KK Shah Hospitals Ltd. IPO - Review, Valuation & GMP Today

KK Shah Hospitals Limited - Complete Overview

Incorporated in the year 2022, KK Shah Hospitals Limited, formerly known as Jeevan Parv Healthcare Limited, is an inpatient and outpatient healthcare institution facility in Ratlam. 

Dr. Kirti Kumar Shah, one of the company's promoters, initiated a clinic in Ratlam city in 1976. Subsequently, he established a nursing home in 1991 under the name "Shah Maternity and Nursing Home." Dr. Kirti Kumar Shah further expanded his healthcare services by founding a hospital called "Shah Hospital" and enlisted the expertise of renowned doctors.

KK Shah Hospitals, in alignment with its objectives, acquired Shah Maternity and Nursing Home Hospital through a Business Transfer Agreement. 

This hospital, with a capacity of 26 in-patient beds, is well-equipped with diagnostic tools such as CT scans, DEXA scans, BMD, sonography, and X-ray machines. The company is also a member of the Biomedical Waste Management System in Ratlam for the responsible disposal of biomedical waste. 

Additionally, it holds certification from the National Accreditation Board for Hospitals and Healthcare Providers (NABH) as a primary-level healthcare institution in Madhya Pradesh.

During the fiscal year 2022-23 and the period from April 1, 2023, to June 30, 2023, the hospital conducted approximately 75-80 surgeries per month, including around 30 orthopaedic, 15 gynaecological, 25 general surgeries, 10 dental procedures, and other specialities. 

It provided healthcare services to approximately 2,310-2,400 patients per month, consisting of around 210-250 in-patients and approximately 2,100-2,150 outpatients per month. 

Notably, the hospital reported a bed occupancy rate of about 31.92% in June 2023, with an average of approximately 8.30 inpatients per day during the same month.

Furthermore, the company has inked an agreement, dated January 28, 2023, with 'M/s. Life Care Diet Service' to provide food services to its patients and a cafeteria for attendants within the hospital premises.

 

What does the company do? 

KK Shah Hospitals Limited is an inpatient and outpatient healthcare facility located in Ratlam.

 

 

IPO Overview 

The KK Shah Hospitals IPO date is slated to commence on October 27 and conclude on October 31, 2023. This SME IPO follows a Fixed Price Issue model. 

The KK Shah Hospitals IPO Price has been set at Rs. 45 per share, and it is anticipated to be officially listed on November 8, 2023. The company's objective for this upcoming SME IPO is to raise Rs. 8.78 Crores.

Each lot comprises 3000 shares, and retail investors are permitted to bid for a maximum of 1 lot. The registrar responsible for managing this issue is Bigshare Services Private Limited.

 

KK Shah Hospitals Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	27 October 2023
IPO Closing Date	31 October 2023
IPO Allotment Date	3 November 2023
Refund initiation	6 November 2023
IPO Listing Date	8 November 2023

 

KK Shah Hospitals Limited IPO Details 

IPO Opening & Closing Date	27 October to 31 October 2023
Face value	Rs.10 per Share
Issue Price	Rs. 45 per Share
Lot Size	3000 Shares
Price of 1 Lot	Rs. 135,000
Issue Size	1,950,000 Shares (aggregating up to Rs. 8.78 Cr)
Offer for sale	NA
Fresh issue	1,950,000 Shares (aggregating up to Rs. 8.78 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt. Ltd.

 

KK Shah Hospitals Limited IPO Lot Details 

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

 

KK Shah Hospitals Limited IPO Reservation

Other Investors Share Portion	50%
Retail Investors Share Portion	50%

 

Company Financial

Amount in Lakhs

Period	30 June 2023	31 Mar 2023
Total Assets	573.32	561.32
Total Revenue	162.21	214.11
PAT	9.53	21.81
Net worth	518.74	509.21
Reserve & Surplus	32.89	23.36
Total Borrowings

 

Objective of the Issue 

The company intends to allocate the Net Proceeds to fulfil the following purposes:

• Acquisition of medical equipment.
• Meeting general corporate needs.

 

Promoters and Management of KK Shah Hospitals Limited

Dr. Amit Shah and Dr. Kirti Kumar Shah are the Promoters of the KK Shah Hospitals.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	71.36%

 

Peer Comparison

Below are the listed peers of KK Shah Hospitals.

Particulars	Revenue from operations	PAT	Net Worth
KK Shah Hospitals (Period ended on June 30, 2023)	161.85	9.53	518.74
Family Care Hospitals Limited (Formerly known as Scandent Imaging Limited)  (March 31, 2023)	4,729.69	525.72	4580.97
Shalby Limited (March 31, 2023)	70801.70	8,080.8	97,032.3
KMC Speciality Hospitals (India) Limited (March 31, 2023)	15,575.64	2668.84	11,350.21
Global Longlife Hospital and Research Limited (March 31, 2023)	2350.17	182.75	6428.97

 

IPO's Valuations

To evaluate the IPO valuation, we can utilize the data furnished in the company's DRHP. KK Shah Hospitals IPO price has been set at Rs. 45 per share, and its EPS is Rs. 0.45. Considering the issue price, the company's PE ratio is currently at 100.

 

Dividend Policy

According to the KK Shah Hospitals IPO DRHP, the company has not distributed any dividends in the past, and any potential future dividend payouts will be contingent on the company's financial performance.

 

IPO's Strengths

• Outstanding Clinical Care and Cost-Effective Healthcare Services.
• Adept at drawing and retaining top-tier physicians, consultants, and medical support personnel.
• Seasoned Promoters and a management team with a proven history of effective execution.
• Established participant with a long-standing presence and a recognized brand.

 

IPO Weaknesses

• The company's revenue hinges on in-patient treatments and primary outpatient care, which may face potential declines influenced by various factors.
• Legal disputes involving the directors, promoters, and affiliated companies remain unresolved.
• Effective competition against both existing and emerging rivals in the field of multi-specialty and super-specialty hospitals, as well as medical practitioners, is crucial for the company's sustained success.
• The company's operations are contingent on securing and upholding specific governmental and regulatory licenses.
• Given the sensitive nature of the healthcare industry, stringent compliance with diverse laws and regulations is essential, given the significance of human life.
• A significant portion of the medical professionals are not direct employees of the company.
• Failure to secure, renew, or sustain the requisite statutory and regulatory permits and authorizations vital for business operations could potentially impact the company adversely.

 

 

IPO GMP Today

KK Shah Hospitals Limited IPO GMP is not yet available.

 

Conclusion

The company operates within a highly competitive sector and manages a compact hospital facility with only 26 beds. Furthermore, the company's financial performance is less than stellar, and its operational history is relatively brief. Potential investors are strongly recommended to conduct a thorough analysis before considering an investment, in order to avoid potential losses.

 

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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