Blog

Atmaj Healthcare IPO envisages to raise ₹38.40 crore and comprises entirely of a fresh issue of shares. The Atmaj Healthcare IPO entails the issue of 64 lakh shares at the fixed IPO price of ₹60 per share. The company provides inpatient and outpatient healthcare services through its hospitals in Vadodara, Gujarat. The shares will list on NSE emerge platform.

About Aatmaj Healthcare Limited:

• Aatmaj Healthcare Ltd, was incorporated in 2014 and it runs multi-specialty hospitals under the brand name of Jupiter Hospitals at Vadodara, Gujarat.
• it currently provides in-patient and outpatient healthcare services through its network located in the state of Gujarat.
• It has an aggregate bed capacity of 130 beds and has treated more than 17,000 patients, which includes over 13,000 OPD patients. T
• he group provides a complete suite of check-ups including haemoglobin check, lipid profile check, renal profile, blood sugar, ESR, MCH etc. It also does more complex profiles like the liver profiles.
• The hospital also specializes in nephrology, uro-surgery, and vascular surgery. On the orthopaedics front, the hospital handles joint replacement surgery, post trauma care; apart from obstetrics, gynaecology and neuro and plastic surgery.
• As of December 31, 2022, it had 95 employees on its payroll and 30 consultant doctors. 

• Dr. Tushar Suvagiya, Dr. Subhash Padmani, and Dr. Ravi Apte are the company promoters.

Aatmaj Healthcare IPO: Financials

Atmaj Healthcare IPO: Salient Points

• Promoters holding is 100% at present and shall stand at 73.68% post IPO.
• Aatmaj Healthcare currently owns or operate 4 Hospitals and 4 Retails Pharmacies, out of which 1 Hospital and 1 Retail Pharmacy is owned by it and rest of the Hospitals as well as retail pharmacies operated are maintained by entering into memorandum of understanding (MOU) or on lease basis by entering into leave and license agreement (Agreement) with the owners of the said Premises / Properties.
• Company is presently running a hospital under our trade name “Jupiter” and provides multispeciality services to patients at large. Its use of word “Jupiter” is subject to a license from Jupiter Life Line Hospitals Limited (Licensor) having registered office situated at LBS Marg, Mulund West, Mumbai who themselves have hospitals with this name in and around Mumbai. Company has applied for registration of trademarks in its own name i.e. “Jazz” and “JTP”.
• While its flagship Jupiter Hospital-TCH is a Tertiary Care Hospital, JTP-Hospitals- Muval, JTP-Hospitals- Padra , Tirth Hospital are Secondary Care Hospitals.
• It intends to use IPO [proceeds as follows:

• As of December 31, 2022, Aatmaj Healthcare Ltd. had trade receivables of Rs. 1,528.98 Lakhs which were outstanding for a period less than one year.
• Peers: the company has shown KMC Speciality Hospitals (India) Limited, Kovai Medical Center and Hospital Ltd, Krishna Institute of Medical Sciences Ltd as its peers but they have comparatively much larger revenues.
• Company is associated with the below mentioned organisations for providing regular healthcare check-up facilities to their employees at affordable rates:

• Company has availed term loans / OD from BGG Bank, ICICI Bank, HDFC Bank, Axis Bank etc.
• Its PE ratio is 17.6x (fy23 earnings annualized) and 27.5x (fy22 earnings).
• This is the 1st mandate from lead manager Nirbhay Capital, at least in this fiscal. Thus no track record.
• I may apply in Atmaj Healthcare IPO on last day only after assessing good overall response to IPO. Looks like an average to slightly below average issue and my decision to apply may be heavily influenced by current euphoria in SME market. Listing gains if any may be limited.
• GMP as reported on social media has been steady and may be in Rs. 10+.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.