Shanmuga Hospital Limited, a renowned multispecialty hospital strategically located in Salem, has opened its Initial Public Offering (IPO) on February 13, 2025. The IPO is a fixed price issue amounting to ₹20.62 Crores, consisting entirely of a fresh issue of 38.18 lakh shares. The IPO subscription period will close on February 17, 2025, with the allotment date scheduled for February 18, 2025. The shares are expected to list on the NSE SME segment on February 20, 2025.

Shanmuga Hospital, equipped with advanced healthcare technology and a capacity of 151 beds, is committed to providing high-quality medical services to the community. With a strong focus on prevention, treatment, and rehabilitation, the hospital has been recognized with NABH (National Accreditation Board for Hospitals and Healthcare) and NABL (National Accreditation Board for Testing and Calibration Laboratories) accreditations. The hospital serves patients from nearby regions and continues to strengthen its foothold in the healthcare sector.

IPO Key Details and Financials

The issue price for the Shanmuga Hospital IPO is ₹54 per equity share, and the market capitalization at the IPO price is ₹73.51 Crores. The lot size is 2,000 shares, with retail investors required to invest a minimum of ₹1,08,000. High-Net-Worth Individuals (HNIs) need to invest in at least 2 lots (4,000 shares), amounting to ₹2,16,000.

FINSHORE MANAGEMENT SERVICES LIMITED is the book running lead manager, and INTEGRATED REGISTRY MANAGEMENT SERVICES (P) LTD is the registrar for the IPO. Black Fox Financial Private Limited serves as the market maker for the Shanmuga Hospital IPO.

Grey Market Premium (GMP) Update

The Grey Market Premium (GMP) for the Shanmuga Hospital IPO is currently ₹8, based on the financial performance of the company. The GMP reflects a potential listing gain of 14.81%. However, investors should note that trading in the Grey Market is speculative and does not provide a guaranteed price discovery. The GMP is primarily for informational purposes and should not influence your investment decisions.

Subscription Status and Allotment Process

As of 12:30 PM on February 14, 2025, the Shanmuga Hospital IPO has been subscribed 0.94 times on its second day of subscription. Investors can check the live subscription status on the BSE platform for real-time updates.

The allotment date for the Shanmuga Hospital IPO is February 18, 2025. To check the allotment status, investors should visit the Registrar’s website, select the Shanmuga Hospital IPO from the dropdown, and enter the necessary details like the application number, PAN, or DP Client ID.

Objectives of the IPO

The funds raised from the IPO will be utilized for the following key objectives:

• ₹1,452.50 Lakhs for the purchase of additional medical equipment.
• ₹383.28 Lakhs for general corporate purposes.

Financial Performance and Valuation

Shanmuga Hospital Limited has shown consistent growth in revenue, with a Revenue from operations for the period ended September 30, 2024, amounting to ₹2,482.81 Lakh. The EBITDA for the same period is ₹463.31 Lakh, and the Profit after Tax stands at ₹239.29 Lakh. These figures indicate the company’s financial stability and growth trajectory.

The pre-issue EPS for FY24 is ₹5.37, and the post-issue EPS is ₹3.87. The pre-issue P/E ratio is 10.06x, while the post-issue P/E ratio stands at 13.97x. This compares favorably to the industry average P/E ratio of 22x, indicating that the IPO is priced reasonably for its growth prospects.

Conclusion and Recommendation

Based on the financial performance, growth potential, and reasonable valuation, the Shanmuga Hospital IPO appears to be a promising investment opportunity. With a GMP of ₹8, the IPO shows potential for a listing gain. However, as always, investors should assess their risk appetite before making an investment.

The Upcoming IPOs in this week and coming weeks are Royalarc Electrodes Limited, Tejas Cargo India Limited, Quality Power Electrical Equipments.

The Current active IPO are  L.K. Mehta, Shanmuga Hospital, PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies.

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