Chandan Healthcare Lists at 3.84% Premium on NSE SME, Gains Further on Strong Buying Interest

Chandan Healthcare Limited, a comprehensive diagnostic services provider operating since 2003, made a positive entry into the public markets on Monday, February 17, 2025. The company, which runs diagnostic centers across North India offering both pathology and radiology services, commenced trading on NSE SME with a decent premium and showed continued strength in early trading.

Chandan Healthcare Listing Details 

The company's market debut presented a strong correlation between primary market response and secondary market valuation:

• Listing Time & Price: When trading commenced at market open, Chandan Healthcare shares debuted at ₹165.10 on NSE SME, showing an encouraging premium of 3.84% against the issue price of ₹159. This positive opening reflected investor confidence in the company's integrated diagnostic services model.
• Issue Price Context: The company had fixed the IPO price at ₹159 per share. The market's response validates this pricing given the company's strong presence in tier-two cities and consistent financial performance.
• Price Evolution: By 11:02 AM IST, the stock showed further strength, trading at ₹168.50 after hitting an intraday high of ₹173.35, representing an impressive gain of 9.02% from the issue price.

First-Day Trading Performance of Chandan Healthcare

The trading activity showed robust participation with bullish sentiment:

• Volume and Value: Within the first few hours, trading volume reached 27.06 lakh shares, generating a turnover of ₹45.20 crore, with 100% of traded quantity marked for delivery.
• Demand Dynamics: The stock's trading pattern showed strong buying interest with orders for 10,57,600 shares against sell orders for 1,03,200 shares, indicating sustained demand at current levels.

Market Sentiment and Analysis

• Market Reaction: Positive opening followed by continued momentum
• Subscription Rate: The IPO had been subscribed 7.04 times overall
• Category-wise Response: NII portion showed strongest interest at 18.85 times, followed by QIB at 7.58 times

Growth Drivers and Challenges 

Expected drivers of future performance:

• Strong geographic presence in tier-two cities
• Integrated diagnostics offering
• Consistent financial performance
• Experienced management team
• Expansion plans in Uttar Pradesh
• Growing healthcare demand
•  

Potential challenges:

• High competition in diagnostics
• Geographic concentration risk
• Working capital requirements
• Technology upgradation needs
• Regulatory compliance costs
• Skilled personnel retention

Utilisation of IPO Proceeds 

The ₹107.36 crore raised through combined fresh issue (₹70.79 crore) and offer for sale (₹36.57 crore) will be used for:

• Setting up new flagship center in Lucknow
• Establishing central labs in Ayodhya and Lucknow
• General corporate purposes
   

Financial Performance of Chandan Healthcare

The company has shown steady growth:

• Revenue of ₹177.96 crore in FY2024
• 9M FY2025 (ended December 2024) showed revenue of ₹167.99 crore with PAT of ₹17.42 crore
• Total borrowings of ₹51.92 crore
• Total assets of ₹170.06 crore as of December 2024
• Healthy PAT margin of 9.26%

As Chandan Healthcare begins its journey as a listed entity, market participants will closely monitor its ability to execute its expansion plans while maintaining operational efficiency. The positive listing and subsequent trading pattern reflect investors' confidence in the company's business model and growth prospects in India's growing diagnostics sector. The company's ability to maintain service quality while scaling up operations across new locations will be crucial for sustaining investor confidence and supporting long-term value creation.