Shanmuga Hospital Limited, a multispecialty hospital in Salem, offers advanced healthcare services with a 151-bed capacity. The hospital is NABH and NABL accredited, providing quality healthcare services for prevention, treatment, and rehabilitation. Serving local and nearby region patients, it is equipped with state-of-the-art technology to meet the community's healthcare needs.

The IPO is a fixed price issue of ₹20.62 crores, entirely comprising a fresh issue of 38.18 lakh shares. The subscription period opens from February 13, 2025, to February 17, 2025, with allotment finalization by February 18, 2025, and the listing expected by February 20, 2025 on NSE SME.

Key IPO Details:

• Price Per Share: ₹54
• Market Capitalisation: ₹73.51 crores (at the IPO price).
• Lot Size: 2,000 shares (₹1,08,000 for retail investors).
• HNIs Minimum Investment: ₹2,16,000 for 4,000 shares.

FINSHORE MANAGEMENT SERVICES LIMITED is the book running lead manager, while INTEGRATED REGISTRY MANAGEMENT SERVICES is the registrar. Black Fox Financial Pvt. Ltd. is the market maker for the IPO.

Financial Insights:

• Revenue from Operations (FY 2024): ₹2,482.81 lakh, showing slight growth from ₹4,147.10 lakh in FY 2022.
• EBITDA (FY 2024): ₹463.31 lakh, down from ₹912.96 lakh in FY 2022.
• Profit After Tax (PAT): ₹239.29 lakh for FY 2024, compared to ₹671.82 lakh in FY 2022.

Key Performance Metrics:

• Pre-issue EPS: ₹5.37
• Post-issue EPS: ₹3.87
• Pre-issue P/E Ratio: 10.06x
• Post-issue P/E Ratio: 13.97x (Industry P/E is 22x)
• ROCE (FY24): 35.89%
• ROE (FY24): 30.71%
• RoNW (FY24): 30.71%

The financials suggest steady growth, with a fairly priced IPO.

IPO Objectives:

The proceeds from the IPO will be used for:

1. Purchase of additional medical equipment (₹1,452.50 lakh).
2. General corporate purposes (₹383.28 lakh).

Grey Market Premium (GMP) and Subscription Updates:

• GMP: ₹8 (14.81% expected listing gain).
• As of February 17, 2025, the IPO was subscribed 2.43 times.

IPO Allotment Process:

To check the allotment status, visit the registrar’s website starting February 18, 2025, and enter your application number, PAN, or DP Client ID.

Anchor Investors:

There are no anchor investors in this IPO.

Investor Guidance:

With a 14.81% GMP and strong financial metrics, Shanmuga Hospital presents a risky but potentially profitable investment for those seeking listing gains. However, investors should be cautious of the relatively high P/E ratio compared to the industry.

Conclusion: While the GMP signals possible gains, the moderate financial performance and high valuation compared to the industry suggest a higher risk investment. Therefore, risk-tolerant investors may apply to the Shanmuga Hospital IPO for listing gains, but caution is advised for conservative investors.

The Upcoming IPOs in this week and coming weeks are Swasth Foodtech, Beezaasan Explotech, HP Telecom India.

The Current active IPO are Royalarc Electrodes, Tejas Cargo India, Quality Power Electrical Equipments.

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 Update.