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01 January 2024

Maitreya Medicare Limited IPO: Transformative Healthcare Investment

Introduction:

Maitreya Medicare Limited IPO, a book-built issue of Rs 14.89 crores, signifies a new era in healthcare investment. The entire issue of 18.16 lakh shares is fresh, reflecting the company's commitment to expansion. The IPO bidding spanned from October 27, 2023, to November 1, 2023. The allotment process concluded on Monday, November 6, 2023, leading to listing on NSE SME on November 7, 2023.

Financial Snapshot:

With a price band of ₹78 to ₹82 per share, the IPO set a minimum lot size of 1600 shares, requiring a minimum retail investment of ₹131,200. For High Net Worth Individuals (HNIs), the minimum lot size was 2 lots (3,200 shares), amounting to ₹262,400.

Market Performance Snapshot:

As of December 20, 2023, Maitreya Medicare Limited (MAITREYA) was trading at ₹117.60, showing a 7.58% decrease. The opening and closing figures were ₹123.85 and ₹116.10, respectively.

Key IPO Metrics:

- IPO duration: October 27, 2023, to November 1, 2023
- Listing Date: November 7, 2023
- Face Value: ₹10 per share
- Price Band: ₹78 to ₹82 per share
- Lot Size: 1600 Shares
- Total Issue Size: 1,816,000 shares, aggregating up to ₹14.89 Cr
- Fresh Issue: 1,816,000 shares, aggregating up to ₹14.89 Cr
- Issue Type: Book Built Issue IPO
- Listing At: SME, NSE

Equity Landscape:

Pre-issue, Maitreya Medicare Limited had 4,960,000 shares. Post the IPO, this figure increased to 6,776,000 shares.

IPO Reservation Strategy:

The IPO allocated shares as follows: 18.15% to Qualified Institutional Buyers (QIB), 14.98% to Non-Institutional Investors (NII), 33.66% to Retail Individual Investors (RII), and 27.22% to Anchor investors. Notably, Anchor Investors were offered 494,400 shares.

IPO Timeline Highlights:

- IPO Open Date: Friday, October 27, 2023
- IPO Close Date: Wednesday, November 1, 2023
- Basis of Allotment: Monday, November 6, 2023
- Initiation of Refunds: Tuesday, November 7, 2023
- Credit of Shares to Demat: Tuesday, November 7, 2023
- Listing Date: Tuesday, November 7, 2023
- Cut-off time for UPI mandate confirmation: 5 PM on November 1, 2023

Lot Size Landscape:

Investors could bid for a minimum of 1600 shares and in multiples thereof. The table below outlines the investment parameters for retail investors and HNIs:

Application	Lots	Shares	Amount
Retail (Min)	1	1600	₹131,200
Retail (Max)	1	1600	₹131,200
HNI (Min)	2	3200	₹262,400

Promoter Holdings:

The promoters of Maitreya Medicare Limited are Dr. Narendra Singh Tanwar, Dr. Pranav Rohitbhai Thaker, and Mr. Vimalkumar Natverlal Patel. Pre-issue, they held 100% of shares, which decreased to 73.20% post the issue.

Company Profile:

Incorporated in 2019, Maitreya Medicare Limited is a multispeciality hospital located in Surat, Gujarat. It focuses on providing multi-disciplinary integrated healthcare services, encompassing primary, secondary, and tertiary care. The hospital offers services across 18 specialties and super specialties, including Cardiology, Urology, Laparoscopic Surgery, Oncology, Neurosurgery, and many more.
As of 2023, the hospital boasts a 125-bed capacity and is under the leadership of Dr. Narendra Singh Tanwar, Dr. Pranav Rohitbhai Thaker, and Mr. Vimal Patel.

Financial Performance Snapshot:

As of September 30, 2023:

- Assets: ₹3,122.31 Lakhs
- Revenue: ₹2,484.51 Lakhs
- Profit After Tax: ₹254.05 Lakhs
- Net Worth: ₹1,118.31 Lakhs
- Total Borrowings: ₹520.21 Lakhs

Key Performance Indicators:

- P/E (x): 10.34
- Post P/E (x): 10.92
- Market Cap: ₹55.56 Crores
- ROE: 50.15%
- ROCE: 42.71%
- EPS (Rs): 7.93
- RoNW: 45.49%

Objects of the Issue:

The proceeds from the IPO are intended for:
1. Investment in Equity in the subsidiary named 'Maitreya Hospital Private Limited' for setting up a Hospital at Valsad, Gujarat. 2. Redemption of part of issued Non-Convertible Redeemable Preference Shares. 3. Meeting working capital requirements. 4. General Corporate Purposes.

Expert Analysis:

The IPO is deemed fully priced based on recent financial performance, indicating potential for medium to long-term rewards for well-informed investors.

IPO Subscription Status:

As of November 1, 2023, the Maitreya Medicare Limited IPO was oversubscribed by a staggering 446.79 times. Retail subscription stood at 509.40 times, while Non-Institutional Investors (NII) and Qualified Institutional Buyers (QIB) categories were oversubscribed 744.03 times and 85.41 times, respectively. The total number of applications reached 194,589, reflecting a subscription of 509.40 times.

Note: All financial figures are in INR (Indian Rupees), and market-related data is as of December 20, 2023.

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