Gian Life Care SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 31 Dec 2019 – 03 Jan 2020
- Listing date
- 13 Jan 2020
- Face value
- ₹10 per share
- Issue price
- ₹22 per share
- Lot size
- 6,000 shares
- Total issue size
- ₹3.12 Cr
- Market cap at offer price
- ₹10.34 Cr
- Promoter holding
- 95.74% → 65.62% pre-issue → post-issue
- ISIN
- INE063601012
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- 7/216 (6),, Swaroop Nagar,, Uttar Pradesh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 72,000 | — | — |
Application size
Minimum 6,000 shares per lot, in multiples, at ₹22
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 6,000 | ₹1,32,000 |
| S-HNI (min) | 2 | 12,000 | ₹2,64,000 |
| S-HNI (max) | 7 | 42,000 | ₹9,24,000 |
| B-HNI (min) | 8 | 48,000 | ₹10,56,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹10.34 Cr |
About Gian Life Care SME
Gian Life Care Limited was incorporated on November 06, 2018 in Kanpur, Uttar Pradesh, specifically to acquire the business of M/s Gian Pathology and X-Rays, a proprietorship of promoter Mr. Arun Kumar Gupta (MBBS, MD Pathology) first established in 1995; the takeover closed on March 01, 2019 via a Business Transfer Agreement for a consideration of Rs. 328.66 lakhs, settled substantially by allotting 6,506 equity shares at Rs. 5,051 each followed by a 198:1 bonus issue. The company operates a NABL-accredited diagnostic business from two Kanpur locations (a rented Swaroop Nagar registered office/laboratory and an owned Saket Nagar laboratory/collection centre) with collection centres in adjoining districts, offering approximately 1,344 tests across biochemistry, clinical pathology, coagulation, cytogenetics, cytology, haematology, histopathology, immunoassay, microbiology, molecular biology and radiology/imaging (Digital X-ray, ultrasound, ECG, TMT, BMD, OPG, etc.). It serves individual walk-in and home-collection patients, hospitals, practising physicians, other healthcare providers and corporate/institutional customers, processing samples from over 400 patients per day on average using bar-coded specimens, a cloud-based information system and online report access. It earns money almost entirely from pathology testing fees — revenue from operations was Rs. 179.96 lakhs with PAT of Rs. 33.85 lakhs for the period ended June 30, 2019, versus Rs. 55.83 lakhs and Rs. 6.94 lakhs for the period ended March 31, 2019; the acquired proprietorship had recorded revenues of Rs. 853.43 lakhs (FY2016-17) and Rs. 814.92 lakhs (FY2017-18).
Company Analysis
from RHPGian Life Care Limited is a Kanpur-based provider of diagnostic and related healthcare tests and services, spanning pathology/laboratory medicine and radiology & medical imaging.
Gian Life Care Limited was incorporated on November 06, 2018 in Kanpur, Uttar Pradesh, specifically to acquire the business of M/s Gian Pathology and X-Rays, a proprietorship of promoter Mr. Arun Kumar Gupta (MBBS, MD Pathology) first established in 1995; the takeover closed on March 01, 2019 via a Business Transfer Agreement for a consideration of Rs. 328.66 lakhs, settled substantially by allotting 6,506 equity shares at Rs. 5,051 each followed by a 198:1 bonus issue. The company operates a NABL-accredited diagnostic business from two Kanpur locations (a rented Swaroop Nagar registered office/laboratory and an owned Saket Nagar laboratory/collection centre) with collection centres in adjoining districts, offering approximately 1,344 tests across biochemistry, clinical pathology, coagulation, cytogenetics, cytology, haematology, histopathology, immunoassay, microbiology, molecular biology and radiology/imaging (Digital X-ray, ultrasound, ECG, TMT, BMD, OPG, etc.). It serves individual walk-in and home-collection patients, hospitals, practising physicians, other healthcare providers and corporate/institutional customers, processing samples from over 400 patients per day on average using bar-coded specimens, a cloud-based information system and online report access. It earns money almost entirely from pathology testing fees — revenue from operations was Rs. 179.96 lakhs with PAT of Rs. 33.85 lakhs for the period ended June 30, 2019, versus Rs. 55.83 lakhs and Rs. 6.94 lakhs for the period ended March 31, 2019; the acquired proprietorship had recorded revenues of Rs. 853.43 lakhs (FY2016-17) and Rs. 814.92 lakhs (FY2017-18).
Objects of the Issue
- To open processing center in nearby cites of Kanpur (Jhansi, Banda, Faizabad, Unnao) ₹86.40 Lakhs p.63
- To purchase advanced machinery and equipment ₹100.29 Lakhs p.63
- Repayment/pre-payment of certain borrowings availed by the Company ₹78.72 Lakhs p.63
- To meet the Issue Expenses ₹46.11 Lakhs p.63
Issue Structure
- Total Issue
- Public issue of upto 14,16,000 Equity Shares of face value Rs. 10.00 each for cash at Rs. 22.00 per Equity Share, aggregating Rs. 311.52 Lakhs (constituting 30.12% of post-issue paid-up capital; Net Issue to public of 13,44,000 shares aggregating Rs. 295.68 Lakhs constituting 28.59%)
- Fresh Issue
- Entire Issue is a Fresh Issue of upto 14,16,000 Equity Shares aggregating Rs. 311.52 Lakhs, of which 72,000 Equity Shares aggregating Rs. 15.84 Lakhs are reserved for the Market Maker (Shreni Shares Private Limited)
- Price Band
- Fixed Price Issue at Rs. 22.00 per Equity Share (issue price is 2.20 times the face value; no book-built price band)
- Lot Size
- 6000 shares
- Face Value
- Rs. 10.00 each
Business Model
Revenue comes almost entirely from 'Pathological Testing Fees', recognised when services are rendered. Individual patients — the major part of the customer group — are billed per test as per the laboratory's customer fee schedule, whether they walk in or use the home specimen-collection service; hospitals, nursing homes, private laboratories, radiology centres, diagnostic centres, IVF centres and physicians send specimens collected at their clinics for testing at Gian's laboratories; and corporate employers, insurance companies and government agencies pay on a negotiated fee-for-service basis under contracts giving employees access to diagnostic and preventive healthcare packages. Minor other income comprises interest (Rs. 2.29 lakhs for the period ended June 30, 2019).
Business Segments
SWOT Analysis
- • Broad diagnostic test menu of ~1,344 tests spanning biochemistry, pathology, microbiology, molecular biology and radiology(p.80)
- • Emphasis on specialized wellness and preventive healthcare testing(p.82)
- • NABL-accredited laboratory (top-tier quality certification for testing/calibration labs in India)(p.81)
- • Strategically located main laboratory near major hospitals; 24-hour active lab(p.82)
- • Experienced leadership team; Promoter (MD Pathology) with 24 years in pathology(p.82)
- • Customer-centric approach focused on affordable, reliable testing and satisfaction(p.82)
- • Established patient throughput of over 400 test samples processed per day on average(p.80)
- • Pathological (healthcare) services exempt from GST, aiding cost competitiveness(p.73)
- • Limited operating history as a company (formed solely to acquire the promoter's proprietorship)(p.25)
- • Entire operations concentrated in Kanpur laboratories(p.24)
- • Heavy dependence on the Promoter for day-to-day execution and growth(p.26)
- • Past defaults in repaying loan installments taken over from the proprietorship concern(p.27)
- • Substantial indebtedness creating debt-service obligations and flexibility constraints(p.30)
- • Registered office and Swaroop Nagar laboratory are rented (from the Promoter), not owned(p.25)
- • 'GIAN' trademark not registered and no application filed for registration(p.26)
- • Negative cash flows experienced across operating, investing and financing activities(p.32)
- • Growing demand for wellness/preventive testing to expand offerings and test range(p.83)
- • Geographic expansion into nearby cities (Jhansi, Banda, Faizabad, Unnao) via new processing centres (₹86.40 lakhs of Net Proceeds)(p.64)
- • Capacity/technology upgrade through purchase of advanced machinery and equipment (₹100.29 lakhs of Net Proceeds)(p.63)
- • Government's National Free Diagnostic Service Initiative expanding public diagnostics access(p.78)
- • Flagship national health insurance scheme boosting secondary/tertiary care demand(p.77)
- • New National Health Policy proposes raising public health expenditure to 2.5% of GDP(p.78)
- • Highly competitive Indian diagnostics industry pressuring share and margins(p.28)
- • Potential government-imposed price caps/fee schedules on diagnostic services(p.24)
- • Possible levy of GST on healthcare/diagnostic services currently exempt(p.32)
- • Risk of inability to obtain/retain/renew licenses, registrations and permits(p.29)
- • Demand tied to population disposable income and health awareness, which may decline(p.35)
- • Dependence on macroeconomic conditions in the Indian economy(p.36)
- • Changes in laws, rules, regulations and legal/tax uncertainties in India(p.36)
- • Political instability and shifts in government policy affecting business conditions(p.37)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Arun Kumar Gupta | Promoter | 95.74% | 66.90% |
| Mrs. Avani Gupta | Promoter Group | 3.03% | 2.12% |
| Ms. Rashika Agarwal | Promoter Group | 0.61% | 0.42% |
| Mr. Devang Agarwal | Promoter Group | 0.61% | 0.42% |
| Ms. Akanksha Gupta | Promoter Group | 0.01% | 0.01% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.