To serve orthopaedic patients in India, over 10,000 orthopaedic surgeons are registered with the Indian Orthopaedic Association (IOA); another estimated 10,000 orthopaedic surgeons are not registered with the IOA. Hence, the ratio of orthopaedic surgeons to total population of India is around 1 per 66,300 people. There are only 1.4 to 1.9 joint replacement surgeons per 100,000 people above 45 years of age in India. This skewed ratio shows the need for such surgeons and requirement of efficient facilities. Incorporated in 2004, Shalby Limited is Ahmedabad, Gujrat based one of the leading multi-specialty chain of hospitals in India.
Company provides inpatient and outpatient healthcare services through 8 fully operational hospitals with an aggregate operational bed count of 781 beds. Company also provides outpatient consultative healthcare services through 3 hospitals and 68 Outpatient Clinics. Company has 8 shared surgery centers within third party hospitals.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. Apart from a focus on orthopaedics, Shalby hospitals provide advanced levels of care across various specialties such as neurology, cardiac care, critical care, oncology, and nephrology.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 hospitals operate across five states and Outpatient Clinics operate across 53 cities in 16 states in India. Company also has six Outpatient Clinics and one Shalby Arthroplasty Centre of Excellence (SACE) in Africa, and two SACE in the UAE.
Why you should apply for Shalby IPO:
1) Company Financials:
2) Hospital Chain Details:
3) Valuation and peer comparison:
*Market price for calculating P/E is closing price of Nov. 29, 2017
5) Objects of the Issue:
The Offer comprises of the Fresh Issue and the Offer for Sale.The company proposes to utilize the Net Proceeds from the Fresh Issue towards the following objects: 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. The company will not receive any proceeds from the Offer for Sale.
»» 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 › Offer for Sale of 1,000,000 Equity Shares of Rs 10 aggregating up to Rs [.] 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
We see that the overall healthcare and hospitality industry has good prospects. The company’s valuations are fair and thus, considering all these factors, investors can subscribe to the IPO as long-term investment.