What You Must Know About Broach Lifecare Hospital IPO: Price Band ₹25 Per Share

About Broach Lifecare Hospital Limited

Under the name "Maple Hospitals," Broach Lifecare Hospital Limited, incorporated in 2023, manages boutique hospitals. The business offers non-invasive cardiology services, such as treadmill testing, electrocardiography, 2D echocardiography, stress testing, dobutamine stress echocardiography, ambulatory blood pressure measurement, and Holter monitoring, to patients with heart conditions around-the-clock.

The Bharuch hospital has diagnostic equipment for various examinations and features 25 opulent in-patient beds. It also offers top-notch cardiac treatment and life-saving devices like ventilators, defibrillators, and intra-aortic balloon pumps.

The corporation's hospitals hold certification as small primary-level healthcare organisations from NABH. They also obtained a fire safety certificate from regional regulatory organisations and accreditation for the PACS System from the Atomic Energy Regulatory Board to guarantee patient safety. In addition, they dispose of biological waste by becoming members of Globe Bio Care.

As of August 2024, the business's hospitals are associated with four PSU insurance companies, fifteen private insurance companies, and eight third-party administrators (TPAs).
 

The Objective of the Issue

Broach Lifecare Hospital IPO intends to utilise the proceeds of the issue for the following objectives:

• Funding the capital expenditure towards expanding and modernising hospital facilities and acquiring new medical equipment.
• Repayment and pre-payment, in full or in part, of certain borrowings availed by the company.
• Meeting the general corporate purposes of the company.

These objectives are designed to strengthen the company's operational capabilities and financial health, ensuring continued growth and enhanced service offerings.
 

Highlights of Broach Lifecare IPO

Broach Lifecare Hospital IPO is set to launch with a fixed price issue of ₹4.02 crores. The issue comprises a fresh issue of 16.08 lakh shares with no offer-for-sale component. Here are the key details of the IPO:

• The IPO opens for subscription on August 13, 2024, and closes on August 16, 2024.
• The allotment is expected to be finalised on Monday, August 19, 2024.
• Refunds will be initiated on Tuesday, August 20, 2024.
• Credit shares to Demat accounts is also expected on Tuesday, August 20, 2024.
• The company will tentatively list on BSE SME on Wednesday, August 21, 2024.
• The price is fixed at ₹25 per share.
• The lowest lot size for the IPO application is 6,000 shares.
• Retail investors need to invest minimum of ₹1,50,000.
• The minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (12,000 shares), amounting to ₹3,00,000.
• Fedex Securities Pvt Ltd is the book-running lead manager for the IPO.
• Kfin Technologies Limited serves as the registrar.
• Aftertrade Broking is the market maker for the issue.

Broach Lifecare Hospital IPO - Key Dates

The timeline for the Sunlite Recycling Industries IPO is as follows:

Broach Lifecare Hospital Issue Details/Capital History

To acquire capital, the Broach Lifecare Hospital Initial Public Offering (IPO) plans to issue 1,608,000 equity shares at a price of ₹25 for each share, with a fixed-price plan. Each share has a face value of ₹10. Investors can apply for up to 6000 shares. The pre-issue shareholding of the corporation is 4,462,380 shares; the post-issue shareholding will rise to 6,070,380 shares. The BSE SME platform will list the shares. August 13, 2024, is when the issue opens, and August 16, 2024, ends.

Broach Lifecare IPO Allocation & Minimum Investment Lot Size

The IPO shares are distributed as follows among several investor categories:

Investors can place bids for multiples of the minimum of 6000 shares. The minimum and highest shares and amounts that retail investors and HNIs have invested are shown in the table below.

SWOT Analysis: Broach Lifecare Hospital IPO

Strengths

• Established Presence: Incorporated in 2023, Broach Lifecare Hospital Limited has quickly established itself as a boutique healthcare provider in the Bharuch region, operating under the "Maple Hospitals" brand.
• Diverse Service Portfolio: The hospital offers specialised services, particularly cardiology, with a range of non-invasive diagnostics and high-end coronary care equipment.
• Strategic Location: Located in Bharuch, Gujarat, the hospital is well-positioned to serve local and regional patients.
• Growth Trajectory: Broach Lifecare has demonstrated robust growth, with a net profit margin of 26.77% as of FY24, reflecting its strong operational efficiency.
• Customer-Centric Approach: The hospital's NABH certification and affiliations with numerous insurance providers underscore its commitment to quality care and patient satisfaction.

Weaknesses

• Limited Geographic Presence: The company’s operations are primarily in Bharuch, Gujarat. This localised focus might restrict its ability to efficiently expand and serve patients in other regions of India, potentially limiting its growth opportunities.
• Small Workforce: As of March 31, 2024, the company has a relatively small workforce, with only 19 employees. This could pose challenges in scaling operations, primarily if the company aims to expand its services or enter new markets. The ability to manage growth and maintain service quality with a limited team could be a concern.
• High Debt-to-Equity Ratio: The company's financial structure reveals a significant reliance on debt, with a debt-to-equity ratio of approximately 1.74. This high leverage could be risky, especially in a market downturn, as it increases the company’s financial obligations and could deter potential investors.
• Aggressive Pricing: The IPO is considered aggressively priced, especially given the company's mixed financial performance. With a small equity base and a high P/E ratio post-IPO, the valuation might seem unattractive to cautious investors.

Opportunities

• Growing Demand: With the increasing prevalence of lifestyle diseases and the growing ageing population, the demand for specialised healthcare services, particularly cardiology and diagnostics, is rising. With specialised services like 24-hour non-invasive cardiology, Broach Lifecare Hospital can tap into this growing market, providing significant growth potential.
• Government Initiatives: The company's potential empanelment under the Ayushman Bharat Yojana (PM-JAY), a flagship scheme by the Government of India, could significantly boost its patient base. This initiative, aimed at providing affordable healthcare to a larger population, could drive increased footfall and revenues for the hospital.
• Technological Advancements: Investing in advanced medical technologies and diagnostic tools can improve the quality of care provided. With plans to purchase new machinery from the IPO proceeds, Broach Lifecare Hospital can enhance its service offerings and attract more patients by providing state-of-the-art care.
• Export Markets: While the hospital primarily serves the local population, there is an opportunity to develop medical tourism, particularly by leveraging its planned medical tourism web portal. The hospital can open new revenue streams by attracting international patients, especially from neighbouring countries.
• Value-Added Services: Additional healthcare services, such as wellness programs, preventive health packages, and telemedicine, could further enhance the hospital's profitability. These value-added services provide higher margins and improve patient satisfaction and loyalty.

Threats

• Regulatory Compliance: Stricter healthcare regulations and accreditation requirements could increase operational costs and impact the hospital's ability to maintain certifications.
• Healthcare Competition: The presence of well-established hospitals in the region could lead to intense competition, pressuring margins and market share.
• Economic Downturn: An economic slowdown could reduce patient spending on non-essential healthcare services, impacting revenue.
• Technological Advances: Rapid advancements in medical technology might require significant capital investment to stay competitive.
• Operational Risks: Dependence on key medical personnel could pose a risk if there is turnover or a shortage of skilled staff.