KK Shah Hospitals
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Oct 2023 – 31 Oct 2023
- Listing date
- 06 Nov 2023
- Face value
- ₹10 per share
- Issue price
- ₹45 per share
- Lot size
- 3,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹8.78 Cr
- Market cap at offer price
- ₹30.64 Cr
- Promoter holding
- 100.00% → 71.36% pre-issue → post-issue
- ISIN
- INE0OH401016
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- 124, Katju Nagar, Swastik APP., Madhya 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 | 1,02,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹45
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,80,000 |
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 |
|---|---|---|
| EPS (₹) | 0.45 | — |
| P/E (×) | 100.00 | — |
| Market cap | — | ₹30.64 Cr |
Key performance indicators
- Return on net worth
- 4.28%
- ROCE
- 5.72%
- PAT margin
- 10.29%
- NAV per share
- ₹10.48
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About KK Shah Hospitals
KK Shah Hospitals Limited (formerly Jeevan Parv Healthcare Limited) was incorporated on August 25, 2022 to acquire and operate M/s Shah Hospital, a proprietorship concern started by Dr. Kirti Kumar Shah in 1976 as a clinic in Ratlam, later transformed into a nursing home in 1991. The company provides hospital services including multi-specialty care through both employed doctors and consultant physicians. The business model focuses on revenue generation from inpatient admissions and outpatient treatments through direct patient payments and third-party payers such as insurance companies and corporates. As stated in the prospectus, the company was "incorporated... with an main object of our Company to acquired M/s Shah Hospital proprietorship firm" and has "acquired the entire running business with the assets and liabilities of M/s Shah Hospital."
Company Analysis
from DRHPKK Shah Hospitals Limited operates multi-specialty hospitals providing inpatient and outpatient medical services across the healthcare sector in Ratlam, Madhya Pradesh.
KK Shah Hospitals Limited (formerly Jeevan Parv Healthcare Limited) was incorporated on August 25, 2022 to acquire and operate M/s Shah Hospital, a proprietorship concern started by Dr. Kirti Kumar Shah in 1976 as a clinic in Ratlam, later transformed into a nursing home in 1991. The company provides hospital services including multi-specialty care through both employed doctors and consultant physicians. The business model focuses on revenue generation from inpatient admissions and outpatient treatments through direct patient payments and third-party payers such as insurance companies and corporates. As stated in the prospectus, the company was "incorporated... with an main object of our Company to acquired M/s Shah Hospital proprietorship firm" and has "acquired the entire running business with the assets and liabilities of M/s Shah Hospital."
Objects of the Issue
- Funding our working capital requirements ₹702.50 Lakhs p.20
- General Corporate Expenses ₹243.50 Lakhs p.20
- Public Issue Expenses ₹48.50 Lakhs p.20
- Funding our working capital requirements ₹702.50 Lakhs p.82
- General corporate purposes ₹243.50 Lakhs p.82
- The document does not explicitly state specific objects of the issue in the sections provided (pages 130-201)
- The document does not explicitly state the specific objects/purposes for which the proceeds of this issue will be used
Issue Structure
- Total Issue
- ₹994.50 Lakhs
- Fresh Issue
- 19,50,000 Equity Shares aggregating to ₹994.50 Lakhs
- Offer for Sale
- N.A.
- Price Band
- ₹51/- per Equity Share (Fixed Price)
- Lot Size
- 2,000 Equity Shares
- Face Value
- ₹10/- per Equity Share
Business Model
Revenue generation from inpatient treatments, outpatient primary care, and diagnostic services. Patients pay either directly or through third-party payers (insurance companies and corporates). The document states: "Our revenue is dependent on in-patient treatments, and outpatient primary care" and "Our revenues come from in-patients and outpatients who are not covered by arrangements with insurance companies."
Business Segments
SWOT Analysis
- • Long-established healthcare business with operational history since 1976(p.20)
- • Experienced and qualified management with medical professionals as directors(p.55)
- • Clinical excellence with quality healthcare services(p.116)
- • Experienced promoters with strong track record in healthcare(p.116)
- • NABH accreditation as primary-level small healthcare organization(p.113)
- • Ability to attract and retain quality medical professionals(p.115)
- • Established brand with longstanding presence since 1976(p.113)
- • Comprehensive diagnostic and surgical capabilities(p.113)
- • Constant innovation, technical expertise and experienced doctors provide competitive edge(p.130)
- • Experience and reliability record with patients enables effective competition(p.130)
- • Quality of services and reputation support competitive positioning(p.130)
- • Multi-channel marketing strategy including digital, traditional media and community engagement(p.130)
- • Strong social media presence with planned content delivery strategy(p.130)
- • Community-focused health initiatives including camps and doctor visits(p.130)
- • Limited operating history as a public limited company(p.25)
- • Heavy dependence on consultant doctors not exclusively employed(p.32)
- • Revenue concentrated in single facility in Ratlam(p.26)
- • Lack of approvals and licenses for certain operations(p.29)
- • Outstanding litigation against directors and promoters(p.26)
- • Rented facilities without ownership(p.36)
- • Regulatory compliance issues and pending approvals in transferred name(p.36)
- • Single hospital location in Ratlam(p.114)
- • Low bed occupancy ratio(p.114)
- • Very early stage company incorporated in August 2022(p.113)
- • Limited scale with only 26 beds(p.113)
- • Very short operational history - acquired business only in December 2022(p.113)
- • Limited financial track record with minimal revenue(p.114)
- • Proprietorship converted to company structure recently with limited corporate governance maturity(p.145)
- • Dependence on small group of promoter-doctors for operations and governance(p.169)
- • Hospital facilities located in single city (Ratlam, Madhya Pradesh) with concentrated geographic risk(p.145)
- • Limited history - company incorporated only in August 2022 with only stub period financials(p.184)
- • Hospital premises taken on rent-free basis from directors, creating related party dependencies(p.155)
- • Promoter litigation involving tax matters(p.209)
- • Independent director's significant undisclosed income and pending tax demand(p.210)
- • Independent director's pending penalty proceedings for concealed income(p.210)
- • Litigation against independent director by third party for unpaid contractual amounts(p.210)
- • Very recent company incorporation with limited operational history(p.223)
- • Small and unprofitable net profit margin(p.205)
- • Healthcare sector growth and expansion(p.20)
- • Growing demand for multispecialty healthcare services(p.20)
- • Expansion of hospital network in Madhya Pradesh(p.117)
- • Growth in day care surgical services(p.116)
- • Focus on preventative healthcare for lifestyle diseases(p.117)
- • Diverse outpatient offerings expansion(p.116)
- • Growing Indian healthcare sector at 22% CAGR(p.109)
- • Government initiatives supporting healthcare infrastructure(p.109)
- • Expansion into medical education through addition to MOA for running educational institutions(p.146)
- • Development of pharmaceutical and biomedical research capabilities through MOA amendments(p.146)
- • Geographic expansion permitted through broad MOA allowing operations in India and abroad(p.146)
- • 100% FDI permitted in healthcare sector under automatic route enabling foreign investment(p.140)
- • Healthcare sector growth and demand for hospital services(p.204)
- • SME listing platform provides access to capital markets(p.197)
- • Growth through capital raised from IPO for business expansion(p.221)
- • Accreditation and certifications enhancing service credibility(p.192)
- • COVID-19 pandemic uncertainty on business(p.31)
- • Intense competition from established hospitals(p.28)
- • Healthcare industry regulatory requirements(p.31)
- • Dependence on healthcare professionals availability(p.27)
- • Economic downturn reducing patient demand(p.26)
- • Changes in tax laws and regulations(p.48)
- • Natural calamities and political instability(p.45)
- • Low health insurance penetration in India(p.34)
- • Intense competition from institutionalized and local healthcare providers(p.127)
- • Dependence on ability to attract and retain quality medical professionals(p.115)
- • Regulatory requirements and compliance burden(p.113)
- • Healthcare workforce shortages affecting industry(p.106)
- • Stringent healthcare regulations and licensing requirements could restrict operations(p.133)
- • Complex biomedical waste management regulations with authorization requirements(p.137)
- • Radiation protection rules and equipment authorization requirements for diagnostic/therapeutic services(p.134)
- • Strict restrictions on medical practice advertising and patient solicitation(p.133)
- • Intense competition from organized and unorganized healthcare players(p.130)
- • Environmental compliance requirements including air, water and hazardous waste management(p.136)
- • Regulatory compliance requirements for medical devices and healthcare operations(p.215)
- • Seasonal and weather-dependent fluctuations in healthcare demand(p.205)
- • Competitive healthcare market and pricing pressures(p.206)
- • Medical equipment licensing expiry and regulatory compliance risks(p.192)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dr. Amit Shah | Promoter | 21.29% | — |
| Dr. Kirti Kumar Shah | Promoter | 28.29% | — |
| Dr. Kirti Kumar Shah | Promoter | 28.29% | 20.19% |
| Dr. Amit Shah | Promoter | 21.29% | 20.19% |
| Dr. Hansa Shah | Promoter Group | 27.24% | 19.44% |
| Dr. Milli Shah | Promoter Group | 16.51% | 11.78% |
| Hemant Singh Sankhla | Promoter Group | 2.50% | 1.78% |
| Deepti Jain | Promoter Group | 2.50% | 1.78% |
| Kaushik Shashikant Shah | Promoter Group | 1.67% | 1.19% |
| Dr. Amit Shah | Promoter | 21.29% | — |
| Dr. Kirti Kumar Shah | Promoter | 28.29% | — |
| Dr. Kirti Kumar Shah | Promoter | — | — |
Leadership
Auto-extracted from the company's DRHP 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 DRHP before relying on it.