Asarfi Hospital Ltd IPO - Review, Price, GMP & Valuation

Asarfi Hospital Limited - Complete Overview

Established in 2005 by Nayan Prakash Singh and Harendra Singh, Asarfi Hospital Limited is renowned for providing healthcare facilities to the residents of Jharkhand. 

With a capacity of 250 beds, this multi-speciality hospital has been serving the people in Dhanbad, Jharkhand, for over one and a half decades.

The hospital holds accreditation for delivering comprehensive healthcare services, encompassing prevention, treatment, and rehabilitation. 

It has established partnerships with various government agencies, corporate organizations, insurance providers, and third-party administrators to offer regular healthcare facilities to employees and their dependents.

The hospital boasts an extensive range of services, including cardiology, neurosciences, general medicine, paediatrics and neonatology, obstetrics and gynaecology, general surgery, gastroenterology, orthopaedics, plastic surgery and cosmetics, oncology, nephrology, urology, ophthalmology, ENT, day care services, dental, physiotherapy, emergency care, nutrition and dietetics, anesthesiology and critical care, radiology, pulmonology, pain management, and more.

Equipped with a high-dependency unit, emergency department, outpatient consultation, CCU, ICU, NICU, SICU, labour room, endoscopy room, neurosurgery unit, and cardiac unit, the hospital ensures comprehensive care for patients. 

The diagnostic centre is equipped with advanced laboratory and imaging equipment, including open X-rays, ultrasound, and CT scans.

Asarfi Hospital covers a wide range of medical and surgical specialities, providing exceptional healthcare services to both inpatient and outpatient care.

 

What does the company do?

Asarfi Hospital Limited operates as a healthcare service provider in Dhanbad, Jharkhand, offering a wide range of medical services.

 

 

Company Products

Among its comprehensive healthcare services, the hospital provides specialized treatments in cardiology, neurosciences, general medicine, paediatrics and neonatology, obstetrics and gynaecology, general surgery, gastroenterology, orthopaedics, plastic surgery and cosmetics, oncology, nephrology, urology, ophthalmology, ENT, day care services, dental care, physiotherapy, emergency care, nutrition and dietetics, anesthesiology and critical care, radiology, pulmonology, pain management, and more.

 

IPO Overview

The Asarfi Hospital Limited SME IPO is scheduled to be listed in the stock market from July 17 to July 19, 2023. The price range for the upcoming IPO is set at Rs. 51 to Rs. 52 per share with a face value of Rs. 10.

The anticipated date for the IPO listing is July 27, 2023, on the BSE SME platform, while the share allocation is expected to be completed by July 24, 2023. Retail investors have the opportunity to bid for a maximum of 1 lot, which consists of 2000 shares.

Regarding the allocation of shares, the company has decided to allocate 35% to retail investors, 15% to non-institutional investors, and 50% to institutional investors.

 

Asarfi Hospital Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	17 JULY 2023
IPO Closing Date	19 JULY 2023
IPO Allotment Date	24 JULY 2023
Refund initiation	25 JULY 2023
IPO Listing Date	27 JULY 2023

 

Asarfi Hospital Limited IPO Details

IPO Opening & Closing Date	17 July 2023 to 19 July 2023
Face Value	Rs. 10 per share
Issue Price	Rs. 51 to Rs. 52 Per Share
Lot Size	2000 Shares
Price of 1 Lot	Rs 104,000
Issue Size	5,180,000 Shares  (aggregating up to Rs. 26.94 Cr)
Offer for Sale	NA
Fresh Issue	5,180,000 Shares  (aggregating up to Rs. 26.94 Cr)
Listing at	BSE SME
Issue Type	Book Built Issue IPO
Registrar	Cameo Corporate Service Ltd.

 

Asarfi Hospital Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Asarfi Hospital Limited IPO Reservation

Institution Portion	50%
Non-Institution Portion	15%
Retail Portion	35%

 

Company Financial

Amount in Lakhs

Period	FY 21	FY 22	FY 23
Total Assets	3729.45	6270.24	9342.71
Total Revenue	5439.90	6619.54	7303.26
Net Profit	353.43	572.84	801.53
Net Worth	1689.90	2262.73	4184.26
Reserve & Surplus	1564.95	2137.78	2734.53
Total Borrowings	713.36	1163.31	1720.20

 

Service-wise Revenue of Asarfi Hospital Limited

Amount in Lakhs

Particular	FY 23	FY 22	FY 21
Hospital Sales & Services	6,609.24	6,002.78	4,405.39
Hospital Medicinal Sales	461.09	518.53	1,006.78
Total	7,070.33	6,521.31	5,412.17

 

Department-wise Revenue of Asarfi Hospital Limited

Amount in Lakhs

Department	FY 23	FY 22
Cardiology	1,955.8	1,832.34
Neurosciences	1,092.4	1,648.99
General Medicine	1,097.9	825.58
Paediatrics & Neonatology	634.2	563.11
Obstetrics & Gynaecology	448.4	418.45
General Surgery	423.2	380.86
Gastroenterology	405.9	258.82
Orthopaedics	230.3	185.03
Plastic Surgery & Cosmetics	124.4	161.77
Oncology	98.3	70.07
Others	559.53	176.29
Total	7,070.33	6,521.30

 

Customer classification and revenue-wise split from various payer categories of Asarfi Hospital Limited

Amount in Lakhs

Particular	FY 23	FY 22	FY 21
Government Sector Turnover from Sale of Services	-	-	-
Government Patients Sale of Services	2,481.33	2,115.31	1,803.86
Private Sector Turnover
Medicine Sales	461.09	518.53	1,006.78
General Patients Sale of Services	3,650.33	3,544.80	2,356.05
TPA Patients Sale of Services	477.58	342.67	245.48
Other Non-Operating Income	232.93	98.23	27.73
Total Turnover	7,303.26	6,619.54	5,439.89

 

Objective of the Issue

• Partial funding for the capital expenditure of a cancer hospital in Ranguni, Jharkhand.
• Obtaining land on a leasehold basis for the Health Management and Research Institute in Ranchi, Jharkhand.
• Utilizing funds for general corporate purposes.

 

Promoters and Management of Asarfi Hospital Limited

The company's key promoters comprise Mr Harendra Singh, who holds the position of Promoter and CFO, Mr Nayan Prakash Singh, serving as a Promoter, Mr Udai Pratap Singh, who is a Promoter and MD, Mrs Madhuri Singh, functioning as a Promoter and Non-Executive Director, and Nitu Singh, also recognized as a Promoter.

Pre-issue Promoters Holding	83.03%
Post-issue Promoters Holding	61.17%

 

Peer Comparison

Company Name	LTP (Rs.)	EPS Basic/ Diluted	PE	Total Income (Rs. In lakhs)
Asarfi Hospital Limited	-	7.58	-	7, 303.26
Shalby Limited	153.15	7.48	20.47	72,738.2
Global Health Limited	650.70	12.57	51.77	2,75,916.31
KMC Speciality Hospitals (India) Ltd.	65.88	1.64	40.17	13,821.97

 

IPO's Valuations

The company carefully considers multiple factors before the valuation of the IPO's issue price. These key factors include an EPS of Rs. 7.58 per share, RoNW of 19.16%, NAV of 28.86, ROCE of 19.91%, ROE of 19.16%, and a Debt/Equity ratio of 0.41. The Asarfi Hospital IPO date is 17 July to 19 July 2023.

 

Dividend Policy

The company does not have a predefined dividend policy and has not distributed any dividends in the past three fiscal years, as stated in the Asarfi Hospital Limited DRHP. The decision to declare and distribute dividends will be proposed by the Board of Directors and subject to approval by the company's shareholders. 

 

IPO's Strengths

• High-quality healthcare services.
• Diversified and specialized service offerings
• Team of experienced doctors, consultants, and medical support staff.
• Stable operational and financial performance with consistent growth.

 

IPO Weaknesses

• Legal proceedings against the directors and promoters of the company.
• Ensuring compliance with statutory and regulatory permits, accreditations, licenses, and adherence to applicable safety, health, environmental, labour, and other governmental regulations.
• Reliance on tie-up arrangements with governmental organizations, insurance companies, third-party administrators, and corporations for a substantial portion of revenue.

 

 

IPO GMP

Asarfi Hospital Limited IPO GMP is not available.

 

Conclusion 

The IPO of Asarfi Hospital Limited presents a promising investment opportunity in the healthcare sector. The company has demonstrated consistent financial growth over the years and is expected to continue this positive trend in the future. Investors can consider this stock as a potential avenue for earning profits in the long run. However, it is important to conduct a thorough analysis of all relevant factors before making any investment decisions to ensure optimal results.

 

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To Read the Prospectus of the Company Click Here to Download the DRHP and Click Here to Download the RHP

 

 

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