Shalby Hospital IPO Review – Should You Invest?

Shalby Hospital (Shalby Limited) was founded in 1994 by Mr Vikram Shah when knee replacement surgery was in a nascent stage in India. From 360 degree solution provider in providing orthopedic treatment to establishing themselves as a spine clinic, Shalby Hospital has played an integral part of India’s growth story. And now this multispecialty hospital chain is all set to launch an IPO. Here are the details for the same:-

Shalby Hospital IPO Review

Shalby Hospital IPO will open on 5th December 2017 and through it the hospital plans to raise Rs 504.8 crore. The company has set the price band of Rs 245-248 per share for the IPO, which values at Rs 2,172-2,198 crore. The Shalby limited IPO offer will end on 7th December 2017.

According to the reports, the promoter Mr. Vikram Shah Burman plans to sell one million shares in the said IPO, thus raising the figure to Rs 510 crore. Edelweiss, IDFC and IIFL Holdings will manage the IPO of Shalby Hospital.

Where will the proceeds be used?

Shalby will use the proceeds in purchasing of medical equipments, setting up of new hospitals, purchase furniture and allied infrastructure for its upcoming hospitals and to meet corporate expenses. The company has grown from strength to strength and now it has attained forte in the various niche like joint replacement surgery, spine surgery, neurosurgery, cardiac surgery and sports inquiry care.

Financials of the company

Shalby recently reported the consolidated net profit of 45.87 on a revenue from operations of Rs 240.58 crore. The total debt stands at Rs 70.27 crore as on December 2016. Have a look!

Should you invest?

On the face of it, investing in this IPO will be a sensible financial decision. The expanding business, clinical research trials and new initiatives to improve operational efficiencies indicate that this IPO will reap good returns. The lead managers are also confident about investors appetite.

 

Disclaimer: This is author’s personal opinion and investors are advised to perform their research before investing.