcare sector. The company’s expansion plans in Lucknow and Ayodhya highlight its commitment to growing its footprint and enhancing service delivery.

While the GMP of 14.46% signals positive listing gains, we recommend this IPO for risk-tolerant investors seeking potential returns from listing gains. Chandan Healthcare’s consistent financial growth and solid metrics make it a promising choice for investors with a longer-term perspective.

The Upcoming IPOs in this week and coming weeks are PS Raj Steels, Chandan Healthcare, Ajax Engineering, Voler Car, Maxvolt Energy, Hexaware Technologies, L.K. Mehta, Shanmuga Hospital.

The Current active IPO are Eleganz Interiors, Readymix Construction, Solarium Green.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Join our Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.