Chandan Healthcare IPO Day 1: NSE SME issue booked 19%; check price band, offer size and other key details

The initial public offering (IPO) of Chandan Healthcare Ltd saw a weak demand from investors on the first day of bidding on Monday, February 10. The NSE SME issue was booked only 19% at the end of bidding on the opening day.

The healthcare company aims to raise ₹107.36 crore from the primary market through its IPO. The issue is open for subscription till Wednesday, February 12.

Chandan Healthcare IPO received bids for over 8.55 lakh shares against 45.64 lakh shares on offer.

Retail investors subscribed only 29% of their quota with bids for 6.35 lakh shares against 21.59 lakh shares on offer. The non-institutional investors (NIIs) booked only 20% of their reserved portion with bids for 1.88 lakh shares against 9.25 lakh shares set aside for them. In the employees’ category the IPO received bids for 9,600 shares.

Here’s a look at all the key details about the issue for the investors interested in applying for the shares of Chandan Healthcare Ltd.

Ahead of the launch of its IPO, Chandan Healthcare raised a total of ₹29.4 crore from anchor investors on February 7.

According to the circular on the NSE, the company allotted 18.48 lakh shares to 14 anchor investors at an allocation price of ₹159 per equity share.

Chandan Healthcare IPO price band and other details

Chandan Healthcare IPO comprises a fresh issue of 44.52 lakh shares, worth up to ₹70.79 crore, and an offer-for-sale (OFS) of 22.99 lakh shares, aggregating to ₹36.57 crore, taking the total issue size to ₹107.36 crore.

The company has fixed the price band at ₹151 to ₹159 per share for the IPO. The minimum lot size is 800 shares.

Unistone Capital Private Ltd is the book-running lead manager of the Chandan Healthcare IPO, while Kfin Technologies Ltd is the registrar for the issue. The market maker for the IPO is RK Stock Holding Private Ltd.

Chandan Healthcare IPO key dates

The IPO allotment status is expected to be finalised on Thursday, February 13, 2025. Refunds will be issued on Friday, February 14, 2025, and the allottees will also receive shares in the Demat accounts on the same day.

The company has proposed to list shares on the NSE on Monday, February 17.

About Chandan Healthcare and use of IPO proceeds

Chandan Healthcare Limited operates a comprehensive diagnostic network in North India, offering pathology and radiology testing services. As of August 31, 2024, the company had a robust infrastructure with one flagship laboratory, seven central laboratories, twenty-six satellite centres, and over three hundred collection centres spread across more than 15 cities and towns in Uttar Pradesh and over 10 cities and towns in Uttarakhand.

Chandan Healthcare’s business model heavily relies on its B2C segment, which includes individual patients utilizing their diagnostic labs, collection centres, or home collection services.

The company intends to utilise the funds generated from the issue to set up a new Flagship Diagnostic Centre in Jankipuram, Lucknow, a new Central Reference laboratory at Ayodhya, and Ashiyana, Lucknow, in Uttar Pradesh. The proceeds from the IPO will also be allocated towards general corporate purposes.

The company reported revenue from operations of ₹167.47 crore for the period ended on December 31, 2024. The profit after tax (PAT) was recorded at ₹17.42 crore during the same period.

For the financial year ended March 31, 2024, Chandan Healthcare’s revenue from operations was reported at ₹167.47 crore compared to the same reading in the preceding fiscal year (FY23). Profit after tax for FY24 was ₹17.42 crore compared to the same reading in FY23.