Chandan Healthcare IPO: A Comprehensive Analysis
The Chandan Healthcare IPO is set to open for bidding on 10th February 2025 at 10 AM. This IPO is a book-built issue with a total issue size of ₹107.36 Cr. The company aims to list its shares on NSE SME on 17th February 2025 (tentatively).
Chandan Healthcare IPO Structure
The IPO consists of:
- Fresh Issue: 44.52 lakh shares
- Offer for Sale (OFS): 23.00 lakh shares
IPO Pricing and Key Dates
- IPO Open Date: 10th February 2025
- IPO Close Date: 12th February 2025
- Basis of Allotment: 13th February 2025
- Refund Initiation & Credit of Shares: 14th February 2025
- Listing Date: 17th February 2025
- Price Band: ₹151 – ₹159
- Lot Size: 800 shares
IPO Lead Managers and Registrars
- Book Running Lead Manager: Unistone Capital Private Limited
- Registrar: Kfin Technologies Limited
- Market Maker: R.K. Stock Holding Private Limited
IPO Subscription Categories
| Investor Category | Reservation Required |
|---|---|
| QIB | <50% of total issue |
| Retail Investors | >35% of total issue |
| NII (sNII+bNII) | >15% of total issue |
| Total | 100% |
Chandan Healthcare IPO GMP (Grey Market Premium)
Grey Market Premium (GMP) refers to the premium at which the IPO shares are trading in the unofficial market. As of 7th February 2025, the GMP for Chandan Healthcare IPO stood at ₹14, indicating an estimated listing price of ₹173 per share with an estimated listing gain of 8.81%.
GMP Trends
| GMP Date | GMP (₹) | Cap Price (₹) | Estimated Listing Price (₹) | Estimated Listing Gains (%) |
|---|---|---|---|---|
| 07-02-2025 | ₹14 | ₹159 | ₹173 | 8.81% |
| 06-02-2025 | ₹14 | ₹159 | ₹173 | 8.81% |
| 05-02-2025 | ₹0 | ₹159 | ₹159 | 0.00% |
Bidding Requirements for Chandan Healthcare IPO
| Investor Category | Lots | Minimum Shares | Cap Price (₹) | Investment Amount (₹) |
|---|---|---|---|---|
| Retail (Min) | 1 | 800 | ₹159 | ₹1,27,200 |
| Retail (Max) | 1 | 800 | ₹159 | ₹1,27,200 |
| HNI (Min) | 2 | 1600 | ₹159 | ₹2,54,400 |
Financial Performance of Chandan Healthcare Limited
Chandan Healthcare has demonstrated consistent revenue and profit growth in the last three financial years.
Revenue and Profit Trends
| Financial Year | Revenue (₹ Lakhs) | EBITDA (₹ Lakhs) | Net Profit (₹ Lakhs) | PAT Margin (%) |
|---|---|---|---|---|
| FY 2024 | ₹17,795.86 | ₹2,610.28 | ₹1,635.50 | 9.26% |
| FY 2023 | ₹13,702.92 | ₹927.41 | ₹358.63 | 2.62% |
| FY 2022 | ₹11,991.58 | ₹215.75 | (₹109.26) | (0.91%) |
The company has significantly improved its profitability, indicating strong operational efficiency and cost management.
Technical Analysis of Chandan Healthcare IPO
| Indicator | Value |
|---|---|
| P/E Ratio (Pre-IPO) | 19.44 |
| D/E Ratio | 1.02 |
| EPS (Pre-IPO) | 8.18 |
| Return on Net Worth (RONW) | 39.54% |
| Return on Equity (ROE) | 47.50% |
| Return on Capital Employed (ROCE) | 35.20% |
The high RONW and ROE ratios suggest strong profitability and efficiency in capital utilization.
Objectives of the IPO
Chandan Healthcare Limited intends to utilize ₹107.36 Cr from the IPO to fund expansion and corporate objectives.
| Particulars | Estimated Amount (₹ Lakhs) |
|---|---|
| New Diagnostic Centre (Jankipuram, Lucknow) | 3,281.58 |
| Central Reference Lab (Ayodhya, UP) | 710.23 |
| Central Reference Lab (Ashiyana, Lucknow, UP) | 710.11 |
| General Corporate Purposes | To be determined |
Company Overview: Chandan Healthcare Limited
Chandan Healthcare operates testing laboratories across North India, offering 1,496 different tests including pathology and radiology services. As of December 2024, the company employs:
- 15 Radiologists
- 23 Pathologists
- 161+ Qualified Professionals (clinicians, technicians, and operators)
The company follows a cluster and collection points model, optimizing logistics and efficiency in its lab testing processes.
Investment Risks and Considerations
While Chandan Healthcare has displayed strong financial performance and growth potential, investors must consider:
- Market Volatility: SME IPOs can experience high fluctuations post-listing.
- Competitive Healthcare Landscape: The diagnostic sector has several established players.
- Regulatory Risks: The healthcare industry is subject to strict government regulations.
How to Apply for Chandan Healthcare IPO
To apply, follow these steps:
- Research: Analyze risks, benefits, and investment potential.
- Open a Demat Account: Use any SEBI-registered platform.
- Place a Bid: Ensure the bid aligns with the lot size (800 shares minimum).
- Payment & Allotment: Approve the payment request and track the allotment status.
Final Thoughts
Chandan Healthcare IPO presents a high-growth potential investment opportunity, backed by solid financials and expansion plans. The GMP trends, technical indicators, and revenue growth suggest a strong debut on NSE SME. However, investors should conduct thorough research before making an investment decision.
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