KK Shah Hospitals Limited IPO

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1. Company History and Name Change: The company was originally incorporated as “Jeevan Parv Healthcare Limited” in August 2022 but subsequently changed its name to “KK Shah Hospitals Limited” in September 2022. This name change was approved through a special resolution passed at an Extra-Ordinary General Meeting.

2. Acquisition of Shah Hospital: As part of its objectives, the company acquired a proprietorship firm called “M/s Shah Hospital” (formerly known as “Shah Maternity and Nursing Home”), which was owned by one of the promoters, Dr. Kirti Kumar Shah. This acquisition took place through a Business Transfer Agreement dated December 31, 2022.

3. Facilities and Services: The hospital operated by the company is equipped with 26 beds for in-patient treatment and various diagnostic devices, including CT scan, DEXA scan, BMD, sonography, and X-Ray machines. The company is also a member of the Biomedical Waste Management System and is certified as a primary-level small healthcare organization in Madhya Pradesh by the National Accreditation Board for Hospitals and Healthcare Providers (NABH Accredited).

4. Promoter’s Role: The company attributes its success to the cost-effective, quality services provided by its promoters, who are medical professionals themselves. The personal interaction of the promoters with patients has contributed to building a reputation for providing quality medical services at competitive prices.

5. Medical Team and Specialists: The company emphasizes the presence of a dedicated medical team trained to handle patients and emergencies. It also engages prominent medical specialists as consultants to provide their services.

6. Specialty Areas: The company highlights its expertise in key specialty areas such as general surgery, gynecology, dental treatment, orthopedics, and mother and child care.

7. Operational Performance: As of the date of the prospectus, the company provides inpatient and outpatient healthcare services through its 26-bed hospital in Ratlam, Madhya Pradesh. It reports the number of surgeries performed and the volume of patients served during specific timeframes, demonstrating its operational activity and capacity.

8. Additional Services: The company has entered into an agreement with “M/s. Life Care Diet Service” to provide food services to patients and a cafeteria for attendants in the hospital, enhancing the overall patient experience.

In summary, the business model revolves around operating a healthcare services provider, with a particular focus on patient care and quality services. It has a strong historical connection to the local community through the promoters’ long-standing presence in the region and aims to further establish itself as a leading healthcare services provider. The acquisition of an existing nursing home and hospital has expanded its service offerings and infrastructure. The business aims to deliver cost-effective, quality healthcare to its patients while continuously improving its facilities and services.

Competitive Strengths

1. Clinical Excellence and Affordable Healthcare

2. Ability to attract and retain high quality doctors, consultants and medical support staff

3. Experienced Promoters, management team with a strong execution track record

Objects of the KK Shah Hospitals Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Purchase of medical equipment. ii. General corporate purposes.

KK Shah Hospitals Limited IPO Details:

Open Date: Oct 27 2023
Close Date: Oct 31 2023
Total Shares: 1,950,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 8.78 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 45 Per Equity Share
Listing At: NSE Emerge
Listing Date: Nov 08 2023

Promoters And Management:

i. Dr. Amit Shah is one of the Promoters, Chairman and Managing Director of the Company. He has been a Director on the Board since incorporation. He holds a bachelor’s degree in medicine and surgery in the year 2005 from North Maharashtra University, Jalgaon. He has also been registered as a member of the Diplomate of the National Board of Examinations, New Delhi for the practice of orthopedics in the year 2010. He was associated with ‘Shah Hospital’ since 2008 as a consultant doctor. He has more than 12 years of experience in the field of Orthopedics. ii. Dr. Kirti Kumar Shah is one of the Promoters and the Whole-time Director of the Company. He holds a bachelor’s degree in medicine and surgery from Mahatma Gandhi Memorial Medical College, Indore in the year 1974. His name is entered in the medical register of the Mahakoshal Medical Council in the year 1975. He played a key role in establishing the Shah Hospital. He has over 40 years of experience in the medical industry. He has been a Director on the Board since February 15, 2023. iii. Dr. Hansa Shah is the Executive Director of the Company. She has been associated with the Company since incorporation. She holds a bachelor’s degree in medicine and surgery from South Gujarat university in the year 1977. Her name was entered in the medical register at Mahakoshal Medical Council in the year 1976. She has over 40 years of experience in the medical industry. She has been a Director on the Board since incorporation.

Financials of KK Shah Hospitals Limited IPO:

Particulars ( In Lakhs )
25th Aug, 2022 - 31st Mar, 2023
Revenue from Operations 212 162
Other Income 2 0.4
Total Revenue 214 162
Cost of Material Consumed 0 0
Purchase of Stock in Trade 0 0
Change in inventories 0 0
Employee benefits expenses 46 39
Other Expenses 129 101
EBITDA 39 22
Depreciation & Amortisation 10 9
Finance Cost 0 0
EBIT 29 13
OPM (%) 18.14% 13.53%
PBT 29 13
Tax 7 3
PAT 22 10
NPM (%) 10.19% 5.88%
No.of Shares 68.08 68.08
EPS 0.32 0.13

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
KK Shah Hospitals Limited 2 0.22 0.32 140.5 45 31
Family Care Hospitals Limited 47 5.26 0.97 7.3 7.17 39
Shalby Limited 805 68 6.27 38.1 242 2,606
KMC Speciality Hospitals (India) Limited 156 27 1.64 47.9 80.9 1,319
Global Longlife Hospital and Research Limited 23 1.83 1.74 24.7 43 45
* Note: - Data of " KK Shah Hospitals Limited " is from ( 25th Aug, 2022 - 31st Mar, 2023 ), And rest of the Companies data is as per FY23.

Recommendation on KK Shah Hospitals Limited IPO:

Very little history of the company is available so no analysis is being done.

Lead Manager of KK Shah Hospitals Limited IPO:

  1. Fedex Securities Limited

Registrar of KK Shah Hospitals Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

KK Shah Hospitals Limited 124, Katju Nagar, Swastik APP., Ratlam-457001 Phone: 07412230199 Email: info@shahhospitalratlam.com Websitehttp://shahhospitalratlam.com/

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