Chandan Healthcare Limited, established in September 2003, operates a network of diagnostic centers across North India, offering both pathology and radiology testing services. As of August 31, 2024, the company manages one flagship laboratory, seven central laboratories, 26 satellite centers, and over 300 collection centers across more than 15 cities in Uttar Pradesh and over 10 cities in Uttarakhand. Their test portfolio includes 1,118 tests across various specialties.The company is launching its Chandan Healthcare Ltd IPO with the following details:
Chandan Healthcare Ltd IPO Key Details:
- IPO Opening Date: February 10, 2025
- IPO Closing Date February 12, 2025
- Basis of Allotment Finalization: February 13, 2025
- Refunds Initiation: February 14, 2025
- Credit of Shares to Demat: February 14, 2025
- Listing Date on NSE SME: February 17, 2025
- Issue Size: The IPO aims to raise approximately ₹107.36 crores, comprising a fresh issue of ₹70.79 crores and an offer for sale of up to 22,99,936 equity shares with a face value of ₹10 each.
- Price Band: Set between ₹151 to ₹159 per share.
- Lot Size: The minimum order quantity is 800 shares, amounting to an application of ₹1,27,200 at the upper price band.
- Listing Date: Expected on February 17, 2025, on the NSE SME platform.
The IPO allocation is divided into 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII).
Financially, Chandan Healthcare reported a profit of ₹16.36 crores in 2024, up from ₹3.59 crores in 2023, indicating significant growth.
As of February 7, 2025, the Grey Market Premium (GMP) for the IPO was noted at ₹14.
- Setting up a new flagship diagnostic center in Jankipuram, Lucknow, Uttar Pradesh.
- Establishing new central reference laboratories in Ayodhya and Ashiyana, Lucknow, Uttar Pradesh.
- General corporate purposes.
Investors can apply for the IPO online using either UPI or ASBA as payment methods. The finalization of the basis of allotment is expected on February 13, 2025, with shares credited to demat accounts by February 14, 2025.
For more detailed information, you can refer to the company’s Draft Red Herring Prospectus (DRHP) and consult with financial advisors before making investment decisions.
About Chandan Healthcare Ltd
About the Company:
Chandan Healthcare Limited is a healthcare services provider specializing in diagnostic and pathology testing across North India, particularly in Uttar Pradesh and Uttarakhand. Established in September 2003, the company has grown into a significant player in the diagnostic services industry.
Business Model:
The company operates a network of diagnostic centers, providing pathology and radiology testing services. Their services cater to hospitals, laboratories, and direct consumers. They have also established collection centers to make testing more accessible to patients.
Presence and Infrastructure:
- 1 flagship diagnostic laboratory
- 7 central laboratories
- 26 satellite centers
- 300+ collection centers
- Spread across 15+ cities in Uttar Pradesh and 10+ cities in Uttarakhand
Test Portfolio:
Chandan Healthcare offers a wide range of over 1,118 diagnostic tests, covering areas such as:
- Hematology
- Biochemistry
- Microbiology
- Molecular diagnostics
- Radiology imaging
Revenue and Financial Performance:
The company has shown strong financial growth, with a significant increase in revenue and profitability.
- FY 2024 Profit: ₹16.36 crores
- FY 2023 Profit: ₹3.59 crores
This indicates a rapid expansion and improved operational efficiency.
Future Expansion Plans:
The company plans to use proceeds from its IPO to:
- Set up a new flagship diagnostic center in Lucknow (Jankipuram)
- Establish two central reference laboratories in Ayodhya and Ashiyana (Lucknow)
- Expand its network and improve its technology infrastructure
Key Highlights:
- One of the leading diagnostic service providers in Uttar Pradesh and Uttarakhand
- Strong growth in profitability over recent years
- Aims to expand its network and technological capabilities
- Preparing for a listing on the NSE SME exchange
Chandan Healthcare Ltd IPO Lot Size
Here is the Chandan Healthcare Ltd IPO Lot Size details in a table format:
| Investor Category | Lot Size (Shares) | Investment Amount (₹) (at ₹159 per share) |
| Retail Investors (RII) | 800 | ₹1,27,200 |
| High Net-worth Individuals (HNI/NII) | 1,600 (2 lots) | ₹2,54,400 |
| Small HNI (sHNI) | 3,200 (4 lots) | ₹5,08,800 |
| Large HNI (bHNI) | 16,000 (20 lots) | ₹25,44,000 |
Chandan Healthcare Ltd IPO – Promoter Holding Details
| Category | Holding (Pre-IPO) | Holding (Post-IPO) |
| Promoters & Promoter Group | 99.99% | 73.44% |
| Public Shareholding | 0.01% | 26.56% |
Promoters of Chandan Healthcare Ltd:
- Dr. Harsh Vardhan Agarwal (Founder & Managing Director)
- Dr. Shweta Agarwal
Chandan Healthcare Limited – Financial Information (₹ in Crores)
| Financial Year | Revenue | EBITDA | Profit After Tax (PAT) | EBITDA Margin (%) | PAT Margin (%) |
| FY 2022 | ₹76.84 | ₹8.21 | ₹1.29 | 10.69% | 1.68% |
| 2023 | ₹78.14 | ₹12.39 | ₹3.59 | 15.86% | 4.59% |
| 2021 | ₹88.87 | ₹28.62 | ₹16.36 | 32.21% | 18.41% |
Key Financial Highlights:
- Steady Revenue Growth: Increased from ₹76.84 Cr (FY22) to ₹88.87 Cr (FY24).
- Strong Profitability: PAT surged from ₹1.29 Cr (FY22) to ₹16.36 Cr (FY24), indicating improved efficiency.
- Higher Margins: EBITDA Margin rose from 10.69% to 32.21%, showing strong operational performance.
- Consistent Growth in Diagnostic Services: Expansion of testing centers has contributed to increased revenue.
Chandan Healthcare Limited – Key Performance Indicators (KPIs)
| Key Performance Indicator (KPI) | FY 2022 | 2023 | 2024 | Trend 📈 |
| Revenue (₹ Cr) | 76.84 | 78.14 | 88.87 | 📈 Increasing |
| EBITDA (₹ Cr) | 8.21 | 12.39 | 28.62 | 📈 Strong Growth |
| EBITDA Margin (%) | 10.69% | 15.86% | 32.21% | 📈 Improved Efficiency |
| Profit After Tax (₹ Cr) | 1.29 | 3.59 | 16.36 | 🚀 Rapid Growth |
| PAT Margin (%) | 1.68% | 4.59% | 18.41% | 📈 Higher Profitability |
| Return on Net Worth (RoNW) (%) | 3.72% | 8.47% | 28.79% | 📈 Strong Returns |
| Debt-to-Equity Ratio | 0.18 | 0.14 | 0.05 | 📉 Reduced Debt |
| Total Assets (₹ Cr) | 56.25 | 63.07 | 90.88 | 📈 Growing Asset Base |
Key Takeaways:
- Revenue Growth: Consistent increase in revenue over the last three years.
- Improved Profit Margins: EBITDA and PAT margins have significantly improved.
- Strong Return on Equity: RoNW jumped to 28.79% in FY 2024, showing high efficiency.
- Low Debt: The debt-to-equity ratio dropped to 0.05, indicating a strong financial position.
Chandan Healthcare Ltd IPO Growth
Here’s a summary of Chandan Healthcare Ltd’s growth with a table for better clarity:
| Category | Details |
| Service Expansion | -Diagnostic Centers in UP, Uttarakhand, Rajasthan -Retail Pharmacies in UP, Uttarakhand, Delhi -200-bed Multi-Specialty Hospital in Lucknow |
| Financial Growth (as of Dec 31, 2024) | – Total Assets: ₹170.06 crore – Revenue: ₹167.99 crore – Profit After Tax: ₹17.42 crore – Net Worth: ₹41.09 crore – Reserves and Surplus: ₹34.31 crore – Total Borrowings: ₹51.92 crore |
| Patient Reach | Over 50 million patients served, 3 million annually |
| Infrastructure Development | – Planned 100-bed Multi-Super-Specialty Hospital in Haldwani, Uttarakhand (by October 2024) |
This table highlights key growth areas and performance indicators for Chandan Healthcare Ltd.
Chandan Healthcare Ltd Returns
Here’s a table showing the returns for Chandan Healthcare Ltd (assuming these are the returns based on available information about its IPO and financial performance):
| Category | Details |
| IPO Information | – Total Funds Raised: ₹107.36 crore – Fresh Issue: 67.52 lakh equity shares |
| Return on Investment (ROI) | – As per the latest financial data, the company has posted a profit after tax of ₹17.42 crore for FY 2024. – Expected Growth: Strong, with expansion plans for new healthcare centers and hospitals. |
| Financial Returns (FY 2024) | – Revenue: ₹167.99 crore – Net Profit: ₹17.42 crore – Profit Margin: 10.4% |
| Earnings Per Share (EPS) | Information not directly available, but can be inferred from the IPO details. |
This is an overview of the returns based on Chandan Healthcare’s IPO and recent financial performance. The company’s growth prospects are expected to drive positive returns in the future.
Strengths of Chandan Healthcare Ltd IPO
1) Strong Growth in Financials:
Chandan Healthcare has demonstrated impressive growth in revenue, EBITDA, and profit after tax (PAT) over the past few years.
- FY 2024 PAT: ₹16.36 Cr (up from ₹3.59 Cr in FY 2023), indicating robust profitability.
2) Expanding Network of Diagnostic Centers:
The company operates a vast network across Uttar Pradesh and Uttarakhand, with over 300 collection centers and 26 satellite centers. This widespread presence provides a solid platform for continued growth and market penetration.
3) Focus on Quality and Technology:
Chandan Healthcare offers a broad range of over 1,118 diagnostic tests, including advanced molecular diagnostics. The company has consistently invested in upgrading its technology and infrastructure to offer accurate and reliable testing services.
4) Strong Market Demand for Diagnostic Services:
The healthcare and diagnostics sector is growing rapidly, driven by rising healthcare awareness, population growth, and an increasing number of people seeking preventative medical services. This puts Chandan Healthcare in a favorable market position.
5) Low Debt-to-Equity Ratio:
The company maintains a low debt-to-equity ratio, indicating a stable and risk-conscious financial structure, which is attractive to investors.
Risks of Chandan Healthcare Ltd IPO
1) Dependency on Regional Markets:
Chandan Healthcare’s operations are concentrated mainly in Uttar Pradesh and Uttarakhand. This geographic concentration makes the company vulnerable to regional economic slowdowns or changes in government policies affecting healthcare services.
2) Intense Competition:
The diagnostic services industry is highly competitive, with several well-established national and local players. Increased competition could impact profit margins and market share for Chandan Healthcare.
3) Regulatory and Compliance Risks:
The healthcare and diagnostic sectors are highly regulated. Any changes in healthcare policies or regulatory frameworks at local, state, or national levels could impact operations and profitability.
4) Potential Risks of Expansion:
Chandan Healthcare is planning expansion and infrastructure development with IPO proceeds. However, there is always a risk associated with the execution of these projects, including delays or cost overruns, which could affect the expected benefits of the IPO.
5) Dependence on Key Personnel:
As with many businesses, the success of Chandan Healthcare is closely tied to the vision and expertise of its key promoters and management. Any changes or disruptions in leadership could pose a risk to the company’s growth trajectory.
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