Maitreya Medicare Limited IPO - Review, Valuation & Todays GMP

Maitreya Medicare Limited - Complete Overview

Founded in 2019, Maitreya Medicare Limited is a multi-super specialty hospital with 125 beds, located in Surat, Gujarat.

This hospital is dedicated to providing comprehensive, integrated healthcare services spanning primary, secondary, and tertiary care. 

It covers a wide spectrum of medical specialities and super specialities, including Cardiology, Urology, Oncology, Laparoscopic Surgery, Neurology, Neurosurgery, Spine Surgery, Nephrology (including Dialysis), Gastroenterology, Gastrointestinal Surgery, Cardiothoracic Surgery, Oncosurgery, Orthopedic Surgery (including joint replacements and arthroscopic surgeries), Gynecology & High-Risk Obstetrics, Hepatocellular Biliary Surgery, Critical Care Medicine, and more.

In 2023, the hospital has a bed capacity of 125 and is under the leadership of Dr. Narendra Singh Tanwar, who serves as the founder, Promoter, CFO, and Managing Director. Dr. Pranav Rohitbhai Thaker is a Promoter and Whole-Time Director, while Mr. Vimal Patel also serves as a Promoter and Whole-Time Director.

 

What does the company do?

Maitreya Medicare Limited is a multi-super speciality hospital located in Surat, Gujarat.

 

 

IPO Overview

The Maitreya Medicare Limited IPO date is set to take place from October 27, 2023, through November 1, 2023. This SME IPO follows a Book Built Issue format.

Maitreya Medicare Limited IPO price has been established between the range of Rs. 78 to Rs. 82 per share, with the intention of raising Rs.14.89 Crores from this upcoming SME IPO.

Regarding the allocation of shares, 50% is reserved for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

 

Maitreya Medicare Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	27 October 2023
IPO Closing Date	1 November 2023
IPO Allotment Date	6 November 2023
Refund initiation	7 November 2023
IPO Listing Date	9 November 2023

 

Maitreya Medicare Limited IPO Details

IPO Opening & Closing Date	27 October to 01 November 2023
Face value	Rs.10 per Share
Issue Price	Rs. 78 to Rs. 82 per Share
Lot Size	1600 Shares
Price of 1 Lot	Rs. 131,200
Issue Size	1,816,000 Shares (aggregating up to Rs. 14.89 Cr)
Offer for sale	NA
Fresh issue	1,816,000 Shares (aggregating up to Rs. 14.89 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

Maitreya Medicare Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Maitreya Medicare Limited IPO Reservation

Institutional Share Portion	50%
Non-institutional Share Portion	15%
Retail Share Portion	35%

 

Company Financial

Amount in Lakhs

Period	31 Mar 2023	31 Mar 2022	31 Mar 2021
Total Assets	2,749.89	2,448.79	2,527.23
Total Revenue	3,994.91	4,974.41	5,704.44
PAT	422.65	113.63	424.34
Net worth	864.26	471.11	386.22
Reserve & Surplus
Total Borrowings	585.12	750.25	919.05

 

Key Financial Information of the Company

(Amount in Thousands, Except %)

Particulars	FY 23	FY 22	FY 21
Inpatient volume	4079	4431	4551
Outpatient volume	7208	6053	5438
Operational bed capacity	100	100	100
Census bed capacity	125	100	67
Average occupancy rate (%)	57	63	63
Average revenue per occupied bed (“ ARPOB”) (Rupees)	23889	21544*	24817*
Average length of stay in hospitals (“ALOS”) (days)	4.00	5.00	5.00

 

Objective of the Issue

The company intends to utilize the funds raised from the Issue for the following purposes:

• Investing in equity for the subsidiary named 'Maitreya Hospital Private Limited' to establish a hospital in Valsad, Gujarat.
• Redeeming a portion of the issued Non-Convertible Redeemable Preference Shares.
• Addressing the company's working capital needs.
• Meeting general corporate requirements.

 

Promoters and Management of Maitreya Medicare Limited

Dr Narendra Singh Tanwar, Dr Pranav Rohitbhai Thaker and Mr Vimal Natverlal Patel are the promoters of the company.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	73.20%

 

Peer Comparison

Below are the listed peers of Maitreya Medicare Limited

Company Name	EPS	P/E	Total Income (? in Thousands)
Maitreya Medicare Limited	7.93		399491
Shalby Limited	7.48	35.35	72,73820
KMC Speciality Hospitals (India) Limited	1.64	51.53	13,82197
Global Health Limited	12.57	61.76	2,75,91631

 

IPO's Valuations

The Maitreya Medicare Limited IPO price falls within the range of Rs. 78 to Rs. 82 per share, with an EPS of Rs. 7.93. When considering the upper end of the price range, to assess the IPO valuation of the company the P/E ratio stands at 10.34.

 

Dividend Policy 

According to the Maitreya Medicare Limited IPO DRHP, the company has not issued dividends in the past, and any potential future dividend payments will be based on the company's financial performance.

 

IPO's Strengths

• The capacity to draw in and maintain highly skilled and seasoned healthcare professionals.
• A proficient and well-qualified management team with a strong emphasis on adhering to NABH guidelines.
• Healthcare facilities led by doctors who possess extensive expertise and experience in the field.
• Concentration on underserved regions with high population density, along with a presence in tier-2 and tier-3 cities.

 

IPO Weaknesses

• The Company is currently involved in certain unresolved legal proceedings.
• The Company has previously failed to adhere to certain statutory provisions of the Companies Act.
• The Company has not appropriately accounted for interest provisions in accordance with the MSMED Act, 2006. It has made payments to MSME vendors beyond the contractual time limit specified by the MSMED Act, 2006.
• The Company has not yet initiated the application process for approvals and licenses for its planned Valsad hospital under its subsidiary, Maitreya Hospital Pvt Ltd.
• The Company faces potential legal claims and regulatory actions stemming from its provision of healthcare services.
• A significant portion of the Company's revenue depends on specific medical specialities, namely cardiology, neurology, orthopaedics, and general medicine.
• The Company experiences intense competition from other providers of healthcare services.
• A substantial part of the Company's revenue is generated through partnerships with governmental organizations, insurance companies, third-party administrators, and corporations.
• The Company is obligated to secure, renew, and maintain statutory and regulatory permits, accreditations, and licenses, and adhere to relevant safety, health, environmental, labor, and governmental regulations.
• The Company has encountered negative cash flows in the past and may continue to do so in the future.

 

 

IPO GMP Today

The Latest GMP of Maitreya Medicare Limited SME IPO is Rs. 35

 

Conclusion

The company operates within the highly competitive healthcare sector, which has numerous participants. While the company has been witnessing a decline in revenue over the years, its profits have been on the rise. Therefore, investors are strongly encouraged to thoroughly evaluate all relevant factors before considering an investment in this offering.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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