Shanmuga Hospital Limited, a multispecialty hospital based in Salem, Tamil Nadu, has announced its Shanmuga Hospital Ltd IPO with the following details:
Key Details
- IPO Opening Date: February 13, 2025
- IPO Closing Date: February 17, 2025
- Allotment Date: February 18, 2025
- Issue Type: Fixed Price Issue
- Issue Size: 38.18 lakh equity shares, aggregating to ₹20.62 crores
- Face Value: ₹10 per share
- Issue Price: ₹54 per share (including a premium of ₹44 per share)
- Market Lot: 2,000 shares
- Minimum Investment: ₹1,08,000 for retail investors
- Listing Platform: BSE SME
- Tentative Listing Date: February 20, 2025
The hospital, established in 2020, is equipped with advanced healthcare technology and has a capacity of 151 beds. It is accredited by the National Accreditation Board for Hospitals and Healthcare Providers (NABH) and the National Accreditation Board for Testing and Calibration Laboratories (NABL), underscoring its commitment to high-quality healthcare services.
Financial analysts have noted inconsistencies in the company’s financial performance over recent periods. Based on its latest financials, the IPO appears to be fully priced. Potential investors, especially those who are well-informed or have surplus funds, might consider investing with a medium to long-term perspective.
As of February 11, 2025, the Grey Market Premium (GMP) for Shanmuga Hospital’s IPO was noted at ₹8, indicating a modest premium over the issue price. However, GMP figures are volatile and should not be the sole basis for investment decisions.
About Shanmuga hospital ltd
Shanmuga Hospital Limited is a multispecialty healthcare institution located in Salem, Tamil Nadu. Established in 1981 as Shanmuga Cancer Institute—the first cancer hospital in Salem and its eight surrounding districts—the hospital has since expanded to offer over 20 specialties, including oncology, orthopedics, pediatrics, diabetes care, and urology. It is equipped with advanced medical technology and has a capacity of 151 beds. The hospital is accredited by the National Accreditation Board for Hospitals & Healthcare Providers (NABH) and its laboratory services are certified by the National Accreditation Board for Testing and Calibration Laboratories (NABL).
Incorporated as a public company on June 26, 2020, Shanmuga Hospital Limited has an authorized share capital of ₹140 million and a paid-up capital of ₹97.95 million. The company’s Corporate Identification Number (CIN) is U85110TZ2020PLC033974.
In February 2025, the hospital announced its Initial Public Offering (IPO), aiming to raise ₹20.62 crores through the issuance of 38.18 lakh equity shares at a price of ₹54 per share. The IPO opened on February 13, 2025, and closed on February 17, 2025, with a tentative listing date of February 20, 2025, on the BSE SME platform.
The hospital’s leadership includes Dr. Panneerselvam Palaniappan Shanmugam, Dr. Prabu Sankar Panneerselvam, Dr. Priyadharshni Dhandapani, and Mrs. Jayalakshmi Panneerselvam.
Shanmuga Hospital Ltd IPO GMP
As of February 11, 2025, the Grey Market Premium (GMP) for Shanmuga Hospital Ltd IPO is approximately ₹8 per share.
This indicates a slight premium over the issue price of ₹54 per share. However, the GMP can fluctuate in the coming days as the IPO listing approaches.
It’s important to note that while GMP reflects market sentiment, it should not be the sole factor in deciding whether to invest, as GMP can be volatile and unpredictable.
Shanmuga Hospital IPO Lot Size
Here is the lot size details for Shanmuga Hospital Ltd IPO:
| Category | Lot Size (Shares) | Investment Amount (₹) |
| Retail Investors | 2,000 shares | ₹1,08,000 |
| HNI (NII) Investors | 4,000 shares | ₹2,16,000 |
- Minimum Lot for Retail Investors: 2,000 shares (₹1,08,000)
- Minimum Lot for HNIs (NII): 4,000 shares (₹2,16,000)
- Issue Price: ₹54 per share
- Market Lot: Multiples of 2,000 shares
This IPO is listed on the BSE SME platform, and SME IPOs generally have larger lot sizes compared to mainboard IPOs.
Shanmuga Hospital IPO Promoter Holding
Here is the promoter holding details for Shanmuga Hospital Ltd IPO:
| Shareholding | Percentage Before IPO | Percentage After IPO |
| Promoter & Promoter Group | 100.00% | 73.92% |
| Public Shareholding | 0.00% | 26.08% |
- Promoters Before IPO: Held 100% of the company.
- Promoters After IPO: Their stake is reduced to 73.92% post-issue.
- Public Shareholding: Will increase to 26.08% after IPO listing.
This means the promoters are diluting about 26.08% of their stake to raise capital through this IPO.
Shanmuga Hospital Limited Returns
Shanmuga Hospital Private Limited, established on June 26, 2020, is a multispecialty hospital located in Salem, Tamil Nadu. As of the financial year ending March 31, 2023, the company reported the following key financial metrics:
| Financial Metric | Value |
| Authorized Share Capital | ₹14.00 Crore |
| Paid-up Share Capital | ₹9.80 Crore |
| Operating Revenue | ₹1 Crore – ₹100 Crore |
| EBITDA Growth | 2,312.49% increase over the previous year |
| Net Worth Growth | 1,756.38% increase over the previous year |
The company has experienced significant growth in both EBITDA and net worth, indicating a strong financial performance.
In addition to its financial performance, Shanmuga Hospital is accredited by the National Accreditation Board for Hospitals & Healthcare Providers (NABH) and the National Accreditation Board for Testing and Calibration Laboratories (NABL), reflecting its commitment to maintaining high standards in healthcare services.
For more detailed financial information, including annual returns and financial statements up to March 31, 2023, you can refer to The Company Check.
Please note that financial data is subject to change, and it’s advisable to consult the latest reports or official communications from the company for the most current information.
Key Performance Indicator
Key Performance Indicators (KPIs) are critical metrics that help organizations evaluate their performance and progress toward business goals. Here is an example of a KPI table tailored for Shanmuga Hospital Limited:
| KPI | Definition | Value/Target |
| Revenue Growth | Measures the increase in the hospital’s income over time. | Target: 15% year-over-year growth |
| EBITDA Margin | Shows the profitability from operations, excluding non-operational expenses. | Target: 20% |
| Patient Satisfaction | Percentage of patients satisfied with the hospital’s services. | Target: 90% satisfaction rate |
| Bed Occupancy Rate | Percentage of occupied hospital beds compared to total available beds. | Target: 80% occupancy |
| Employee Turnover Rate | Percentage of hospital staff leaving the organization. | Target: <10% annual turnover |
| Cost Efficiency | Measures how well the hospital controls operating expenses while maintaining quality care. | Target: Reduce operational costs by 5% annually |
| Net Profit Margin | Measures the hospital’s profitability after all expenses. | Target: 12-15% annual net margin |
| Accreditation Compliance | Measures adherence to industry standards like NABH or NABL. | Target: 100% compliance |
| New Patient Acquisition | Number of new patients registered per month. | Target: Increase by 10% annually |
These KPIs can help Shanmuga Hospital assess its operational efficiency, financial health, and overall patient and employee satisfaction.
Strengths Of Shanmuga Hospital Ltd IPO:
1) Established Healthcare Provider: With over four decades of experience, Shanmuga Hospital has built a reputation for clinical excellence and patient-centric care.
2) Comprehensive Medical Services: The hospital offers a wide array of services, including oncology, neurosurgery, cardiac care, and advanced diagnostic facilities like MRI and CT scans.
3) Accreditations: The hospital is accredited by the National Accreditation Board for Hospitals & Healthcare Providers (NABH) and the National Accreditation Board for Testing and Calibration Laboratories (NABL), reflecting its commitment to high-quality healthcare standards.
4) Strategic Location: Situated in Salem, Tamil Nadu, the hospital serves a significant patient base from the region, addressing the growing healthcare needs of the community.
Risks Of Shanmuga Hospital Ltd IPO:
1) Regional Market Dependence: The hospital’s operations are primarily concentrated in Salem, which may limit growth opportunities and expose the company to regional economic fluctuations.
2) Competitive Healthcare Sector: The presence of both established and emerging healthcare providers in the region could impact patient acquisition and revenue growth.
3) Financial Performance Variability: The company has exhibited inconsistencies in its financial performance, with fluctuations in revenue and profitability, which could affect investor confidence.
4) Regulatory Challenges: Operating in the healthcare sector involves navigating complex regulatory requirements, and any changes in healthcare policies or regulations could impact operations.
Conclusion:
Investing in Shanmuga Hospital Limited’s IPO presents an opportunity to participate in a growing healthcare provider with a strong regional presence and a commitment to quality care. However, potential investors should carefully consider the regional market dependence, competitive landscape, and financial performance variability before making investment decisions.
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