Chandan Healthcare shares hit 5% upper circuit after listing at 4% premium on NSE SME; check details

Diagnostic labs operator Chandan Healthcare Ltd made a lacklustre debut on Monday, February 17, with its shares listing at a premium of 4% over the IPO price on the NSE SME platform.

The company’s shares started trading at ₹165.1 apiece against the issue price of ₹159 per share, reflecting a gain of 3.83%. Soon after listing, the stock rallied as much as 5% to hit the upper circuit limit of ₹173.35 apiece. However, the stock pared early gains to trade 3.57% higher at 171 apiece at 10:10 am.

More than 19.85 lakh shares of the company changed hands on the NSE Emerge platform. The total turnover stood at ₹32.97 crore. The market valuation of the company stood at ₹418.13 crore.

At the listing price of ₹165.1 per share, the value of a single lot of equity shares bagged by IPO investors reached ₹1,32,080 (₹165.1 x 800). The IPO investors could have made a profit of ₹4,880 per lot as the minimum investment in a single lot was ₹1,27,200 (₹159 x 800).

Chandan Healthcare mobilised ₹107.36 crore from public investors through its initial public offering, which was open for bidding from February 10 to February 12. The price band for the SME issue was fixed at ₹151 to ₹159 per share. The IPO comprised a fresh issue of 44.52 lakh shares, amounting to ₹70.79 crore, and an offer-for-sale (OFS) portion of 23 lakh shares, worth ₹36.57 crore. The lot size was 800 shares.

The public offer received decent demand from investors as the IPO was oversubscribed more than 7 times. Applications for more than 3.24 crore shares were received against 45.64 lakh shares on offer.

The Non-Institutional Investors (NIIs) led the demand as they applied for 1.78 crore shares against 9.25 lakh shares on offer. The NII quota was booked more than 19 times. The retail investors applied for 52.72 lakh shares against 21.59 lakh shares reserved for them, resulting in an oversubscription of 2.44 times.

The Qualified Institutional Buyers (QIBs) placed bids for more than 93.56 lakh shares against 12.33 lakh shares on offer, and the QIBs segment was booked 7.58 times. The company's employees applied for 44,800 shares.

Chandan Healthcare Ltd runs an extensive network of diagnostic labs in north India, offering pathology and radiology testing services. As of December 31, 2024, the company had a flagship laboratory, seven central labs, 26 satellite centres, and over 300 collection centres in Uttarakhand and Uttar Pradesh. It also provides home collection services. Its team included 15 radiologists, 23 pathologists, and more than 161 qualified professionals, such as clinicians, technicians, and operators.

Chandan Healthcare has proposed using IPO funds to establish a new diagnostic centre in Lucknow and a new central reference laboratory in Ayodhya and Lucknow, Uttar Pradesh.

Chandan Healthcare Financials

Chandan Healthcare reported revenue from operations of ₹ 167.47 crore for the April-December period of FY 2024-25. Its revenue increased to ₹176.59 crore in FY 2023-24 compared to ₹136.88 crore in FY 2022-23.

The company reported profit after tax of ₹17.41 crore in the April-December period of FY 2024-25. Its net profit stood at ₹16.35 crore in the financial year ended March 31, 2024, against ₹3.58 crore in the preceding fiscal.

Chandan Healthcare key performance indicators (FY24)