Sangani Hospitals
Book Building issueSME₹15.17 Cr issue
+10.00%
Listing gain over issue price
Issue size
₹15.17 Cr
1 lot at cut-off
₹1,20,000
Lot size
3,000shares
Open
04 Aug 2023
Close
08 Aug 2023
Allotment
11 Aug 2023
Listing
17 Aug 2023
Listing performance
Issue price
₹40
Listed at
₹44
Listing-day close
₹41.85
Latest price
₹59.70
Close on 23 Oct 2026
Listing gain
+10.00%
Return since issue
+49.25%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 04 Aug 2023 – 08 Aug 2023
- Listing date
- 17 Aug 2023
- Face value
- ₹10 per share
- Issue price
- ₹40 per share
- Lot size
- 3,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹15.17 Cr
- Market cap at offer price
- ₹55.11 Cr
- Promoter holding
- 100.00% → 72.49% pre-issue → post-issue
- ISIN
- INE0OVI01010
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- Sainath Society, Opp.S.T., KSD T, Village-Keshod, Taluka-Keshod, Gujarat
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 | 1,92,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹40
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 24,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 27,000 | ₹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
₹40 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.47 | — |
| P/E (×) | 11.53 | — |
| Market cap | — | ₹55.11 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 35.75%
- ROCE
- 11.26%
- PAT margin
- 9.47%
- NAV per share
- ₹18
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sangani Hospitals
Sangani Hospitals Limited was incorporated on November 11, 2021, and commenced business on December 14, 2021, through acquisition of eight entities (four proprietorship concerns and four partnership firms) via business transfer agreements. The company operates two multi-specialty hospitals: Sangani Hospital in Keshod (36 beds, primary/secondary/tertiary care) and Sangani Super Speciality Hospital in Veraval (32 beds, tertiary care focus), both in Gujarat. The company generates revenue from inpatient and outpatient treatments, pathology laboratory services, and medical store operations. For FY2023, revenue from operations was ₹1,566.79 lakhs with PAT of ₹148.37 lakhs.
Company Analysis
from RHPSangani Hospitals Limited is a multi-specialty healthcare provider operating two hospitals in Gujarat with a combined bed capacity of 68 beds, offering super-specialty, specialty, pathology, and pharmacy services.
Sangani Hospitals Limited was incorporated on November 11, 2021, and commenced business on December 14, 2021, through acquisition of eight entities (four proprietorship concerns and four partnership firms) via business transfer agreements. The company operates two multi-specialty hospitals: Sangani Hospital in Keshod (36 beds, primary/secondary/tertiary care) and Sangani Super Speciality Hospital in Veraval (32 beds, tertiary care focus), both in Gujarat. The company generates revenue from inpatient and outpatient treatments, pathology laboratory services, and medical store operations. For FY2023, revenue from operations was ₹1,566.79 lakhs with PAT of ₹148.37 lakhs.
Healthcare servicesMulti-specialty hospitalsDiagnostic pathologyPharmacy
Objects of the Issue
- Capital expenditure for expansion in Sangani Hospital at Keshod, Gujarat ₹809.58 lakhs p.27
- Capital expenditure for expansion in Sangani Super Speciality Hospital at Veraval, Gujarat ₹319.02 lakhs p.27
- General corporate purposes ₹161.10 lakhs p.27
- To carry out the capital expenditure for expansion in Sangani Hospital at Keshod, Gujarat ₹809.58 lakhs p.78
- To carry out the capital expenditure for expansion in Sangani Super Speciality Hospital at Veraval, Gujarat ₹319.02 lakhs p.78
- General corporate purposes ₹161.10 lakhs p.78
- Not specified in this section of the document
Issue Structure
- Total Issue
- ₹1,516.80 Lakhs
- Fresh Issue
- 37,92,000 Equity Shares aggregating to ₹1,516.80 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹37 (Floor Price) to ₹40 (Cap Price)
- Lot Size
- 3,000 Equity Shares and in multiples of 3,000 Equity Shares thereafter
- Face Value
- ₹10 each
Business Model
The company earns revenue primarily from inpatient admissions and treatments, outpatient services, diagnostic procedures, pathology services, and pharmaceutical sales through in-house medical stores. Revenue contribution in FY2023: Sangani Hospital Keshod contributed 52.85% (₹832.98 lakhs) and Sangani Super Speciality Hospital Veraval contributed 21.10% (₹332.54 lakhs).
Business Segments
Multi-specialty hospital with 36 beds providing primary, secondary and tertiary care facilities, strategically located near Keshod bus stand and railway station
Multi-specialty hospital with 32 beds with significant focus on tertiary care facilities
Diagnostic pathology services
In-house pharmacy and medical store operations
Provides multi-specialty and super-specialty healthcare services including cardiology, neurology, orthopaedics, general surgery, obstetrics & gynaecology, urology, and critical care services across two hospitals in Keshod and Veraval
Operates two pathology laboratories providing routine laboratory investigations and diagnostic testing services
Operates two medical stores engaged in trading in medicines, surgical goods, food products and cosmetic goods; also supplies medical consumables to hospitals and laboratories
Provision of in-patient and out-patient healthcare services through multi-speciality hospitals including cardiac sciences, neurosciences, orthopaedics, renal sciences, and mother & childcare
Sale of pharmaceuticals, surgical goods, food products and cosmetic goods through medical stores
Provision of pathology laboratory and diagnostic services
Provision of dialysis facility to patients, including free dialysis services under government schemes
Sale of services through subsidiaries
Sale of pharmaceutical and medical consumable products
Provision of consultancy services
SWOT Analysis
Strengths
- • Multi-speciality healthcare provider with combined bed capacity of 68 beds across two hospitals in Gujarat(p.26)
- • NABH accreditation for one hospital demonstrating quality standards compliance(p.36)
- • Promoters have combined medical experience of over four decades(p.33)
- • Established revenue base with strong growth trajectory across fiscal years(p.26)
- • Strategic location near transportation hubs making hospitals accessible to surrounding villages(p.26)
- • Doctor-led management with qualified specialists(p.113)
- • Strategic locations in underserved areas with dense populations(p.113)
- • Expansion capacity without major infrastructure investment(p.114)
- • Strong reputation enabling talent acquisition(p.114)
- • Established ISO and NABH certifications(p.108)
- • Multi-specialty healthcare with established presence in two locations(p.184)
- • Experienced promoter-led team with 20+ years medical practice(p.140)
- • Strong financial position with minimal debt(p.183)
- • Revenue growth of 52.36% year-on-year(p.187)
- • Strong liquidity position with current ratio of 5.38(p.185)
- • Free dialysis services to significant patient population(p.184)
Weaknesses
- • Significant revenue concentration in two hospitals located in single state of Gujarat(p.31)
- • High dependence on three specific promoters for strategic direction and business management(p.33)
- • Limited operating history as publicly incorporated entity with only recent acquisitions(p.34)
- • Heavy reliance on inpatient admissions and treatment for majority of revenue(p.34)
- • Significant capital equipment and machinery orders not yet placed despite expansion plans(p.37)
- • Past instances of regulatory filing delays and discrepancies with RoC(p.40)
- • Company logo not registered with trademark authority(p.42)
- • Material supplier dependence with subsidiary entity Ankur Distributors representing 16-34% of purchases(p.36)
- • Concentration in two geographic locations(p.109)
- • Significant decline in profitability in FY2023(p.112)
- • Small scale relative to peer group(p.86)
- • Declining profitability despite revenue growth(p.189)
- • High depreciation burden from recent property acquisition(p.188)
- • Significant increase in employee benefit expenses(p.188)
- • Limited geographic presence confined to two locations(p.184)
- • Modest bed capacity relative to larger hospitals(p.184)
- • Promoter litigation on criminal charges(p.194)
- • Litigation status on fraud-related charges remains pending(p.195)
- • Heavy capital expenditure requirements(p.191)
- • Outstanding material creditors(p.196)
Opportunities
- • Expansion of bed capacity at existing hospitals in Gujarat(p.37)
- • Indian healthcare sector projected to grow at 22% CAGR reaching US$372 billion by 2022(p.26)
- • Strategic acquisitions and mergers in healthcare services industry(p.32)
- • Introduction of new technologies and modernization of facilities(p.37)
- • Improving occupancy rates through brand recognition and community acceptance(p.37)
- • Obtain NABH accreditation for second hospital to strengthen quality positioning(p.36)
- • Expansion of super-specialty services at existing hospitals(p.79)
- • Growth in ancillary businesses (pathology and medical stores)(p.115)
- • Digital healthcare initiatives(p.115)
- • Strong growth trajectory of Indian healthcare sector(p.104)
- • Government healthcare scheme participation and expansion(p.108)
- • Expansion of super-specialty departments and services(p.131)
- • Establishment of ultra-modern dialysis centres(p.129)
- • Growth in government-sponsored healthcare schemes(p.184)
- • Integration of pharmacy and pathology businesses for synergy(p.131)
- • Government recognition and awards for performance(p.129)
- • Medical tourism business expansion(p.192)
- • Diversified revenue streams(p.192)
- • SME platform listing to access capital markets(p.225)
Threats
- • Intense competition from other hospitals and healthcare facilities with greater resources(p.36)
- • Low penetration of health insurance in India limiting patient affordability(p.38)
- • Medical and legal risks including malpractice suits and regulatory actions(p.34)
- • Risk of accidents involving radioactive substances and regulatory liability(p.38)
- • Attrition and recruitment challenges for doctors and healthcare professionals(p.33)
- • Delay in payment from government bodies and third-party payers affecting cash flows(p.33)
- • Rapid technological changes requiring continuous equipment and service upgrades(p.37)
- • Regulatory compliance costs and stringent health, safety and environmental requirements(p.48)
- • Natural or man-made disasters, terrorist attacks and civil unrest affecting operations(p.48)
- • Changes in pharmaceutical pricing regulations and healthcare industry reforms(p.34)
- • Data breach and privacy risks with evolving data protection regulations(p.46)
- • Highly competitive healthcare market(p.115)
- • Significant presence of unorganized competitors in local markets(p.115)
- • Dependency on healthcare regulation and licensing(p.118)
- • Regulatory constraints on medical practice and procedures(p.118)
- • Extensive regulatory compliance requirements in healthcare sector(p.122)
- • Mandatory environmental clearance and bio-medical waste management obligations(p.123)
- • Stringent drug and pharmacy regulations(p.122)
- • Complex labour and employment compliance across multiple statutes(p.123)
- • GST and multiple tax compliance requirements(p.126)
- • Healthcare sector competition and pricing pressure(p.135)
- • Subject to significant economic changes and regulatory uncertainties(p.192)
- • Reliance on regulatory approvals for medical operations(p.204)
- • Multiple critical regulatory licenses approaching expiry(p.200)
- • Competitive healthcare market conditions(p.192)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dr. Ajaykumar Sangani | Promoter | 33.17% | — |
| Dr. Rajeshkumar Sangani | Promoter | 33.17% | — |
| Kamalkumar Sangani | Promoter | 33.17% | — |
| Dr. Vaishali Sangani | Promoter | 0.10% | — |
| Dr. Ajaykumar Sangani | Promoter | 33.17% | 24.04% |
| Dr. Rajeshkumar Sangani | Promoter | 33.17% | 24.04% |
| Kamalkumar Sangani | Promoter | 33.17% | 24.04% |
| Dr. Vaishali Sangani | Promoter | 0.10% | 0.07% |
| Chandni Sangani | Promoter Group | 0.10% | 0.07% |
| Gopiben Sangani | Promoter Group | 0.10% | 0.07% |
| Natavarlal Sangani | Promoter Group | 0.10% | 0.07% |
| Rasila Sangani | Promoter Group | 0.10% | 0.07% |
| Dr. Ajaykumar Sangani | Promoter | 33.17% | 24.04% |
| Dr. Rajeshkumar Sangani | Promoter | 33.17% | 24.04% |
| Kamalkumar Sangani | Promoter | 33.17% | 24.04% |
| Dr. Vaishali Sangani | Promoter | 0.10% | 0.07% |
| Ajay Sangani | Promoter | — | — |
| Mansinghbhai Sisodia | Promoter | — | — |
| Sanjaybhai Isuda | Promoter | — | — |
| Jayantibhai Dhuda | Promoter | — | — |
| Virendrabhai Makavana | Promoter | — | — |
Leadership
Dr. Ajaykumar Sangani · Managing Director
Gaurav Patadia · Company Secretary and Compliance Officer
Chandni Sangani · CFO
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.
Sangani Hospitals IPO FAQs
What is the lot size of Sangani Hospitals IPO?
The minimum lot size of Sangani Hospitals IPO is 3,000 shares. One lot costs ₹1,20,000 at the cut-off price.
When does Sangani Hospitals IPO open and close?
Sangani Hospitals IPO opened for subscription on 04 Aug 2023 and closed on 08 Aug 2023.
What is the listing date of Sangani Hospitals IPO?
Sangani Hospitals IPO listed on 17 Aug 2023.