Aashka Hospitals IPO

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(i) Aashka means “Blessing” & Aashka Hospitals signifies blessing, a blessing of the fine health.

(ii) Incorporated as “Aashka Hospitals Private Limited” on November 09, 2012, and was converted into a Public Limited Company on June 25, 2018. It is certified by National Accreditation Board for Hospitals and Healthcare Providers (“NABH Accredited”) for tertiary and apical care level hospital in Gujarat.

(iii) With the support of their doctors and staffs, it has treated more than 2000 COVID19 patients. It is also a part of Ayushman Bharat, a flagship scheme of Government of India.

(iv) Its hospital, Aashka Multispeciality Hospital, located at Gandhinagar, Gujarat, India is built across 85,000 Sq ft area with an aggregate bed capacity of 140 beds extendable upto 200 beds.

Specialty procedures performed at this hospital:

Competitive strengths
(i) Well diversified and specialty service offerings
(ii) Provision of quality healthcare services
(iii) Experienced player with longstanding presence

 

Objects of the Aashka Hospitals IPO:

The Offer comprises Fresh Issue & Offer for sale. -- Fresh issue of 54,00,000 Equity Shares, aggregating up to ₹ 6,534 Lakhs, Net Proceeds will be used in: 1. Repayment of certain borrowings 2. Funding of our inorganic growth initiatives 3. General corporate purposes -- Offer for Sale of up to 30,00,000 Equity Shares, aggregating up to ₹ 3,630 Lakhs
DRHP of Aashka Hospitals IPO

Aashka Hospitals IPO Details:

Open Date: Aug 10 2021
Close Date: Aug 18 2021
Total Shares: 8,400,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price
Issue Size: 101.64 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 121 Per Equity Share
Listing At: BSE SME
Listing Date: Aug 24 2021

Promoters And Management:

(i) Bipinchandra Shah, aged 53 years, Promoter of the Company, appointed on November 09, 2012 as Director of the Company. Further he was appointed as Managing Director of the Company on September 20,2018. He possesses Bachelor of Engineering degree in Civil Engineering from Gujarat University. He has experience of more than a decade in civil engineering field. He was the proprietor of M/s. Pyramid Associates rendering its consultancy services in the field of structural designing since 1993. Under his leadership, the firm also rendered its services to other various projects comprising of Residential, Industrial, Institutional, Commercial Hotels, Multiplexes, Sports Complexes and Infrastructure Projects across various cities of India. He looks after the hospital business (ii) Shreyarthi Shah, aged 49 years, appointed on June 22, 2018 as Additional Non-Executive Director of the Company. Later her designation was regularized and changed to Non-Executive Director on September 20, 2018. She possesses Bachelors’ Degree in Bachelor of Science (Statistics) from Gujarat University. (iii) Dr. Parag Thaker, aged 56 years, was appointed as a Director on November 09, 2012 of the Company. He possesses the degree of Doctor of Medicine (Pediatrics Branch) from Gujarat University. He is a M.D. and C.Y.S practicing as Specialist Pediatrician and Neonatologist Hospital and Neonatal Care Center under his proprietorship.

Financials of Aashka Hospitals IPO:

Particulars Mar 21 Mar 20 Mar 19
Revenue 4,068 2,722 2,766
Cost of material consumed 642 367 333
Direct Expenses 1,657 901 923
Change in inventories 9 -17 -6
Employee Benefit Expenses 556 423.00 392
Other Expenses 211 186 171
Operating Profit 993 862 953
OPM % 24.41% 31.67% 34.45%
Other Income 0.35 2.32 5.89
Depreciation & Amortisations 260 256 254
Financial Cost 319 468 566
Profit Before Tax 411 137 136
Net Profit 411 137 136
NPM% 10.10% 5.03% 4.92%
EPS 2.29 0.78 0.8

Comparison With Peers:

Companies CMP EPS PE Ratio RONW (%) NAV Face Value
Total Income (₹ in Lakhs)
Aashka Hospitals Limited 121 2.29 52.84 14.07 16.25 10 4069.23
Narayana Hrudayalaya Limited 476.1 -3.88 NA -7.05 53.32 10 173042.8
KMC Speciality Hospitals (India) Limited 36.45 0.78 46.52 20.18 3.88 1 10456.36

Recommendation on Aashka Hospitals IPO:

Review and Recommendation of Aashka Hospital IPO from InvestorZone is 3/10 1. The asking valuation at P/E of 70x while the peer such as KMC Speciality is trading at P/E of 50x. So, valuation looks way stretched. 2. It is a SME stock and promoters are selling their stakes. Big negative for the stock. 3. In FY20-21, the company has shown good growth but that is due to pandemic. Otherwise in FY18-19 and FY19-20, there is no growth in the business.  

Lead Manager of Aashka Hospitals IPO:

  1. Fedex Securities Limited

Registrar of Aashka Hospitals IPO:

  1. Accurate Securities & Registry Private Limited

Company Address:

Aashka Hospitals Limited Between Sargasan & Reliance Cross Road, Sargasan, Gandhinagar - 382421 Phone: +91-7575009000 Email: cs@aashkahospitals.in Website: http://www.aashkahospitals.in/

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