Chandan Healthcare Limited is coming up with an IPO consisting of a fresh issue of 46,00,000 shares and an offer to sell 22,99,936 existing shares with a face value of ₹10 each. The company aims to utilise the funds from the net proceeds to set up a new flagship diagnostic centre, a new central reference laboratory, and other general corporate purposes.

Chandan Healthcare IPO – Important Dates

Chandan Healthcare Limited IPO – Company Profile

Chandan Healthcare Limited, established in September 2003, specialises in operating state-of-the-art laboratories that offer comprehensive pathological investigations. The Company runs a diagnostic network in North India with pathology and radiology testing services.

The company has a track record of profitability and consistent financial performance. The company primarily provides diagnostic services and ad hoc sales of consumables like X-ray films and reagents. 

Their services encompass biochemistry, haematology, histopathology, microbiology, and immunology. Additionally, it provides an extensive array of radiology services, including CT scans, X-rays, and MRIs.

Chandan Healthcare Ltd IPO Fundamental Analysis

Chandan Healthcare Limited’s financial analysis reveals a growing performance. Revenue has increased, with increasing profitability and EPS, along with an increase in total assets and equity and improved inventory turnover, indicating potential operational efficiency. 

• Revenue Trend: The revenue increased from ₹13,688.94 lakhs in March 2023 to ₹17,659.01 lakhs in March 2024. 
• Equity and Liabilities: Equities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹358.63 lakhs in March 2023 to ₹1,635.51 lakhs by March 2024. 
• Earnings per Share (EPS): The basic EPS has increased from ₹1.68 in March 2023 to ₹8.14 by March 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has increased from 15.03% to 20.79%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating increased liquidity in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s an increase in the Inventory Turnover Ratio, which might suggest faster sales or efficient inventory management.

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Chandan Healthcare IPO Financial Analysis

Read more about Chandan Healthcare IPO GMP

Chandan Healthcare Limited IPO Peer Comparison

Chandan Healthcare Limited shows a steady performance with the highest RONW among its competitors. Metropolis Healthcare Ltd has the highest PE when compared to others, Dr Lal Pathlabs Ltd has the highest revenue, NAV, and EPS among its peers and  Vijaya

Diagnostic Ltd shows stable growth and consistent results.

Chandan Healthcare Ltd IPO Objective

The main objective of Chandan Healthcare Ltd IPO is to set up a new flagship diagnostic centre, a new central reference laboratory, and other general corporate purposes.

1. Setting up of a new Flagship Diagnostic Centre in Jankipuram, Lucknow, Uttar Pradesh: The company intends to utilise Rs 3,281.58 lakhs to set up a leading medical diagnostic facility that offers high-quality healthcare services and diagnostic tests for the local community and the surrounding areas, with the potential for future growth and expansion.

2. Setting up of a new Central Reference laboratory at Ayodhya, Uttar Pradesh: The company intends to utilise Rs. 710.23 lakhs to set up a centralised, state-of-the-art facility that provides advanced diagnostic services and high-precision testing.

3. Setting up of a new Central Reference laboratory at Ashiyana, Lucknow, Uttar Pradesh: The company intends to utilise Rs. 710.11 lakhs to set up a centralised, state-of-the-art facility that provides advanced diagnostic services and high-precision testing.

4. General corporate purposes: The Company proposes to deploy the balance proceeds towards general corporate purposes as approved by their management from time to time, subject to such utilisation not exceeding 25% of the gross proceeds, in compliance with the SEBI ICDR Regulations.

Chandan Healthcare IPO Risks And Challenges

Chandan Healthcare Limited’s risks include chances of failure or interruptions at flagship centres, geographic focus only in 2 states, their dependence on third-party premises, and pressure to innovate.

• Any interruptions at their flagship diagnostic centres may affect their ability to process diagnostic tests, which in turn may adversely affect their business, results of operations, and financial condition.

• Their operations are only focused on Uttar Pradesh and Uttarakhand, and any loss of business in such region could have an adverse effect on their business.

• Failure to introduce new tests, services, and technologies or acquire advanced or enhanced equipment could negatively affect their business.

• Their current and proposed business operations are being conducted on premises owned by and leased from third parties. Their inability to continue operating from such premises or to seek renewal or extension of such leases may adversely affect their business.

Chandan Healthcare Ltd IPO – Industry & Market Potential

The hospital industry in India, accounting for 80% of the total healthcare market, is witnessing a huge investor demand from both global as well as domestic investors. India ranks 10th in the Medical Tourism Index (MTI) for 2020-2021 out of 46 destinations in the world.

India’s hospital market was valued at US$ 98.98 billion in 2023 and is projected to grow at a CAGR of 8.0% from 2024 to 2032, reaching an estimated value of US$ 193.59 billion by 2032. The diagnostics industry in India is currently valued at $ 4 Billion.

The healthcare sector, as of 2024, is one of India’s largest employers, employing a total of 7.5 million people. The demand for Indian healthcare professionals is expected to double nationally and globally by 2030 due to a shortage of healthcare workers in India. 

Chandan Healthcare Limited IPO – Type of Offer

Chandan Healthcare Limited plans a fresh issue of 46,00,000 shares, with a face value of Rs. 10 per share, to set up a new flagship diagnostic centre, a new central reference laboratory, and other general corporate purposes. Additionally, the company proposes an offer to sell 22,99,936 existing shares

1. Fresh Issue: The company will issue 46,00,000 new shares to raise capital, set up a new flagship diagnostic centre, set up a new central reference laboratory, and for other general corporate purposes
2. Offer for sale: Chandan Healthcare Limited is offering to sell 22,99,936 existing shares with a face value of Rs. 10 per share. The following are the details of the existing shareholders, who are also the promoters selling the shares.

Chandan Healthcare IPO Offer Size

The offer size of Chandan Healthcare Limited consists of a fresh issue of 46,00,000 shares and an offer to sell 22,99,936 existing shares with a face value of Rs. 10 per share. The company aims to set up a new flagship diagnostic centre and a new central reference laboratory and fund other general corporate purposes.

Chandan Healthcare Limited IPO Allotment Structure

Chandan Healthcare Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for the Chandan Healthcare IPO?

To apply for the Chandan Healthcare IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Chandan Healthcare Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Chandan Healthcare IPO Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Chandan Healthcare IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Chandan Healthcare Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Chandan Healthcare Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Chandan Healthcare Limited IPO:

● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Chandan Healthcare Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Chandan Healthcare Ltd IPO Offer Registrar

The registrar for the Chandan Healthcare Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

KFin Technologies Limited

Selenium Tower-B, Plot 31 & 32, Gachibowli, 

Financial District, Nanakramguda, Serilingampally,

Hyderabad – 500 032, Telangana

Telephone: +91 40 6716 2222

Email: [email protected]

Website: www.kfintech.com

Chandan Healthcare IPO – FAQs

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.