ONE OF NICE ARTICLE ON NH WHICH PROMPTED ME TO APPLY
Dr .Devi Prasad Shetty (born 8 May 1953) is an Indian philanthropist and a cardiac surgeon. He has leveraged economies of scale to provide affordable healthcare. He was awarded the Padma Shri, the fourth highest civilian award, in 2004, followed by the Padma Bhushan, the third highest civilian award, in 2012, by the Government of India for his contribution to the field of affordable healthcare
In Kolkata he operated on Mother Teresa after she had a heart attack and subsequently served as her personal physician. After some time, he moved to Bangalore and started the Manipal Heart Foundation at Manipal Hospitals, Bangalore. Financial contribution for the construction of the hospital was provided by Shetty’s father-in-law.
He has performed over 15,000 heart operations till 2010.
His hospitals have reduced costs by taking advantage of the economies of scale, this allows them to complete heart surgeries for a tenth of the cost in the United States.
The Wall Street Journal has given him the title of Henry Ford of heart surgery.
Short note about the Company ( Detailed analysis on Valuation by Paresh Gordhandas is at the bottom of the page )
Founded in the year 2000 by cardiac surgeon Devi Prasad Shetty, Narayana Hrudayalaya has a network of 23 hospitals, 8 heart centres and 24 primary care facilities across 31 cities, towns and villages in Karnataka and eastern India, besides an emerging presence in Central and Western India. It has 5,442 operational beds and the potential to reach a capacity of up to 6,602 beds. The company provided healthcare to over 1.97 million patients in FY15 and employs over 11,000 people including doctors, paramedical staff and others.
The healthcare company is now entering the Capital market
Selling Shareholders : Ashoka Investment Holdings Ltd (up to 62,87,978 shares), Ambadevi Mauritius Holding Ltd (up to 18,86,455 shares) JP Morgan Mauritius Holdings IV Ltd (up to 1,22,61,648 shares), among others. Promoters Devi Prasad Shetty and Shakuntala Shetty are selling 20,43,608 shares each.
The offer constitutes 12 per cent of the post issue share capital.
IPO Particulars
Opens on December 17, 2015
Closed on December 21, 2015
Offer for sale of up to 2,45,23,297 shares
Issue size : Rs. 613 crores at upper end of the price band
Price Band : Rs. 240-250 per share
Bid Size : 60 Shares and multiple of 60 shares thereafter
Listing proposed at NSE & BSE
Valuation Analysis Apparently the IPO price band is on higher side, say at 200 PE ratio but another aspect is that topline of the company is growing at very very high rate and half of its hospitals are still below maturity period of 5 years. Once that period is crossed, these hospitals also earn strong returns and will change Net profit and Earnings per share. More of in poor country like India, affordable healthcare will always be welcome feature and will be the longest surviving company. and for that reason, more valuation can be given to this share.
one more aspect that through this IPO , you will be doing investment as well as philanthropic work.
Donot forget this noble aspect. and … also understand that Stockmarkets always value such philanthropic aspects, what matter the IPO pricing is.
Zerodha (Trading & Demat Account)
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