Shanmuga Hospital is launching its IPO on February 13, 2025, closing on February 17, 2025, with a fixed price of ₹54 per share. The IPO aims to raise approximately ₹20.62 crores through the issuance of 3,818,000 equity shares. Shanmuga Hospital, founded in 2020 in Salem, offers a range of medical facilities, including specialized units for oncology, cardiac care, and neonatal intensive care. The company’s revenue for FY2024 was ₹43.39 crores, with a profit of ₹5.26 crores.
₹5
₹54
₹54.00
Expert Opinions
Shanmuga Hospital IPO enters the market with strong potential, driven by the favorable sentiment towards the healthcare sector. As the industry continues to expand, investors are showing increased interest in companies with proven growth and financial stability. Shanmuga Hospital has several strengths, including a solid track record of consistent revenue growth, strong regional presence, and an experienced management team. The company’s ability to deliver high-quality healthcare services further strengthens its market position.
However, risks such as regulatory changes, rising competition, and the challenge of scaling operations while maintaining service quality must be considered. In terms of valuation, Shanmuga’s Return on Equity (ROE) stands at 30.71%, Return on Capital Employed (ROCE) at 35.89%, and Return on Net Worth (RoNW) at 30.71%, reflecting excellent financial performance and efficient capital utilization. For long-term investors, Shanmuga Hospital offers strong growth potential, but caution is advised due to industry-specific risks.
Investor Considerations
Shanmuga Hospital Ltd. has shown steady financial performance with solid revenue growth and profitability, backed by strong operational execution. The healthcare industry is poised for growth, driven by an aging population, rising healthcare awareness, and expanding healthcare infrastructure. Increased demand for medical services and technological advancements are expected to contribute to the sector’s long-term growth.
Shanmuga Hospital’s Price-to-Book Value is 3.09, indicating a relatively strong valuation. With a PAT margin of 12.13%, the company shows good profitability. Its Debt-to-Equity ratio of 0.53 suggests moderate financial leverage, which indicates a balanced approach to financing. The company is well-positioned for growth, with plans for expanding its facilities and services. Its competitive edge in quality healthcare and regional penetration adds to its future prospects.
Potential risks include regulatory changes, competition in the healthcare space, and operational challenges in maintaining consistent service quality. Investors should consider a medium- to long-term investment horizon, as the healthcare sector is expected to experience gradual growth. While Shanmuga Hospital’s outlook is positive, short-term market fluctuations could pose risks.
| Date | GMP | Trend |
|---|---|---|
| 20 Feb 2025 19.19 | ₹5 | --- |
| 19 Feb 2025 10.51 | ₹5 | --- |
| 18 Feb 2025 11.11 | ₹5 | --- |
| 17 Feb 2025 11.13 | ₹5 | --- |
| 15 Feb 2025 11.28 | ₹5 | --- |
| 14 Feb 2025 17.43 | ₹5 | Down |
| 13 Feb 2025 18.14 | ₹10 | --- |
| 11 Feb 2025 11.05 | ₹10 | Up |
| 10 Feb 2025 10.36 | ₹00 | --- |
| 09 Feb 2025 12.32 | ₹00 | --- |
| 08 Feb 2025 20.36 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Shanmuga Hospital’s listing performance. While the GMP of ₹5 predicted a positive premium of 9.26% over the issue price, the stock actually listed flat with no gains or losses. With a prediction error of 8.47%, the GMP failed to predict the flat listing, demonstrating its unreliability as a price predictor in this case.
Shanmuga Hospital IPO Current GMP is ₹5.
Shanmuga Hospital IPO Expected Returns is 9.26%.
Shanmuga Hospital IPO estimated listing price is ₹59.