Sangani Hospitals Ltd IPO

About Sangani Hospitals Ltd

Sangani Group is a healthcare organisation founded by Dr. Ajaykumar Sangani. Its journey started with the establishment of Sangani Hospital in Keshod in 2001. In 2017, the Sangani Group established the Sangani Super Speciality Hospital in Veraval, Gujarat. This hospital is a NABH-certified multi-speciality hospital with a significant focus on tertiary care facilities. In 2019, Sangani Group started urology surgery, laparoscopic surgery, general surgery and orthopaedic surgery department at Keshod and Veraval Hospital. 

Apart from the hospitals, the Sangani Group also has two pathology laboratories and two medical stores, at Keshod and Veraval. These facilities are meant to cater to the diagnostic and medical needs of the patients and provide a standard, seamless healthcare experience. Hospital services brought in around 51% of the revenue while medical consumables brings in around 18% in 2022-23.

The hospital industry in India is expected to reach $132 bn by 2023 from $61.8 bn in 2017. This means the industry will be growing at a CAGR of 16-17%.

Sangani Hospitals Ltd IPO Details

Sangani Hospitals Ltd IPO Date

Retail investors can bid for the Sangani Hospitals IPO that will be open between Friday, August 4th 2023 and Tuesday, August 8th 2023. The IPO will list on the NSE exchange on August 17th 2023.

Sangani Hospitals Ltd IPO Price Band

Sangani Hospitals is a 100% fresh issue IPO comprising 37,92,000 shares. It is a book-building issue with a price range of ₹37 to ₹40 per share.

Sangani Hospitals Ltd IPO Lot Size

The Sangani Hospitals Ltd IPO has a lot size of 3,000 shares. Therefore, the minimum investment will be of around ₹1,11,000.

Sangani Hospitals Ltd IPO Objectives 

The objectives of Sangani Hospitals Ltd IPO are listed below:

• To carry out the capital expenditure for expansion in Sangani Hospital at Keshod, Gujarat and Sangani Super Speciality Hospital at Veraval, Gujarat
• General corporate purposes

Peer Details

The companies considered by Sangani Hospitals as its peers include - 

• Artemis Medicare Services Limited
• Lotus Eye Hospital and Institute

Strengths and Opportunities 

1. The company has carefully chosen under-served areas with dense population for its operations.
2. They are planning to leverage on their existing land space and diversify into new services as well as expand the number of beds.
3. They already have experience in laboratory and consumables businesses. This will help them in their acquisitions, expansions and diversifications in the long run.
4. However, the company has been enjoying an inflow of cash in the last 2 years. It lost cash worth ₹12.08 crore to investing activities, but still managed a positive cash flow overall.

Risks and Threats

1. A significant portion of their revenue comes from only two hospitals. Further, both their hospitals are located in the state of Gujarat. Any material impact on the revenue from these hospitals will impact their business.
2. Operating and owning medical facilities means facing a number of operational, financial and reputational risks.
3. Their business requires them to obtain and renew certain registrations, licenses, approvals, NoCs and permits. Failure to obtain or renew them may disrupt operations.
4. Despite having a low debt-to-equity ratio, the interest coverage ratio is extremely low. This raises doubts about the solvency of the company.

How to Check the Allotment Status of the Sangani Hospitals Ltd IPO?

A: Steps to check IPO allotment status on Angel One’s app:

• Log in to the Angel One app
• Validate with an OTP
• Enter your application number, DP ID, and PAN number into the app
• Click on ‘Submit’

Contact Details of Sangani Hospitals Ltd 

Registered office: Sainath Society, Opp. S.T., KSDT, Village - Keshod, Taluka - Keshod, Junagadh – 362220, Gujarat.

Phone: 02871-235900

E-mail:cs@sanganihospitals.com