Chandan Healthcare Limited IPO opens for subscription from February 10, 2025, and will close on February 12, 2025. The IPO consists of a fresh issue of 44.52 Lakh shares worth ₹70.78 Crores and an offer for sale of 22.99 Lakh shares totaling ₹36.56 Crores. The shares will be listed on the NSE SME, with the tentative listing date set for February 17, 2025. The price band for the IPO is ₹151 to ₹159 per equity share, with a market capitalization of ₹388.78 Crores at the upper price band. The IPO lot size is 800 shares, requiring a minimum investment of ₹1,27,200 for retail investors and ₹2,54,400 for High-Net-Worth Individuals (HNIs).

The book running lead manager for the IPO is UNISTONE CAPITAL PRIVATE LIMITED, and the registrar is KFin Technologies Limited, with R.K. Stockholding Private Limited acting as the market maker.

Financial Performance and Key Metrics

Chandan Healthcare has shown strong financial growth in recent years. The revenues for FY2024 stood at ₹16,798.82 Lakh, up from ₹17,795.86 Lakh in FY2023, and ₹13,702.92 Lakh in FY2022. The EBITDA for FY2024 reached ₹3,073.40 Lakh, up from ₹2,761.59 Lakh in FY2023, while the Profit After Tax (PAT) for FY2024 was ₹1,741.99 Lakh. The company has experienced a significant improvement in profitability, as evidenced by its positive PAT growth from a loss of ₹109.25 Lakh in FY2022 to substantial profits in the following years.

Key performance indicators include a pre-issue EPS of ₹8.14 and a post-issue EPS of ₹6.66 for FY24. The P/E ratio for the IPO is 19.53x (pre-issue) and 23.89x (post-issue), while the industry P/E ratio is 75x. These metrics indicate the IPO is priced reasonably, with a strong return on equity (ROE) of 47.50% and ROCE of 35.20% for FY24. The Return on Net Worth (RoNW) stands at 39.54%, showing robust financial health and operational efficiency.

IPO Grey Market Premium and Allotment Status

The Grey Market Premium (GMP) for Chandan Healthcare IPO is ₹23, representing a 14.46% expected listing gain. This suggests moderate optimism among grey market traders, although grey market premium trading is unregulated, and investors should proceed with caution.

As of February 12, 2025, the IPO has been subscribed 1.37 times, indicating solid demand for the issue on its last day of subscription. The IPO allotment status will be finalized on February 13, 2025. Investors can check their allotment status on the registrar’s website by entering their application number, PAN, or DP Client ID.

IPO Objectives and Use of Funds

The company intends to utilize the net proceeds from the IPO for:

• ₹3,281.58 Lakhs to set up a new flagship diagnostic centre in Jankipuram, Lucknow.
• ₹710.23 Lakhs to establish a new Central Reference Laboratory in Ayodhya, Uttar Pradesh.
• ₹710.11 Lakhs for the Central Reference Laboratory in Ashiyana, Lucknow.
• The remaining funds will be used for general corporate purposes.

Chandan Healthcare IPO Review

Chandan Diagnostics has a strong presence in the diagnostic industry, with over 50 diagnostic centres and 500 collection centres across Uttar Pradesh and Uttarakhand. The company’s growth trajectory is backed by a strong management team, including Amar Singh and Asmita Singh, who each have over two decades of experience in the diagnostic industry.

Considering the financial performance, reasonable pricing, and GMP trend, the Chandan Healthcare IPO presents an opportunity for risky investors to apply for listing gains. The strong demand in the grey market and steady growth in the company’s revenues and profitability make this IPO attractive for those willing to take a calculated risk.

The Upcoming IPOs in this week and coming weeks are Quality Power Electrical Equipmwnt, PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies, L.K. Mehta, Shanmuga Hospital.

The Current active IPO are Ajax Engineering, Chandan Healthcare..

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