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19 October 2023

Unihealth Consultancy IPO: Bridging Healthcare Across Borders

Introduction:

Unihealth Consultancy Limited, established in 2010 and headquartered in Mumbai, India, is a prominent healthcare service provider. Operating across multiple countries in Africa, the company plays a vital role in delivering healthcare services, consultancy, pharmaceutical and medical consumable product distribution, and medical value travel.

IPO Snapshot:

The Unihealth Consultancy IPO raised ₹56.55 crores through a book-built issue of 42.84 lakh fresh shares. The subscription period took place from September 8, 2023, to September 12, 2023. The allotment of shares was finalized on September 15, 2023, and the shares were listed on NSE SME on September 21, 2023. The IPO was offered within a price band of ₹126 to ₹132 per share, with a minimum lot size of 1000 shares, requiring a minimum investment of ₹132,000 for retail investors.

Key Players:

Unistone Capital Pvt Ltd served as the book running lead manager of the Unihealth Consultancy IPO, and Bigshare Services Pvt Ltd acted as the registrar for the issue. Rikhav Securities was the market maker.

Stock Performance:

As of October 6, 2023, Unihealth Consultancy Limited's stock was trading at ₹123.80, marking a 2.75% decrease. The stock had an opening price of ₹127.30, reached a high of ₹129.00, and a low of ₹122.25. The previous closing price was ₹127.30, with a total traded value of 22,000 shares.

Ownership Structure:

Pre-issue shareholding was at 95.32%, and post-issue, it stands at 73.08%.

Financial Performance:

Unihealth Consultancy Limited has reported steady growth in its financials. As of March 31, 2023, the company's assets were valued at ₹7,833.32 lakhs, with revenue reaching ₹4,603.01 lakhs. The profit after tax stood at ₹768.00 lakhs, and the net worth of the company was ₹2,612.83 lakhs, with reserves and surplus of ₹2,612.83 lakhs. The total borrowing as of that date amounted to ₹3,926.67 lakhs.

Performance Indicators:

Key performance indicators for the Unihealth Consultancy IPO included a P/E (Price-to-Earnings) ratio of 26.56 and a Market Capitalization of ₹203.28 crores.

Objectives of the Issue:

The net proceeds from the IPO were allocated for the following purposes:

1. Investment in joint ventures, Victoria Hospital Limited (VHL) in Uganda, UMC Global Health Limited (UMCGHL) in Nigeria, and subsidiary Biohealth Limited (BL) in Tanzania for funding capital expenditure and expansion.
2. General corporate purposes.

Expert Opinion:

Recommended that investors consider parking funds in this IPO for short to long-term rewards. The company's healthcare services and product distribution centers in India and Africa, coupled with its positive FY23 financial performance, indicate promising opportunities in the healthcare sector.

Subscription Status:

The Unihealth Consultancy IPO attracted strong demand, with a subscription rate of 18.22 times as of September 12, 2023. Retail investors showed significant interest with a subscription rate of 24.61 times. Non-Institutional Investors (NII) also participated actively, with a subscription rate of 37.65 times. However, the Qualified Institutional Buyer (QIB) category had a subscription rate of 5.97 times.

Conclusion:

Unihealth Consultancy Limited plays a crucial role in healthcare services and product distribution, connecting India and Africa. Before considering this IPO, investors should conduct a thorough analysis of the company's growth prospects, financial performance, and business model. Additionally, it's essential to align your investment decisions with your investment goals and risk tolerance

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