Healthcare services provider Shanmuga Hospital Limited is set to make its market debut with an initial public offering (IPO), valued at ₹20.62 crores, an entirely fresh issue of 38,18,000 lakh shares. The subscription window opens on February 13, 2025, 2025, and draws to a close on February 17, 2025. Investors can track this company’s market journey as it prepares for its listing on the BSE SME platform, scheduled for Thu, February 20, 2025.
Shanmuga Hospital Limited presents a public offering, with equity shares of ₹10 face value being offered with an issue price of ₹54 per share and a lot size of 2,000 shares. Interested retail investors can participate with a minimum investment of ₹1,08,000 to buy 1 lot, while High Net-worth Individuals (HNI) are invited to participate with a minimum subscription of ₹2,16,000 (2 lots). The company has planned a swift post-subscription timeline, with share allotment notifications slated for February 18, 2025, followed by its debut on the BSE SME platform on February 20, 2025. As this healthcare service provider embarks on its public market journey, investors stand at the cusp of an emerging opportunity in India's healthcare sector.
Shanmuga Hospital Limited IPO is a fundraise worth ₹20.62 crores comprising purely of a fresh issue with 38,18,000 shares reserved for the market maker Black Fox Financial Private Limited Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from February 13, 2025, to February 17, 2025, providing an opportunity for investors looking to gain a stake in the healthcare sector.
| Shanmuga Hospital IPO date | February 13, 2025 to February 17, 2025 |
| Fixed price | ₹54 per share |
| Face value | ₹10 per share |
| Lot size | 2000 shares |
| Issue type | Fixed Price IPO |
| Fresh issue size | 38.18 lakh shares amounting to ₹20.62 crores |
| Total issue size | 38,18,000 shares amounting to ₹20.62 crores |
| Listing at | BSE SME |
| Market maker portion | 1,92,000 shares - Black Fox Financial Pvt Ltd |
| Shareholding post-issue | 1,36,13,000 shares |
| Shareholding pre-issue | 97,95,000 shares |
The Shanmuga Hospital Limited IPO opens for subscription on February 13, 2025, and closes on February 17, 2025, with allotment scheduled for February 18, 2025.
| IPO open date | February 13, 2025 (Thursday) |
| IPO close date | February 17, 2025 (Monday) |
| Basis of allotment | February 18, 2025 (Tuesday) |
| Initiation of refunds | February 19, 2025 (Wednesday) |
| Credit of shares to Demat account | February 19, 2025 (Wednesday) |
| Listing date on BSE SME | February 20, 2025 (Thursday) |
| Cut-off time for UPI mandate confirmation | 5 PM on February 17, 2025 (Monday) |
Established in 2020, Shanmuga Hospital Limited is a multispecialty healthcare facility equipped with advanced medical technology and a 151-bed capacity, catering to the healthcare needs of patients from surrounding regions. Accredited by NABH and NABL, the hospital is committed to high-quality medical care, covering prevention, treatment, and rehabilitation. Spanning 45,311 square feet across two blocks and three floors, the hospital is located at 51/24 Saradha College Road, Salem, Tamil Nadu, and offers both inpatient (IPD) and outpatient (OPD) services with a dedicated team of professionals.
The hospital operates Shanmuga Pharmacy, providing medications for OPD and IPD patients, and Shanmuga Diagnostics, offering reliable pathology services for accurate medical assessments. Additionally, Shanmuga Clinics extend specialized consultations and treatments within Salem, with critical cases referred to the main hospital for advanced care. The hospital provides a wide range of medical services, including oncology, general surgery, orthopaedics, cardiology, general medicine, paediatrics & neonatology, neurology, endocrinology & diabetes, plastic surgery, and respiratory medicine. As of August 31, 2024, the hospital had a medical team of 72 doctors, comprising 9 resident doctors, 7 junior doctors, 28 senior consulting doctors, and 28 consulting visiting doctors.
The Issue's objectives include funding capital expenditure for acquiring additional medical equipment and meeting general corporate purposes.
The Shanmuga Hospital Limited IPO has caught the eyes of investors as the company reportedly saw an annual rise of 43.39% in its revenue and 5.26% yearly increase in the Profit After Tax (PAT), during the financial year ended March 31, 2024.
As of September 30, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 30.71%, Return on Capital Employed (ROCE) at 35.89% and Return on Net-Worth (RoNW) stands at 30.71%, and the PAT Margin was 12.13%. The Price to Book Value was 3.09. The company’s market capitalisation is ₹73.51 crore.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 24.83 | 43.39 | 39.5 | 41.47 |
| Assets | 36.53 | 33.92 | 23.05 | 10.65 |
| Net Worth | 19.53 | 17.13 | 11.82 | 7.06 |
| Profit After Tax | 2.39 | 5.26 | 4.76 | 6.72 |
| Reserves & Surplus | 9.73 | 7.34 | 11.74 | 6.98 |
| Total Borrowings | 9.76 | 9.02 | 7.65 | - |
Amount in ₹ crores / lakhs
The pre-IPO EPS is at ₹5.37 while the post-IPO EPS will be ₹4.75. Similarly, the pre-IPO Price to Earnings ratio is 10.05 and will become 11.36 post-IPO.
The company has a strong presence in oncology, supported by advanced medical equipment such as LINAC, MRI, and Cathlab, enabling high-quality specialized care. Its promoters bring over four decades of experience in healthcare, ensuring strategic growth and operational stability.
With affordable healthcare services tailored to the regional population and strategic tie-ups with government and private insurance companies, the hospital is well-positioned to serve a broad patient base. Additionally, an experienced management team and motivated workforce contribute to maintaining quality assurance and strong customer relationships.
The company faces legal proceedings involving its promoters, directors, and group companies, which could impact business operations and investor confidence. Its limited operating history since incorporation in 2020 makes it difficult for investors to assess long-term growth potential.
Dependence on key healthcare professionals, especially those on consultancy agreements, poses a risk to service continuity. Furthermore, delays in procuring essential medical equipment, regulatory changes in healthcare policies, high reliance on government health schemes, and past instances of negative cash flow may affect financial stability and operational efficiency.
Investing early in Shanmuga Hospital Limited’s IPO offers an opportunity to be part of its growth in the healthcare sector. However, potential investors should evaluate key factors such as the company’s financial health, operational history, industry trends, and expansion strategy while aligning the investment with their own goals and risk tolerance. Reviewing the offer document and seeking professional advice is recommended for making an informed investment decision.
What is the Shanmuga Hospital Limited IPO?
The Shanmuga Hospital Limited IPO is an BSE SME offering consisting of 38.18 lakh equity shares with a face value of ₹10, aiming to raise ₹20.62 crore. The issue price has been set between ₹54 per share, with a minimum order quantity of 2,000 shares. This IPO will be open for subscription from February 13, 2025, to February 17, 2025. Finshore Management Services Limited is the book-running lead manager, Integrated Registry Management Services Private Limited is the registrar while Black Fox Financial Private Limited.is the market maker.
When will the Shanmuga Hospital IPO open?
The Shanmuga Hospital Limited IPO will open for subscription on February 13, 2025, 2025, and will close on February 17, 2025.
When is the Shanmuga Hospital IPO listing date?
The tentative listing date for the Shanmuga Hospital Limited IPO is Thursday, February 20, 2025.
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