Gian Life Care Limited IPO

Apply 0
Avoid 0

(i) The Company was incorporated on November 06, 2018, under the provisions of the Companies Act, 2013 by Registrar of Companies, Kanpur. On March 01, 2019, the company took over the entire running business of M/s Gian Pathology and XRays, a proprietorship concern of the promoter Mr. Arun Kumar Gupta with a view to providing diagnostic and related healthcare tests and services.[ A firm, which was formed in 1995, converted into the company in 2018 to bring IPO ]

(ii) They are primarily engaged in the business of providing diagnostic and related healthcare tests and services in Kanpur and nearby areas. They provide a broad range of diagnostic and related healthcare tests and services such as patient diagnosis services and prevention and wellness diagnosis services to its patients and healthcare providers. The customers include individual patients, hospitals, other healthcare providers and corporate customers.

(iii) They offer a broad range of approximately 1,344 tests as of March 31, 2019, it includes various tests ranging from biochemistry, clinical pathology, coagulation, cytogenetics, cytology, hematology, histopathology, immunoassay, microbiology, molecular biology and radiology services.

Objects of the Gian Life Care Limited IPO:

The Issue includes a fresh Issue of up to 14,16,000 Equity Shares of the Company at an Issue Price of Rs. 22.00 per Equity Share. They intend to utilize the proceeds of the Issue to meet the following objects:- 1. To open a processing center in nearby cites of Kanpur (Jhansi, Banda, Faizabad, Unnao). 2. To purchase advanced machinery and equipment. 3. Repayment/pre-payment, of certain borrowings availed by the Company. 4. To meet issue expenses

Gian Life Care Limited IPO Details:

Open Date: Dec 31 2019
Close Date: Jan 03 2020
Total Shares: 14,16,000
Face Value: ₹ 10 Per Equity Share
Issue Type: fixed issue
Issue Size: 3.12 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 22 Per Equity Share
Listing At: BSE SME
Listing Date: Jan 13 2020

Promoters And Management:

Mr. Arun Kumar Gupta is the promoter of the company, and he has completed his degree in Pathology from G.S.V.M. Medical College in Kanpur. Under his guidance and efforts the laboratory has taken the shape of a big diagnostic center which has its 2 branches across Kanpur and collection centers in its adjoining districts. His knowledge and understanding have helped us foster a reputation among medical practitioners, patients and other healthcare providers as a timely, accurate, convenient and cost-effective laboratory testing services.

Financials of Gian Life Care Limited IPO:

Year Revenue EBITDA OPM PAT NPM Shares FV EPS
2019 56 16.7 29.8% 6.94 12.4% 47 10 0.15
6MFY20 182 62 34.1% 33.85 18.6% 47 10 0.72
Note: The Company was incorporated as a public limited company under the Companies Act, 2013 on November 06, 2018, and pursuant to incorporation have taken over the business of Gian Pathology and X Rays on March 01, 2019. The major business transactions (revenue activities) have taken place post the acquisition of the business by the Company i.e. after March 01, 2019.

Comparison With Peers:

Thyrocare is the peer of the Gian Life. It is currently available at P/E of 25x. Gian Life Care SME IPO is issuing shares at P/E of 15x. The valuation is not cheap, considering the size and operation of both companies. The RONW of Gian LIfe care is only 9% and Thyrocare is having RONW of 20%, which shows the Thyrocare has super return on net-worth as compared to Gian Life.

Recommendation on Gian Life Care Limited IPO:

Review and Recommendation of InvestorZone is: 3/10 [ The financial data given in the DRHP is not enough to gauze the performance of the company. Therefore, nothing concrete can be concluded. If someone is really looking to invest in the diagnostic sector, then they can look for Dr. Lal Path and Thyrocare, which are available at good valuation and growing rapidly.  ]

Lead Manager of Gian Life Care Limited IPO:

  1. Hem Securities Limited

Registrar of Gian Life Care Limited IPO:

  1. Cameo Corporate Services Limited

Bid Details of Gian Life Care Limited IPO as on
03 Jan 2020 | 11:56:01 PM

Category No.of shares offered No. of shares bid
672,000 1,284,000
672,000 522,000
72,000 72,000
1,416,000 1,878,000
QIBs No
QIBs+HNIs Subscription 1.91X
Retail Subscription 0.78X
Total Subscription 1.34X

Discussion on Gian Life Care Limited IPO:

    There are lot of companies in diagnostics business. Every nook and corner in India is filled up with such companies. So, competition is really tough among these companies. If someone is looking to invest in the diagnostic business, then they can look at a bigger name like Dr. Lal or Thyrocare. If somebody is looking to invest in just for listing gain, then can take risk depending upon the subscription. If Qib cross >5x, they can apply for listing gain.