Shanmuga Hospital Ltd, a well-established multispecialty healthcare provider located in Salem, is set to launch its Initial Public Offering (IPO) on February 13, 2025. With a strong focus on offering high-quality healthcare services, the hospital operates with 151 beds and provides advanced medical technology to cater to the growing medical needs of the region. As a NABH Accredited and NABL Accredited institution, Shanmuga Hospital is known for its commitment to excellence in prevention, treatment, and rehabilitation. The IPO, with a total value of ₹20.62 Crores, will consist of 38.18 Lakh shares and is a Fixed Price Issue.

IPO Details
The subscription period for the Shanmuga Hospital IPO will run from February 13 to February 17, 2025, with the allotment expected to be finalized on February 18, 2025. The shares will be listed on the NSE SME on February 20, 2025, making it an attractive opportunity for investors looking to tap into the healthcare sector.

The IPO share price is set at ₹54 per equity share, and the market capitalization at this price will be ₹73.51 Crores. The lot size for the IPO is 2,000 shares, and retail investors will need to invest a minimum of ₹1,08,000, while HNIs need to purchase a minimum of 2 lots (4,000 shares), amounting to ₹2,16,000. FINSHORE MANAGEMENT SERVICES LIMITED is the book running lead manager for the IPO, and INTEGRATED REGISTRY MANAGEMENT SERVICES (P) LTD is the registrar.

Grey Market Premium (GMP)
As of February 8, 2025, the Grey Market Premium (GMP) for the Shanmuga Hospital IPO is ₹8, reflecting a 14.81% expected listing gain. The GMP is a reflection of market sentiment but is not a reliable indicator for future performance. The GMP should be considered for informational purposes only, and investors should wait for the official listing to gauge the stock’s real market value.

Financial Performance
Shanmuga Hospital’s financial performance has shown steady growth over the years, with revenues for the period ending September 30, 2024 at ₹2,482.81 Lakhs. The EBITDA for FY24 stood at ₹463.31 Lakhs, and the profit after tax for the period was ₹239.29 Lakhs. In the preceding fiscal years, the hospital has demonstrated consistent growth in both revenue and profitability, reflecting strong operational performance.

For FY24, the company reported a pre-issue EPS of ₹5.37, with a post-issue EPS of ₹3.87. The pre-issue P/E ratio stands at 10.06x, while the post-issue P/E ratio is 13.97x, which is relatively lower than the industry P/E ratio of 22x. This suggests that the IPO is fairly priced, making it a potentially attractive investment for those with a long-term view. The company also reported Return on Capital Employed (ROCE) of 35.89% and Return on Equity (ROE) of 30.71% for FY24, indicating robust profitability metrics.

Objectives of the IPO
The net proceeds from the Shanmuga Hospital IPO are aimed at funding the following:

1. ₹1,452.50 Lakhs for the purchase of additional medical equipment. This will enhance the hospital's capacity to provide advanced treatment.
2. ₹383.28 Lakhs for general corporate purposes, which will allow the hospital to expand its operations and sustain its growth.

IPO Review
Shanmuga Hospital Ltd has built a strong brand in the healthcare sector, and its IPO presents an opportunity for investors to participate in its growth journey. The company has demonstrated strong financial performance with steady revenue and profit growth. Given the positive Grey Market Premium (GMP) and the fair pricing of the IPO, risky investors looking for short-term listing gains may find this IPO appealing.

The hospital's track record and healthy financial ratios make it a promising option for long-term investors, especially those looking to invest in the growing healthcare sector in India.

For investors seeking more details on Shanmuga Hospital and other upcoming IPOs, visit our IPO section for the latest updates on IPOs and the best IPOs to apply now.

Conclusion
Shanmuga Hospital IPO is a promising opportunity in the growing healthcare sector, with a fairly priced IPO and a strong market sentiment as reflected in the GMP. Whether you’re a retail investor or an HNI, Shanmuga Hospital’s commitment to expanding its services and purchasing advanced medical equipment signals long-term growth.

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..

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.