Shalby Hospital IPO Review: Price, Subscription, Listing, GMP

Shalby Hospital IPO is set to open for subscription on December 5, with a price band of Rs 245-248 per share.

Company Details: Shalby Limited is Ahmedabad, Gujrat based one of the leading multi-specialty chain of hospitals in India. Shalby hospitals are well known for its orthopaedic services. Shalby Hospital had a 15% market share of all joint replacement surgeries conducted by private corporate hospitals in India in 2016.

Shalby hospitals operate across five states and Outpatient Clinics operate across 53 cities in 16 states in India.Since March 2007, Shalby hospitals have conducted an aggregate of 84,579 surgeries, and provided healthcare services to an aggregate of 923,441 patients, consisting 121,576 inpatients and 801,865 outpatients.

Shalby Hospital IPO details:

Issue Open: Dec 5, 2017 – Dec 7, 2017
Issue Type: Book Built Issue IPO
Issue Size:
› Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to Rs 480.00 Cr
Face Value: Rs 10 Per Equity Share
Issue Price: Rs 245 – Rs 248 Per Equity Share
Market Lot: 60 Shares
Minimum Order Quantity: 60 Shares
Listing At: BSE, NSE

Objects of the Issue :-
1. Repayment or prepayment in full, or in part of certain loans availed by the Company;
2. Purchase of medical equipment for existing, recently set up, and upcoming hospitals;
3. Purchase of interiors, furniture, and allied infrastructure for upcoming hospitals; and
4. General corporate purposes.

Strengths of Company / Reasons to invest in Shalby Hospital IPO

1. It is one of the largest players in the joint replacement unit with ~15% market share among corporate hospitals across India.

2. In India, nearly 23% of the population falls in the age group of 45 years and above, thepopulation group accounting for nearly 95% of joint replacement surgeries.

3. They have an integrated and scalable business model enabling them to provide comprehensive healthcare solutions through a network of multi-specialty hospitals,Outpatient Clinics, and SACE.

4. They operate and manage hospitals on a revenue sharing basis, by adopting an asset light model. They associate with third party hospitals on a revenue sharing and/or professional fee basis to offer orthopaedic healthcare services under SACE.

Risk Factors / Reasons not to invest in Shalby Hospital IPO

1. A significant portion of of the company’s revenue is currently generated from two hospitals SG Shalby and Krishna Shalby. Further, a majority of hospitals are located in the state of Gujarat.

2. The firm is dependent on one field of specialty for a substantial portion of our revenue, i.e. orthopaedics.

3. Discontinuation of association by doctors and other healthcare professionals with the hospitals for any reason, and their inability to retain them may adversely affect the business.

4. Change in government policies that relate to patients covered by government schemes could impact the hospitals

revenue.

5. Stiff competition from other hospitals and healthcare facilities that offers same services within the hospital region.

Shalby Hospital IPO grey market premium on 29th November

Rs. 50 – Rs. 55

Disclaimer : We are not involve in buying and selling of IPO forms in IPO Grey market.Study the fundamentals of the company before applying for the IPO.