Shanmuga Hospital IPO: Review, Price, Details, Date & GMP

Shanmuga Hospital IPO-Complete Overview

Shanmuga Hospital IPO under the SME IPO category is a fixed price issue of Rs.20.62 Cr (38.18 lac Shares) by Shanmuga Hospital Limited, which was incorporated in 2020 and is a Multispecialty Hospital that carries advanced healthcare technology and 151-bed support to meet the medical community's needs and those of nearby areas.

NABH and NABL accredited the hospital to provide quality healthcare services in respect of prevention, treatment, and rehabilitation.

Sited at 51/24 Saradha College Road, Salem, Tamil Nadu, the hospital covers an area of 45,311 sq. ft spread over 2 blocks on three floors, offering IPD and OPD services with an exclusive team.

 

Sections in the Hospital:

Shanmuga Pharmacy & Diagnostics:

The Hospital has its own Shanmuga Pharmacy that provides medicines for OPD as well as IPD patients. Shanmuga Diagnostics is a hub for reliable pathology services as well as very accurate medical evaluations and treatment planning.

Shanmuga Clinics:

• It provides consultation and treatment at various locations in Salem through Shanmuga Clinics. It specially shifts critical patients to the main hospital for advanced treatment. 
• Procedures, Pulmonary Medicine, Cardiology, Orthopedics, Neurology, Cancer Care, General Medicine, Endocrinology & Diabetes Department, Plastic Surgery, and Pediatrics & Neonatology are the services offered by this facility.

 

Shanmuga Hospital Limited IPO Overview

The Shanmuga Hospital Limited IPO date is 13 Feb 2025 and will close on 17 Feb 2025.    This new SME IPO comprises a wholly fresh issue of 38.18 lac Shares.

This upcoming IPO date is set for 13 Feb 2025. The Shanmuga Hospital IPO Price is Rs.54 for each Share. The listing date is 20 Feb 2025 at BSE and SME.

The GMP of current IPOs can be viewed on our Live IPO GMP page, where you can get the current SME IPO GMP of all open IPOs.

Click Here to open a Demat account and apply for the IPO.

Company Financial

(Amount in Cr)

Period	30 Sep 2024	31 Mar 2024	31 Mar 2023
Total Assets	36.53	33.92	23.05
Total Revenue	24.83	43.39	39.5
PAT	2.39	5.26	4.76
Net Worth	19.53	17.13	11.82
Reserves & Surplus	9.73	7.34	11.74
Borrowings	9.76	9.02	7.65

 

Cash Flows

The cash flows for various activities are mentioned below:

(Amount in lac)

Net Cash Flow In Multiple Activities	30 Sep 2024	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	70.35	957.21	294.78
Net Cash Flow Investing Activities	(186.06)	(1,149.83)	(831.42)
Net Cash Flow Financing Activities	40.30	81.08	736.96

 

Category-wise Revenue Breakdown 

(Amount in lac)

Particulars	30 Sep 2024	31 Mar 2024	31 Mar 2023
Self-payers	1,360.19	2,256.73	1,973.24
Governments and other Bodies established by Statute	903.08	1,532.83	1,627.38
Insurance and TPAs	198.91	514.18	333.85
Total	2,462.18	4,303.74	3,934.47

(Source: RHP)

The Objective of The Issue

• Financing capital expenditures for the acquisition of extra medical equipment

• General corporate purposes.

 

Peers of Shanmuga Hospital Ltd. 

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Asarfi Hospital Ltd.	10	2.33	37.77
Family Care Hospitals Limited	10	2.32	2.59
Aashka Hospitals Ltd.	10	1.01	98.37

 

Evaluation

The IPO price is Rs.54 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 30 Sep 2024 with an EPS of Rs.5.37 from the last year, the resulting P/E ratio is 10.06x.

Considering the weighted EPS of Rs.5.47 for the last three years, the P/E ratio is 9.87x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 50.48x.

Particulars	P/E Ratio (x)
Highest	98.37
Lowest	2.59
Average	50.48

In simple words, the P/E ratio of this IPO (10.06x), compared with the industry’s average P/E of 50.48x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• Presence in Oncology.

• Over four decades of excellent experience possessed by promoters.

• Affordability for Regional Population.

• Specialized Equipment LINAC, CATHLAB, MRI, MODULAR OT.

• Tie up with Government and Private Insurance Companies.

 

IPO’s Weaknesses

• Various lawsuits against the business, its promoters, directors, and affiliated businesses have been brought. Any unfavorable result in these situations can have a significant impact on the business.

• Potential risks are increased by the hospital's usage of flammable substances including alcohol, sanitizers, and gasses. Any fire-related incident can cause fatalities, serious injuries, etc.

• They contain restrictive financial agreements that may adversely affect the organization’s financial position. Failure to comply may be costly resulting in penalties greater liability or even the loss of financing agreements.

• These processes have to be adhered to without failure as the company is liable to maintain reasonable measures of internal control. In the case of weakness and failure, these measures can result in inaccurate financial reporting and legal issues in the market.

 

Shanmuga Hospital IPO GMP 

Shanmuga Hospital IPO GMP is Rs.8 as of 12 Feb 2025.

IPO Timetable (Tentative)

The IPO date is 13 Feb with tentative allotment on 18 Feb refund initiation on 19 Feb and listing on 20 Feb 2025.

Events	Date
IPO Opening Date	Feb 13, 2025
IPO Closing Date	Feb 17, 2025
IPO Allotment Date	Feb 18, 2025
Refund Initiation	Feb 19, 2025
IPO Listing Date	Feb 20, 2025

 

Shanmuga Hospital IPO Details 

The IPO, with a Face Value of Rs.10 per share, offers a total issue size of 38,18,000 Shares (Rs.20.62 Cr).

IPO Opening & Closing Date	13 Feb 2025 to 17 Feb 2025
Face Value	Rs.10 per Share
Issue Price	Rs.54 per Share.
Lot Size	2000 Shares
Issue Size	38,18,000 Shares (Rs.20.62 Cr)
Offer for Sale	-
Fresh Issue	38,18,000 Shares (Rs.20.62 Cr)
Listing at	BSE, SME
Issue Type	Fixed Price Issue IPO
Registrar	Integrated Registry Management Services Private Limited

 

Shanmuga Hospital IPO Lot Details 

The Shanmuga Hospital IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.1,08,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,16,000.

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

 

IPO Reservation (% of Net Issue)

Other’s Portion	50%
Retail’s Portion	50%

 

Promoters And Management of Shanmuga Hospital Ltd.

• Dr. Panneerselvam Palaniappan Shanmugam

• Dr. Prabu Sankar Panneerselvam

• Dr. Priyadharshni Dhandapani

• Mrs. Jayalakshmi Panneerselvam.

Pre-Issue Promoter Shareholding	100%
Post-Issue Promoter Shareholding	71.95%

 

IPO Lead Managers

Finshore Management Services Limited.

Dividend Policy

The company has not declared a dividend in the last three financial years.

Conclusion

Shanmuga Hospital IPO presents to its investors a chance to invest in a growing multispecialty hospital with medical facilities. The IPO with P/E ratio is considerably lower than the average of the industry, which gives it within the valuation. Investors should read factors that include pending litigations and operational hazards. 

DISCLAIMER: This is NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.

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Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

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