Asarfi Hospital SME IPO to open on July 17; check price band & other details

The initial public offering (IPO) of Asarfi Hospital is set to open for subscription on Monday, July 17. The company is looking to raise Rs 26.94 crore via primary route and will be selling its shares in the range of Rs 51-52 apiece. The three-day stake sale will conclude on Wednesday, July 19.

The issue consists entirely consist of sale of 51.80 lakh fresh equity shares with a lot size of 2,000 equity shares. Each lot of Asarfi Hospital will cost Rs 1.04 lakh to the investors at the upper range of price band. Retail investors can make a bid for a single lot only, while non-institutional investors need to bid for at least two lots, or 4,000 equity shares.

The net proceeds from the issue will be utilized towards funding of capital expenditure of Cancer Hospital at Ranguni, Jharkhand; acquiring; and on leasehold basis for Health Management and Research Institute at Ranchi, Jharkhand and general corporate purposes.

Hem Securities is the sole book running lead manager to the public issue while Cameo Corporate Services has been appointed as the registrar to the issue. The company is set to be listed at BSE's SME platform with 27 July 2023 as the tentative date of listing.

Dhanbad-based Asarfi Hospital is a 250 bedded multi-specialty hospital with 23 departments. It has 70 doctors and 242 nursing staff & 481 other staff. Its top revenue generating specialties include cardiology, neurosciences, general medicine, paediatrics and obstetrics.  

The average revenue per occupied bed of Rs 20,068 with average bed occupancy rate of 65 per cent and average length of stay 4 days in FY23, the company said in a statement. A 50 bedded dedicated Cancer Hospital is currently under construction in Dhanbad, it added.

Asarfi Hospitals achieved revenue from operations of Rs 70.7 crore with EBITDA Rs 13.77 crore and PAT of Rs 8.01 crore for the financial year ended on March 31, 2023. Cardiology and Neurosciences departments contributed towards 43 per cent of the revenue.

The company has reserved 2.6 lakh equity shares as market share, which is Hem Finlease for Asarfi Hospital's IPO. Not more than 50 per cent of the net offer has been reserved for qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent of the net offer. Remaining 35 per cent of the shares shall be allocated to the retail investors.

Also read: TCS vs Wipro vs HCL Tech shares: How 3 top IT firms fared, stock price targets & more

Also read: Hot stocks on July 14, 2023: JBM Auto, Titagarh Rail, Mazagon Dock, Brightcom Group, others