Nidan Healthcare SME
SME₹50 Cr issue
-0.88%
Listing gain over issue price
Issue size
₹50 Cr
1 lot at cut-off
₹1,25,000
Lot size
1,000shares
Open
28 Oct 2021
Close
02 Nov 2021
Allotment
09 Nov 2021
Listing
12 Nov 2021
Listing performance
Issue price
₹125
Listed at
₹123.90
Listing-day close
₹117.75
Latest price
₹12.30
Close on 23 Oct 2026
Listing gain
-0.88%
Return since issue
-90.16%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Oct 2021 – 02 Nov 2021
- Listing date
- 12 Nov 2021
- Face value
- ₹10 per share
- Issue price
- ₹125 per share
- Lot size
- 1,000 shares
- Total issue size
- ₹50 Cr
- Market cap at offer price
- ₹174 Cr
- Promoter holding
- 99.99% → 71.22% pre-issue → post-issue
- ISIN
- INE0J6L01013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- First Overseas Capital Ltd.
- Registered office
- Swapnshilpa, Behind Aarti Apartment, Vartak Road, Palagar, Maharashtra
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 | 2,00,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹125
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,25,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,50,000 |
| S-HNI (max) | 8 | 8,000 | ₹10,00,000 |
| B-HNI (min) | 9 | 9,000 | ₹11,25,000 |
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
₹125 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹174 Cr |
About Nidan Healthcare SME
Nidan was established as a proprietary firm in 1994 by Dr. Nitin Vitthalrao Thorave, providing diagnostic services at reliable and affordable prices. The business was incorporated as a company in 2000 and has since expanded to operate 35 diagnostic cum collection centres (as stated in the document) across Northern District of Mumbai and Pune and Southern District of Pune under the brand name 'Nidan Healthcare'. The company provides integrated diagnostic services to more than 1 million patients per year through radiology, neurology, cardiology, dental and pathology services. The company generated revenue from operations of ₹2,185.32 lakhs for FY 2021, ₹2,219.18 lakhs for FY 2020, and ₹2,097.22 lakhs for FY 2019. Individual patients comprise 90% of revenue as of June 30, 2021.
Company Analysis
from RHPNidan Laboratories and Healthcare Limited is a diagnostic healthcare service provider offering pathology testing and radiology imaging services across Northern Mumbai and Pune.
Nidan was established as a proprietary firm in 1994 by Dr. Nitin Vitthalrao Thorave, providing diagnostic services at reliable and affordable prices. The business was incorporated as a company in 2000 and has since expanded to operate 35 diagnostic cum collection centres (as stated in the document) across Northern District of Mumbai and Pune and Southern District of Pune under the brand name 'Nidan Healthcare'. The company provides integrated diagnostic services to more than 1 million patients per year through radiology, neurology, cardiology, dental and pathology services. The company generated revenue from operations of ₹2,185.32 lakhs for FY 2021, ₹2,219.18 lakhs for FY 2020, and ₹2,097.22 lakhs for FY 2019. Individual patients comprise 90% of revenue as of June 30, 2021.
HealthcareDiagnosticsPathology testingRadiology imaging
Objects of the Issue
- Repayment / pre-payment of certain borrowings ₹2,500.00 lakhs p.18
- Additional Working Capital ₹1,700.00 lakhs p.18
- General Corporate Expenses ₹440.00 lakhs p.18
- To meet the expenses of the Issue ₹360.00 lakhs p.18
- Repayment / pre-payment, in full or in part, of certain borrowings availed by our Company ₹1,600.00 Lakhs p.69
- Additional Working Capital ₹2,600.00 Lakhs p.69
- General Corporate Expenses ₹440.00 Lakhs p.69
- Repayment of borrowings ₹2,500.00 lakhs
- General corporate purposes ₹500.00 lakhs
Issue Structure
- Total Issue
- ₹5,000.00 lakhs
- Fresh Issue
- ₹5,000.00 lakhs (40,00,000 equity shares at ₹125 per share)
- Offer for Sale
- Nil - There is no Offer for Sale as the Company is making only a Fresh Initial Public Offer/Issue.
- Price Band
- Fixed Price Issue at ₹125 per equity share
- Lot Size
- Not explicitly stated in this section
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue primarily from walk-in individual patients seeking diagnostic healthcare services. Services are provided through its own diagnostic centres offering pathology tests (approximately 740 routine and 3000 specialized tests) and radiology tests (approximately 220 basic and 320 advanced tests). The business model also includes franchisee arrangements and an APSC agreement with Metropolis Healthcare Limited for expansion.
Business Segments
In-vitro diagnosis including sample collection in the form of blood, urine and stool, followed by analysis using laboratory equipment and technology to derive useful clinical information for assisting in patient treatment. Includes routine tests (sugar, cholesterol, HIV, pap, pregnancy), clinical lab tests to monitor diseases and drug treatments, and specialty tests (genetics, immunology, oncology, endocrinology).
Imaging diagnostic segment consisting of complex tests like computed tomography (CT) scans and magnetic resonance imaging (MRI) and other highly specialised tests like positron emission tomography (PET)-CT scans.
Provides integrated diagnostics services to individual consumers through diagnostic centers and home collection services. Customers visit centers for pathology and radiology tests or have specimens collected at their residence.
Provides diagnostics services to institutional customers including hospitals, smaller laboratories, and corporate entities for their employees. Samples are collected and sent to company laboratories for analysis on a negotiated fee-for-service basis.
CT Scan, MRI, X-Ray, Ultrasound Sonography services; approximately 220 basic and 320 advanced radiology tests
Blood, urine, stool tests and other pathological laboratory services; approximately 740 routine and 3000 specialized pathology tests
ECG, Stress Test, 2D Echo and other cardiological tests
EMG, EEG and other neurological tests
SWOT Analysis
Strengths
- • Established brand with 27+ years in diagnostics(p.17)
- • Comprehensive service offerings across pathology and radiology(p.17)
- • Significant patient volume and market reach(p.17)
- • Multi-service integrated model under one roof(p.17)
- • Established brand with decades of recognition in diagnostics(p.104)
- • Comprehensive diagnostic service portfolio with extensive test menu(p.100)
- • Large operational network with 35 diagnostic centres and strong market position(p.100)
- • Strong technology infrastructure with proprietary software systems(p.105)
- • Experienced medical and technical team with significant industry expertise(p.105)
- • Dominant position in core geography with first-mover advantage(p.104)
- • Quality accreditations and standards across all centres(p.102)
- • Established regulatory framework and compliance infrastructure for clinical establishments(p.115)
- • Comprehensive atomic energy and radiation safety protocols for diagnostic operations(p.117)
- • Standardized biomedical waste management and environmental compliance requirements(p.120)
- • Established brand presence with 26 years of operational history(p.183)
- • Extensive network of 30 operational diagnostic centres across Mumbai and Pune(p.183)
- • Comprehensive service offering with 740 routine and 3000 specialized pathology tests plus 220 basic and 320 advanced radiology tests(p.183)
- • Large patient base of over 1 million patients served annually(p.201)
- • High profitability growth with PAT increasing 222% YoY to Rs. 230.24 lakhs in FY 2021(p.204)
Weaknesses
- • Heavy geographic concentration in Northern Mumbai(p.23)
- • Promoter and CEO disqualified under Companies Act(p.25)
- • High debt levels limiting financial flexibility(p.19)
- • Registered office premises on short-term lease from promoter(p.25)
- • Inadequately stamped or unregistered franchise agreements(p.26)
- • Outstanding tax proceedings against promoter and group entities(p.22)
- • Reliance on third-party suppliers without long-term contracts(p.26)
- • Geographic concentration risk with majority of operations in Northern Mumbai and Pune(p.102)
- • Dependence on limited institutional customer base and corporate clients(p.104)
- • High dependence on single partnership - APSC agreement with Metropolis Healthcare(p.101)
- • Limited scale compared to national diagnostic chains(p.91)
- • Multiple promoter group companies with negative net worth and recurring losses(p.156)
- • Promoter disqualification under Companies Act Section 164(p.147)
- • No non-compete agreements with group entities creating potential conflict of interest(p.151)
- • Concentration of promoter shareholding at 90.32% of paid-up capital(p.146)
- • Significant debt burden with long-term borrowings of Rs. 3,709 lakhs (debt-to-equity ratio of 2.57x as of June 2021)(p.198)
- • Heavy reliance on promoter-provided unsecured loans totalling Rs. 503.68 lakhs(p.190)
- • Significant contingent litigation relating to promoter's real estate dealings and dishonoured cheques(p.214)
- • High finance costs of Rs. 346 lakhs annually (15.82% of total revenue) indicating significant debt servicing burden(p.203)
- • Non-provision of employee gratuity liability despite legal obligation, creating contingent liability(p.196)
Opportunities
- • Expansion across pan-India and pan-Mumbai markets(p.18)
- • High growth potential in diagnostics sector(p.16)
- • Growing demand for preventive healthcare and wellness testing(p.16)
- • Increasing health insurance penetration creating customer base(p.16)
- • Government commitment to increase healthcare spending(p.16)
- • Expansion of diagnostic service offerings(p.18)
- • Expansion potential across pan-India diagnostic market with high growth trajectory(p.105)
- • Industry growth driven by rising preventive care awareness and wellness focus(p.105)
- • Market consolidation opportunity as unorganized labs face cost pressures(p.93)
- • Growing health insurance penetration and coverage expansion(p.97)
- • Shift towards organized players accelerated by COVID-19 pandemic experience(p.93)
- • Significant expansion opportunity in tier II, III and IV cities(p.94)
- • Rising chronic and lifestyle diseases driving demand for specialized diagnostic tests(p.83)
- • Expansion potential through diagnostic services growth(p.128)
- • Franchisee business expansion model(p.134)
- • Healthcare infrastructure development in multiple states under CERR Act framework(p.115)
- • NABL accreditation as mandatory eligibility for government health scheme participation(p.118)
- • Planned expansion of diagnostic centre network within Pan-Mumbai and Pan-India(p.202)
- • Franchise expansion model launched during the year to drive geographic reach(p.203)
- • Healthcare industry growth momentum with diagnostic services increasingly utilized by private and government hospitals(p.183)
- • Growing brand differentiation through specialized sub-brands (NIDANPATH for pathology, NIDAN DIAGNOSTICS for radiology)(p.183)
- • Strategy to expand diagnostic service offerings and branding through marketing activities(p.202)
Threats
- • Highly fragmented and competitive diagnostic market(p.30)
- • Low entry barriers attracting unorganized and organized competitors(p.30)
- • Price competition may intensify and compress margins(p.30)
- • Disruptive point-of-care and home testing technologies(p.30)
- • Government price regulation could limit service pricing(p.31)
- • Regulatory compliance burden and licensing requirements(p.28)
- • COVID-19 pandemic impact on operations and lockdowns(p.23)
- • Dependence on walk-in patients whose healthcare spending can decline in economic downturns(p.35)
- • High fragmentation and intense competition from organized and unorganized providers(p.109)
- • Pricing pressure from competitive market dynamics and unorganized player prevalence(p.94)
- • Vulnerability to technological obsolescence and upgrade requirements(p.94)
- • Low entry barriers enabling new competitive entrants in fragmented market(p.93)
- • Regulatory changes and compliance requirements for diagnostic services(p.109)
- • Competition from established national diagnostic chains with greater scale(p.92)
- • Challenges in entering new geographies due to local player entrenchment(p.94)
- • Complex multi-jurisdictional regulatory compliance across different state laws(p.116)
- • Stringent radiation protection and nuclear medicine facility requirements(p.117)
- • Environmental and bio-medical waste disposal compliance penalties(p.120)
- • Consumer protection regulation extending product liability to service providers(p.119)
- • COVID-19 pandemic impact causing revenue decline of 1.53% in FY 2021 despite cost controls(p.203)
- • Intense competitive environment in diagnostic services sector with low barriers to entry(p.206)
- • Dependence on material and equipment costs which fluctuate with external price pressures(p.202)
- • Regulatory changes and stringent government regulations affecting operations and pricing(p.202)
- • Pending litigation with KDMC involving potential loss of cardiac unit lease agreement and damaged expensive machinery(p.212)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dr. Nitin Vitthalrao Thorave | Promoter | 90.32% | 64.33% |
| Promoter Group & Relatives | Promoter Group | 9.67% | 6.89% |
| Dr. Nitin Vithalrao Thorave | Promoter | 90.32% | 64.33% |
| Promoter Group & Relatives | Promoter Group | 9.67% | 6.89% |
| Dr. Nitin Vitthalrao Thorve | Promoter | — | — |
Leadership
Dr. Nitin Vitthalrao Thorave · Promoter
Mr. Edwin Francis Dabre · Executive Director
Ms. Tejal Anil Jayakar · Executive Director and CFO
Mrs. Roshan Nitin Thorave · Chief Executive Officer
Mr. Akshay Joshi · Company Secretary & Compliance Officer
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.
Nidan Healthcare SME IPO FAQs
What is the lot size of Nidan Healthcare SME IPO?
The minimum lot size of Nidan Healthcare SME IPO is 1,000 shares. One lot costs ₹1,25,000 at the cut-off price.
When does Nidan Healthcare SME IPO open and close?
Nidan Healthcare SME IPO opened for subscription on 28 Oct 2021 and closed on 02 Nov 2021.
What is the listing date of Nidan Healthcare SME IPO?
Nidan Healthcare SME IPO listed on 12 Nov 2021.