Asarfi Hospital is IPO is looking to raise Rs 26.94 crore via entirely fresh issue of shares and will be selling its shares in the range of Rs 51-52. The issue consists of sale of 51.80 lakh fresh equity shares with a lot size of 2,000 equity shares. The Company operates one 250 bedded Multi-Speciality Hospital in Dhanbad, Jharkhand.
About Asarfi Hospital Limited :
- Asarfi Hospital Limited was incorporated in the year 2005 by Nayan Prakash Singh and Harendra Singh in the name of their mother “Asarfi Devi” to provide healthcare facilities to the people of Jharkhand.
- Asarfi Hospital Limited, is a 250 bedded multi-speciality hospital, which is serving people for over one and half decade by providing healthcare services in Dhanbad, Jharkhand.
- It is accredited by National Accreditation Board for Testing and Calibration Laboratories
- The hospital located at Dhanbad, Jharkhand is having departments/services like Cardiology, Neurosciences, General Medicine, Paediatrics & Neonatology, Obstetrics & Gynaecology, General Surgery, Gastroenterology, Orthopaedics Plastic Surgery & Cosmetics, Oncology, Nephrology, Urology, Ophthalmology, ENT, Day Care Services, Dental, Physiotherapy, Emergency, Nutrition & Dietetics, Anaesthesiology & Critical Care, Radiology, Pulmonology, Pain Management etc. among other healthcare services.
- The hospital has a full-fledged high dependency unit, Emergency Department, Outpatient consultation, CCU, ICU, NICU, SICU, Labor room, Endoscopy room, Neurosurgery and Cardiac unit. The Diagnostic Centre features laboratory and imaging equipment like the Open X-Ray, Ultrasound, CT scan. The Hospital offers both inpatient and outpatient care which covers a wide range of Medical and Surgical specialties.
- Harendra Singh, Nayan Prakash Singh, Udai Pratap Singh, Madhuri Singh, and Nitu Singh are the Promoters of the company.
Asarfi Hospital IPO: Financials
Anchor Investors
Asarfi Hospital IPO: Salient Points
- Promoters holding is 83.03% at present and shall get diluted to 61.17%.
- Dhanbad-based Asarfi Hospital is a 250 bedded multi-specialty hospital with 23 departments. It has 70 doctors and 242 nursing staff & 481 other staff.
- A 50 bedded dedicated Cancer Hospital is currently under construction in Dhanbad
- The Hospital is empaneled with many Government Agencies, Corporate Organizations for providing regular healthcare facilities to their employees. The company is also empaneled with several Insurance companies. It is empaneled with Coal India Limited. BEML. BSNL, NHAI, South Easr Railways etc.
- The average revenue per occupied bed of Rs 20,068 with average bed occupancy rate of 65 per cent and average length of stay 4 days in FY23.
- Cardiology and Neurosciences departments contributed towards 43 per cent of the revenue.
- The listed peers mentioned by the company in RHP are much larger in size but fall in almost same segment. They are quoting at PE x as indicated below
- Anchor response has been good.
- Its PE ratio is 13x (fy23 earnings), 264x (FY22 earnings).
- The lead book running manager is Hem Securities. The IPOs lead managed by them have given a good return to the investors. These include names like Kaka Industries, Green Chef, Vasa Denticity, Chaman Mettalics, Systango Technologies, Labelkraft, Concord Control Systems Limited, Earthstahl & Alloys Limited, Silicon Rental Solutions Limited, Krishna Defence and Allied Industries, Prevest Denpro Limited etc
- Hem Finlease Ltd is the market maker for the issue.
- The last Hospital SME stock, Vadodara based Aatmaj Healthcare ended in losses for the investors on listing and thereafter. Main Board listed Hospital stock continue to do well. Even as this hospital is from eastern region which traditionally enjoys lower valuations , the offerings appears at a reasonable valuations
- I intend to apply in Asarfi Hospital IPO subject to availability of funds.
- GMP as reported on social media has been steady or rising and may be Rs. 30.
- SME IPO are quite illiquid and volatile and exit options sometimes is delayed.
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.