The large part of the IPO proceeds will be used to pare debt and some for improvisation of facilities and buying equipment, said Vikram Shah, Chairman and MD, Shalby Hospitals.
From the hospital sector - Shalby Hospitals' Rs 500 crore IPO has opened for subscription today.
Throwing more light on the business model and outlook going forward Vikram Shah, Chairman and MD, Shalby Hospitals said they are the largest joint preplacement center in the entire world.
He said large part of the IPO proceeds will be used to pare debt and some for improvisation of facilities and buying equipment.
Once the balance sheet is free of debt they can leverage it after six months.
Incorporated in 2004, Shalby is a multi-specialty chain of hospitals in India led by Dr Vikram Shah, an Orthopedic Surgeon with more than 25 years of professional experience. Focused majorly on tertiary care, their hospitals also offer quaternary healthcare services to patients in various areas of critical specializations.
They have a total of 11 hospitals from Mohali to Goa and from Jabalpur to Ahmedabad. The hospital size is small of around 200 plus minus 20-30 beds.
He said, their return on capital employed is very high compared to peers and so are also able to remain EBITDA positive at 27-28 percent occupancy. So, he is confident of maintaining margins above 20 percent going forward.
Their bed capacity is over 2000 beds and 840 beds are currently operational with two mature hospitals and four that have begun recently, said Shah.Usually, for them one hospital takes couple of years to breakeven, he said.