August 21, 2024
New Delhi, India
SME IPO
Broach Lifecare Hospital made a remarkable debut on the Bombay Stock Exchange (BSE) on Wednesday, August 21, as its shares listed at a 90% premium over the issue price. Following a highly successful initial public offering (IPO), the shares opened at ₹47.50, significantly higher than the issue price of ₹25, and quickly reached the upper price band of ₹49.87.
IPO Overview: The ₹4.02 crore Broach Lifecare IPO, categorized as a Small and Medium Enterprises (SME) issue, was open for subscription from August 13 to August 16. The IPO received an overwhelming response, with an overall subscription rate of 159.11 times. Investors bid for 24.24 crore shares against the 1.524 million shares offered, reflecting strong demand for the stock.
Share Price Performance: Broach Lifecare shares commenced trading on the BSE at ₹47.50, representing a 90% premium over the IPO issue price of ₹25. The stock continued its upward momentum, quickly hitting its upper price band of ₹49.87, demonstrating investor confidence and enthusiasm for the company’s prospects.
Utilization of Funds: Broach Lifecare plans to utilize the net proceeds from the IPO for general corporate purposes, the development of a medical tourism web portal, and the acquisition of new medical equipment. These investments aim to enhance the company’s service offerings and expand its market presence.
Company Background: Broach Lifecare Hospital specializes in managing boutique hospitals and provides a range of non-invasive cardiology services. These services include treadmill testing, electrocardiography, 2D echocardiography, stress testing, dobutamine stress echocardiography, ambulatory blood pressure measurement, and Holter monitoring. The hospital caters to patients with heart conditions, offering round-the-clock care.
Financial Performance: Despite the strong market debut, Broach Lifecare’s financial performance has seen a decline over the past three fiscal years. According to the company’s Red Herring Prospectus (RHP), its revenue from operations was ₹3.7 crore in FY21, dropping to ₹3.4 crore in FY22, and further to ₹1.8 crore in FY23. The company’s profit also decreased over the same period, with ₹76.52 lakh in FY21, ₹45.91 lakh in FY22, and ₹13.85 lakh in FY23.
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