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Maitreya Medicare IPO entails to raise ₹14.89 Cr. The issue is entirely a fresh issue of 1,816,000 shares. Maitreya Medicare Ltd is a Surat based multi speciality hospital.

About Maitreya Medicare:

• Maitreya Medicare Limited (MML) is a NABH accredited, 125 bedded (including non census beds) multi super speciality hospital incorporated in the year 2019 based out in Surat City.
• It is providing secondary and tertiary healthcare services with core specialities include Cardiology, Urology, Oncology, Laparoscopic Surgery, Neurology, Neurosurgery, Spine Surgery, Nephrology including Dialysis, Gastroenterology, Gastrointestinal surgery, Cardiothoracic Surgery, Oncosurgery, Orthopedic Surgery including joint replacements and Arthroscopic surgeries, Gynecology & High-Risk Obstetrics, Hepatocellular Billary Surgery, Critical Care Medicine etc.
• The hospital boasts of one of its kind premier Cathlab, two modular superspeciality operation theatres with laminar air flow and HEPA filters, well equipped 20 bedded Intensive Care Units (ICU) with ECMO and CRRT and excellent support services like Pathology and Radiology including CT scan.
• It is also currently in the process of developing a multi-super speciality hospital in subsidiary company, Maitreya Hospital Private Ltd, at Valsad, Gujarat, which is designed to accommodate over 125 beds.
• The hospital was founded by Dr. Narendra Singh Tanwar, an eminent and highly skilled cardiologist who has more than 20 years of experience in healthcare industry. Dr. Pranav Rohitbhai Thaker, an ENT surgeon by qualification, has more than 20 years of experience in Hospital Management and Quality of Healthcare Services and Mr. Vimal Natverlal Patel is in the healthcare industry for more than 15 years.

• Manpower

Financials: Maitreya Medicare

Anchor: Maitreya Medicare IPO

Maitreya Medicare IPO: Salient Points

• The healthcare market for West India is expected to grow at a CAGR of 16% from ₹ 1.15 trillion in Fiscal 2022 to ₹ 2.25 trillion by Fiscal 2027.
• Promoter holding will come down from 100% to 72.2% after the IPO.
• Thepromoters have a combined experience of more than two decades in the healthcare industry.
• The hospital strategically focuses on the southern Gujarat healthcare market.
• The hospital intends to utilize the proceeds of the Issue to meet the following objectives:
  • Making investment through Equity in the subsidiary named ‘Maitreya Hospital Private Limited’ for setting up a Hospital at Valsad, Gujarat.
  • Redemption of part of issued Non-Convertible Redeemable Preference Shares
  • Working Capital requirements of the company
  • General Corporate Purposes.
• The company intends to allocate INR 7.5 Cr from the IPO proceeds towards the construction of a new hospital in Valsad.
• The upcoming Valsad hospital is expected to contribute to revenue from next year, which could potentially make it an attractive investment opportunity.
• The average revenue per bed for in-patients stands at INR 23,000. Other paramets are :

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• Decline of revenue in fy23 is due to higher cases in earlier years on account of COVID.
• bed capacity has expanded from 67 beds in 2021 to 125 beds in 2023. There is potential to expand by an additional 75 beds, reaching a total capacity of 200 beds.
• It aims to offer quaternary care facilities such as organ transplants and robotics in the near future.
• Its revenue is diversified across income streams, including insurance companies, third party administrators and corporations, self-payers and Central and State Government schemes. We provide medical services under various government schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY), a flagship scheme of the Government of India which was launched and recommended by the National Health Policy 2017, to achieve the vision of universal health coverage (UHC), MAA Yojna etc.
• It is also empanelled with other Public Sector Units like ESIC, GNFC, ONGC and KRIBHCO etc for their Healthcare needs. Government schemes are an important source of new patient registrations and revenue for them.
• Maitreya Medicare IPO is coming at a PE ratio of 13.1x(fy23 earnings) and12.8x (fy24 annualized earnings)
• I intend to apply in Maitreya Medicare IPO subject to availability of funds due to reasonable valuation based on the results indicated by them.
• GMP as reported on social media has been around Rs. 55.
• GYR Capital Advisors Pvt. Ltd is the Lead Manager to the issue. Past issues handled by them include Basilic Fly Studio Limited, Srivari Spices and Foods Limited, Essen Speciality Films Limited, MCON Rasayan India Limited, Agarwal Float Glass India Limited, Anlon Technology Solutions Limited, Uma Converter Limited, Sabar Flex India Limited, Mafia Trends Limited, Pritika Engggg Components etc.
• Giriraj Stock Broking Private Limited has acted as Market Maker for SME IPOs like Jiwanram Sheoduttrai Industries, Cosmic CRF.
• Present downturn in market and midcaps poses significant risk to SME market.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared 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.