Ahmedabad-based Shalby Ltd, incorporated on August 30, 2004, is one of the leading multi-specialty hospital chains in India, according to a Frost & Sullivan (F&S) report. The company has tertiary care hospitals, some of which also offer quaternary healthcare services to patients in various areas of specialisation such as orthopaedics, complex joint replacements, cardiology, neurology, oncology, and renal transplantations. As on the date of its Red Herring Prospectus (RHP), the company provided inpatient and outpatient healthcare services through 11 operational hospitals with aggregate bed capacity of 2,012 beds.
As on June 30, 2017, the company had nine operational hospitals with an aggregate operational bed count of 841 beds. According to the F&S report, the company had a 15% market share of all joint replacement surgeries conducted by private corporate hospitals in India in 2016.
As on the date of its RHP, the company provided outpatient services through 47 outpatient clinics and ran 10 shared-surgery centres within third-party hospitals, called Shalby Arthroplasty Centre of Excellence (SACE), where it offers orthopaedic healthcare services including surgeries. Since March 2007, the company has conducted an aggregate of 92,100 surgeries, and provided healthcare services to an aggregate of 1,025,533 patients, consisting 133,652 inpatients and 891,881 outpatients.
Shalby has domestic and overseas outreach through a network of hospitals in India and outpatient clinics and SACE located in India, Africa, and the Middle East. It has strong presence in western and central India and focuses on tier – I and tier – II cities. The company’s hospitals operate across five states; its outpatient clinics operate across 37 cities in 12 states in India, and its SACE are present in seven cities in six states in India. The company is expanding its footprint in western and central India with hospitals being set up in Nashik and Vadodara.
The company’s international footprint consists of five outpatient clinics; one SACE in Africa, and two SACE in the UAE.
As on June 30, 2017, Shalby had employed 2,049 employees and engaged 319 professional consultants, consisting of 294 doctors, who are full-time consultants and 25 doctors who are part-time consultants. Its staff strength comprises 699 nurses and 1,350 paramedical, corporate and support staff and pharmacists.
- Rs. 504.50-504.80 crore;
fresh issue of Rs. 480 crore and
offer for sale of 10,00,000 equity shares - 60 equity shares and in multiples thereafter
- QIBs - 50%, NIBs - 15%, Retail - 35%
- Rs. 10
- ASBA mandatory (No cheques will be accepted)
- Proposed to be listed on BSE and NSE
- Edelweiss Financial Services Ltd, IDFC Bank Ltd and IIFL Holdings Ltd
- Karvy Computershare Pvt Ltd
- Leadership in orthopaedics and strong capabilities in other specialties
- Integrated and scalable business model enhancing its patient reach
- An experienced player with longstanding presence and brand recall
- Track record of operating and financial performance and growth
- Ability to attract quality doctors, nurses, paramedical, and other staff
- Experienced and qualified professional management team with strong execution track record
The offer comprises fresh issue of Rs. 480 crore and an offer for sale of 10,00,000 equity shares
Fresh issue-
Shalby Ltd proposes to utilise the net proceeds from the fresh issue towards:
I.Repayment or prepayment in full, or in part of certain loans availed by the company
II.Purchase of medical equipment for existing, recently set up and upcoming hospitals
III.Purchase of interiors, furniture, and allied infrastructure for upcoming hospitals
IV.General corporate purposes
Offer for sale
The company will not receive any proceeds from the offer and all the proceeds will be received by the selling shareholders.
An initial public offering (IPO)/public issue is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves the way for listing and trading of the issuer’s securities.
The shares are initially issued in the primary market at an offering price determined by the lead manager(s)/the merchant banker(s) to the IPO.
The primary market consists of a syndicate of investment banks and broker dealers that the lead managers assemble and that allocate shares to institutional, high net worth individuals (HNI) and individual/retail investors.
As far as IPOs are concerned, a price band is a value-setting method whereby a seller indicates an upper and lower cost range, between which the buyers/investors are able to place their bids. The price band's floor and cap provide guidance to the buyers.
It is up to the company to decide on the IPO price or the price band, in consultation with the lead managers.
The basis of IPO price is disclosed in the offer document. The issuer is required to disclose in detail about the qualitative and quantitative factors justifying the IPO price.
The IPO price is normally based on such factors as the company’s financials, products and services, income stream as well as the demand for the shares and current market conditions.
The lead managers must determine a fair offering price, which takes into consideration the need for the company to raise capital while offering the new issue at a price which represents a fair value of the shares.
A Red Herring Prospectus (RHP) is a document submitted by a company (issuer) as part of a public offering or an IPO of securities (either stocks or bonds).
A retail individual investor means an investor who applies or bids for securities of or for a value of not more than Rs 2,00,000.
Yes. He can bid in a book-built IPO for a value not more than Rs 2,00,000. Any bid made in excess of this will be considered in the HNI category.
Yes. Investors can change or revise the quantity or price in the bid using the form for changing/revising the bid that is available along with the application form. However, the entire process of changing or revising the bids shall be completed before the IPO closes.
In case of fixed price issues, investors are intimated about the CAN/Refund order within 10 days of the closure of the IPO.
In case of book built IPOs, the basis of allotment is finalised by the book-running lead managers within two weeks from the closure of the issue. The registrar then ensures that the demat credit or refund as applicable is completed within 6 working days of the closure of the issue.
In the case of book-built issues, the exchanges (Bombay Stock Exchange/National Stock Exchange) display the data regarding the bids obtained (on a consolidated basis between both these exchanges).
The data regarding the bids is also available category-wise.
Investors are entitled to receive a Confirmatory Allotment Note (CAN) in case they have been allotted shares within 6 working days from the closure of a book Built issue. The registrar has to ensure that the demat credit or refund as applicable is completed within 6 working days of the closure of the book-built issue.
The lead managers also publish an advertisement at least in an English national daily with wide circulation, one Hindi national paper and a regional language daily circulated at the place where registered office of the issuer company is situated.
The listing on the stock exchanges is done within seven days from the finalisation of the issue.
Ideally, it would be around three weeks after the closure of the book-built issue.
In case of fixed price issue, it would be around 10 days after closure of the issue.