Aatmaj Healthcare Limited IPO

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i. Aatmaj Healthcare Company is a growing organization that aims at strengthening and establishing our self as the foremost healthcare services provider. They strive to serve with the ultra-modern medicinal practices and state of the art infrastructure for medical as well as surgical care solutions.

ii. They have a team of medical practitioners who ensures that patients get the quality healthcare services. Their dedicated team is trained to take care of the patients and handle all kinds of emergencies.

iii. The healthcare staff members comprise of Unit Head, Consultant Doctors, Clinical Pharmacist, X-Ray Technician, Microbiologist, Medical Officers, Clinical Assistants, Medical Executives, OT Assistant, Infection Control Nurse, Other Nursing Staff, Attendants, Maintenance Head, Dietician/Nutritionist etc.

iv. Aatmaj Healthcare is a part of Ayushman Bharat-Pradhan Mantri Jan ArogyaYojana, a flagship scheme of Government of India which was launched and recommended by the National Health Policy 2017, to achieve the vision of universal health coverage (UHC).

v. They have conducted an aggregate healthcare treatment, including surgeries, of over 17,000 patients, consisting of more than 4,000 patients and more than 13,000 OPD patients including Covid-19 Patients.

Aatmaj Healthcare Limited – Group of Hospitals

i. Jupiter Hospital-TCH (Tertiary Care Hospital)
ii. JTP-Hospitals- Muval – SCH (Secondary Care Hospital)
iii. JTP-Hospitals- Padra – SCH (Secondary Care Hospital)
iv. Tirth Hospital (Secondary Care Hospital)

Services, Facilities and Specialities include: 

1. Out Patient Department (OPD)
2. Modular operation theatres
3. State of art ICU/PICU/NICU
4. USG/Digital X-Ray/Laboratory
5. Pregnancy and Fertility care Center
6. Cathlab, Echo Cardiography –TMT
7. Dialysis Unit 8. Medico Legal Case
9. Food Service for Patients and Cafeteria for Relatives
10. Insurance department
11. 24 Hour Medical Emergency Services
12. 24 Hour Diagnostic Department

Competitive Strengths

i. Quality standards
ii. Experienced and professional management team
iii. Well diversified and specialty service offerings

Objects of the Aatmaj Healthcare Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Repayment/Prepayment in full or part of the existing secured debt of the company, ii. Working Capital Requirements, iii. Purchase of medical equipment for hospitals of the company and/or newly acquired or set-up hospitals, iv. Acquisitions and other strategic initiatives, v. General Corporate Expenses and Issue expenses.

Aatmaj Healthcare Limited IPO Details:

Open Date: Jun 19 2023
Close Date: Jun 21 2023
Total Shares: 6,400,000
Face Value: ₹ 5 Per Equity Share
Issue Size: 38.40 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 60 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jun 30 2023

Promoters And Management:

Dr. Tushar Suvagiya, aged 45 years, is Bachelor of Medicine and Bachelor of Surgery from the Maharaja Sayajirao University of Baroda and Diploma in Gynaecology and Obesterics from the College of Physicians and Surgeons of Bombay. He has more than 20 years of experience in surgeries of vaginal, abdominal and laparoscopic hysterectomy and gynaec surgeries. He provides various diagnostic and healthcare services which include Treatment of Infertility, Complete Obstetric and Gynaec care, 3D-4D sonography (USG), High Risk-Delivery and C-section, Cancer Diagnosis and Treatment. He is actively involved into corporate development and new business ventures to achieve the growth and business plans of the Company and has been the driving force behind Company’s success and growth. Mrs. Jignasa Suvagiya, aged 44 years, is Bachelor of Science (Chemistry) from South Gujarat University. She has vast experience in the field of Hospital Management. She is looking after different departments of the Company i.e. operations, marketing, business development and employee welfare activities. She is a whole time director of the Company at present. Dr. Ravi Apte, aged 48 years, is Bachelor of Medicine and Bachelor of Surgery from the Maharaja Sayajirao University of Baroda and Diploma in Anaesthesiology from the Maharaja Sayajirao University of Baroda. He actively attends and participates in workshops and certification courses conducted by leading organisations. He provides anaesthesia assistance to the surgeons in various surgeries such as Orthopaedic Surgeries, Gynaec Surgeries, Uro Surgeries, Neuro Surgeries, General Surgeries and Onco Surgeries.

Financials of Aatmaj Healthcare Limited IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 9MFY23
Equity Share Capital 135 135 135 810
Reserves -228 184 676 578
Borrowings 876 433 518 1,218
Trade Payables 107 170 164 153
Other Liabilities 43 58 227 272
Total Liabilities 1,026 661 909 1,644
Net Block 798 818 1,081 1,087
Other Assets 4 17 31 40
Total NC Assets 803 835 1,113 1,128
Receivables 98 57 510 1,580
Inventory 14 21 41 39
Cash & Bank 2 55 18 187
Other Assets 16 13 39 98
Face value 5 5 5 5
B. Profit & Loss Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 Mar-23
Sales 436 1,726 2,181 2,727
Raw Material Cost 17 193 137 148
Purchases of Stock In Trade 64 230 285 64
Change in Inventory -3 -7 -20 2
Employee Cost 68 154 394 423
Other Expenses 221 626 633 890
Other Income 1 0.36 0 4
EBITDA 69 529 752 1,203
Depreciation 36 39 43 70
Interest 50 44 24 68
Profit before tax -18 446 685 1,066
Tax 9 34 193 296
Net profit -27 412 492 770
C. Cash Flow Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 9MFY23
Cash From Operating Activity
Profit From Operation 69 529 752 903
Receivable 3 41 -453 -1070
Inventory -3 -7 -20 2
Payable -47 63 -6 -11
Other WC Items -75 10 126 -27
Working Capital Changes -122 107 -352 -1107
Direct Taxes 0 25 175 222
Net Cash Inflow from Operating Activity -54 611 225 -426
Cash from Investing Activity
Fixed assets purchased -18 -57 -310 -57
Investments purchased 0 0 -0.3 0.3
Other investing items -0.39 -14 -11 0
Net cash inflow from investing activities -18 -71 -322 -56
Cash from Financing Activity
Proceeds from shares 27 0 0 0
Proceeds from borrowings 90 -99 340 702
Repayment of borrowings 0 344 256 0
Intrest paid fin -50 -44 -24 -51
Net Cash Flow -5 53 -37 169

Comparison With Peers:

Peers Beds Capacity Reve (Cr) EBITDA (Cr) OPM ROCE Rev/Bed (Cr) EV(Cr) EV/Bed
Aatmaj 130 175 27 12 44.44% 20% 0.21 145 1.1
KIMS 2500 3000 2200 604 27.45% 25% 0.88 13600 5.4
Kovai Medical 1800 NA 1000 270 27.00% 16% 0.56 2600 1.4
KMC Speciality 235 NA 156 41 26.28% 26% 0.66 1100 4.7
Avg. 0.58 3.2

Recommendation on Aatmaj Healthcare Limited IPO:

Review and Recommendation of Aatmaj Hospital SME IPO by IZ team is 6/10 A) Business Model: 1. Atmaj Healthcare Limited, originally incorporated as Aatmaj Healthcare Private Limited on March 10, 2014, is a significant player in the healthcare sector based in Vadodara, Gujarat. TThe founders, Dr. Tushar Suvagiya and Dr. Subhash Padmani, envisioned making international standard healthcare accessible to all individuals. 2. The company operates a state-of-the-art hospital built on a 686 square meter land parcel, strategically located in a prime locality of Vadodara. The construction of the hospital was completed in 2017, with Dr. Ravi Apte joining as a Director in 2015. It has a beg capacity of 130 beds extendable to 175 beds. 3. Aatmaj Healthcare Limited has fostered associations with various organizations, including Oil & Natural Gas Corporation Ltd., Gujarat Alkalies and Chemicals Ltd., and Pidilite Litokol Pvt. Ltd., to provide regular, affordable healthcare check-ups for their employees. Furthermore, the company is a part of the Government of India's Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana, aiming to achieve universal health coverage. B) Pros: 1. Experience Management. 2. Revenue growth is decent. Revenue has grown from ~5 Cr in Fy20 to ~27 Cr in Fy23. 3. PAT has increased from loss of 27 lakhs in Fy20 to Profit of ~8 Cr in Fy23. 4. Almost all the Hospitals shares have done really well in the last 1 year. 5. The Operating Profit Margin (OPM) of Aatmaj Hospital is 44.44%, which is relatively high as compared to peers. This indicates that the hospital has good operational efficiency. 6. The Enterprise Value (EV) per Bed is 1.1, which is lower than the average of 3.2 for listed peers. This could suggest that the hospital is undervalued compared to its peers, potentially offering a good investment opportunity. C) Cons: 1. As on 31.12.2022, total trade receivables is ~16 Cr. It has increased by ~10 Cr in the first 9MFy23 on revenue of ~20 Cr. That means almost 50% is struck in receivables in the first 9MFy23. May be due to delay in payment from Ayushmann Bharat-Pradhan Mantri Jan Arogya Yojana. 2. The Revenue per Bed is 0.21 Cr, which is lower than the average of 0.58 Cr. Which peers are generating. This could indicate that the hospital is not generating as much revenue per bed as its peers.

Lead Manager of Aatmaj Healthcare Limited IPO:

  1. Nirbhay Capital Services Private Limited

Registrar of Aatmaj Healthcare Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Aatmaj Healthcare Limited Jupiter Hospital, Opp. ICAI Bhavan, Sunpharma Ataladra Road, Vadodara - 390012 Phone: +91 9714059465 Email: cs@jupiterhospitalvadodara.com Website: https://www.jupiterhospitalvadodara.com/

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