Friday, December 11, 2015

IPO ANALYSIS: NARAYANA HRUDAYALAYA : OFFER AT 200 PE - MUST AVOID IPO. IT WILL GO SKS MICROFINANCE WAY.


ISSUE DETAILS:





ISSUE OPENS / CLOSES ON

17-12 / 21-12-2015
ISSUE SIZE
RS 612
FACE VALUE
RS 10
ISSUE PRICE
RS 245-250

BUSINESS

HEALTH CARE

PROMOTERS

DR DEVI SHETTY / OTHERS
LISTINGS
BSE, NSE

BRLMs

AXIS CAPITAL, IDFC SECURITIES AND JEFFERIES INDIA
REGISTRAR

IPO GRADE
NA



           BUSINESS:

Founded by cardiac surgeon Devi Shetty, NHL operates 5,442 beds across 31 hospitals and 24 primary care centres in 31 cities. Providing low-cost healthcare is the company's core business objective — employing strategies like intensive use of infrastructure, pruning cost through technology, centralised operations, transparency of billing and having an experienced team. 

RISK FACTORS:

1. The company has not paid any dividends in the last five Financial Years.

2. NH has generated net negative cash flows in certain preceding Financial Years.

3. The average cost of acquisition of Equity Shares by our Promoters, Dr. Devi Prasad Shetty and Shakuntala Shetty is Rs 0.017 per Equity Share.

4. Three merchant bankers associated with the IPO have handled 11 issues in the last 3 years, out of which 7 IPOs closed below their IPO price on the listing day.

5. The offer is made at 200PE, as against the industry average of  59 PE.

6. RONW for FY 15 is 1.42%.

RECOMMENDATIONS:

A  MUST AVOID IPO.

Post listings the stock will settle down below Rs 150 in the short term and below Rs 100 in the medium term.







AWAIT DETAILED ANALYSIS

3 comments:

  1. Dear sir.looks like Narayan IPO will go power mech IPO way....looks like Risky Bet... I m waiting for your detail analysis. Thanks

    ReplyDelete
    Replies
    1. Dr. Devishetty fooling public & making money. He is also behaving like opportunistic businessman. He should have given at rs.10/ share. He would have got lots of many & many many hospitals could have been started & his vision of affordable tratment would have succeeded

      Delete
    2. Dr. Devishetty fooling public & making money. He is also behaving like opportunistic businessman. He should have given at rs.10/ share. He would have got lots of many & many many hospitals could have been started & his vision of affordable tratment would have succeeded

      Delete