Shanmuga Hospital Limited, located in Salem, is a leading multispecialty healthcare provider equipped with advanced medical technologies and a 151-bed capacity. Established with the aim of meeting the healthcare needs of the local community and surrounding regions, it offers comprehensive services, ranging from prevention to treatment and rehabilitation. Accredited by the National Accreditation Board for Hospitals and Healthcare (NABH) and National Accreditation Board for Testing and Calibration Laboratories (NABL), Shanmuga Hospital is a renowned institution in the region for providing high-quality healthcare.

Now, the hospital is seeking to raise capital through an Initial Public Offering (IPO), with the issue amounting to ₹ 20.62 Crores through the issuance of 38.18 lakh equity shares. The subscription period for the Shanmuga Hospital IPO began on February 13, 2025, and will close on February 17, 2025. The allotment of shares will be finalized by February 18, 2025, and the shares are expected to list on the NSE SME on February 20, 2025.

The IPO price for Shanmuga Hospital has been set at ₹ 54 per equity share, resulting in a market capitalisation of ₹ 73.51 Crores at the issue price. Investors can subscribe for a minimum of 2,000 shares, with retail investors required to invest ₹ 1,08,000. High-Net-Worth Individuals (HNIs) need to invest in 2 lots (4,000 shares), totaling ₹ 2,16,000. The Grey Market Premium (GMP) for the IPO is expected to be ₹ 8, indicating a 14.81% potential gain on listing.

The IPO is being managed by FINSHORE MANAGEMENT SERVICES LIMITED, with INTEGRATED REGISTRY MANAGEMENT SERVICES (P) LTD serving as the registrar for the issue. Black Fox Financial Private Limited is the market maker for the Shanmuga Hospital IPO. The GMP value, which stands at ₹ 8 today, reflects an expectation of listing gains based on demand and supply in the unorganised market. However, it's important to note that GMP figures are unofficial and for informational purposes only.

As of February 14, 2025, the IPO was subscribed 1.23 times on its second day of subscription. Investors can check the live subscription status on the BSE website. On February 18, 2025, the IPO allotment will be decided, and investors can check their allotment status by visiting the registrar's website.

Shanmuga Hospital plans to use the net proceeds of the IPO for capital expenditure to purchase additional medical equipment, with an allocation of ₹ 1,452.50 Lakhs. Another portion of the funds, amounting to ₹ 383.28 Lakhs, will be used for general corporate purposes.

The financial performance of Shanmuga Hospital has shown steady growth over the past few years, with revenues increasing from ₹ 3,949.56 Lakh in FY 2023 to ₹ 4,338.78 Lakh in FY 2024. The EBITDA also saw an uptick, reflecting efficient operational management. For the six months ending September 30, 2024, the profit after tax (PAT) was ₹ 239.29 Lakh. These figures suggest a robust financial standing for the company, which may appeal to investors looking for steady growth prospects in the healthcare sector.

The Key Performance Indicators (KPIs) show a pre-issue EPS of ₹ 5.37 and a post-issue EPS of ₹ 3.87 for FY 2024. The pre-issue P/E ratio stands at 10.06x, while the post-issue P/E ratio is 13.97x. In comparison, the industry average P/E ratio is around 22x, suggesting that Shanmuga Hospital's IPO is fairly priced for investors. Additionally, the company has a Return on Capital Employed (ROCE) of 35.89% and a Return on Equity (ROE) of 30.71%, which are both strong indicators of its profitability and potential for future growth.

Shanmuga Hospital is led by Dr. Panneerselvam Palaniappan Shanmugam, the Chairman-cum-Managing Trustee, who has over 40 years of experience in the healthcare sector. Along with his team, including Dr. Prabu Sankar Panneerselvam (9 years of experience), Dr. Priyadharshni Dhandapani (9 years in Paediatrics and Administration), and Mrs. Jayalakshmi Panneerselvam (30+ years in healthcare), the company is well positioned for long-term growth.

With the strong financial metrics, solid growth potential, and a discounted P/E ratio compared to the industry average, this IPO seems attractive to risky investors seeking listing gains. However, as with any investment, potential subscribers should carefully evaluate their risk appetite before applying.

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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