Hannah Joseph Hospital Limited IPO

Hannah Joseph Hospital Limited is a multi-specialty healthcare services provider based in Madurai, Tamil Nadu. The company was originally incorporated in October 2011 as a private limited entity and was subsequently converted into a public limited company in July 2022. Over the years, the hospital has established itself as a regional healthcare institution offering secondary and tertiary medical care services.

The hospital operates from its primary facility located on the Madurai–Tuticorin Ring Road, a strategically accessible location that allows it to cater to patients from Madurai city as well as surrounding semi-urban and rural districts. The facility is equipped with inpatient beds, operation theatres, intensive care units, diagnostic infrastructure, and outpatient consultation services across multiple medical disciplines.

Hannah Joseph Hospital focuses on delivering affordable and accessible healthcare while maintaining clinical quality standards. Its services span general medicine, general surgery, orthopaedics, obstetrics and gynaecology, paediatrics, critical care, diagnostics, and other allied medical services. The company also plans to strengthen its oncology-related services through the proposed radiation oncology unit as disclosed in the RHP.

India's healthcare sector is one of the fastest-growing service industries, driven by rising population, increasing life expectancy, higher incidence of lifestyle diseases, and improving health awareness. Tier-II and Tier-III cities, such as Madurai, are witnessing growing demand for organized healthcare facilities due to limited public healthcare infrastructure and rising preference for private hospitals.

Private hospitals play a critical role in bridging healthcare access gaps in non-metro regions. Factors such as government health insurance schemes, rising penetration of private insurance, and medical infrastructure investments are supporting industry growth. However, the sector is capital intensive and faces regulatory, pricing, and manpower-related challenges.

Investment in Hannah Joseph Hospital Limited is subject to various risks, including but not limited to:

• Dependence on key doctors, consultants, and medical professionals for service delivery.
• Regulatory risks related to healthcare laws, clinical establishment regulations, and medical compliances.
• High fixed costs and operating leverage inherent in hospital operations.
• Exposure to medico-legal claims, patient safety risks, and litigation.
• Requirement of continuous capital expenditure for medical equipment and infrastructure.
• Competition from other private hospitals and government healthcare facilities.

The promoters of Hannah Joseph Hospital Limited are Mosesjoseph Arunkumar, Fenn Kavitha Fenn Arunkumar, Arunkumar Nalina, and Noyel Arunkumar. The promoters have been closely involved in the establishment, expansion, and day-to-day management of the hospital.

They collectively bring experience in healthcare administration, hospital operations, and strategic decision-making. Post IPO, the promoters will continue to retain significant shareholding and management control, ensuring continuity in leadership and vision.

The hospital is managed by a professional leadership team supported by experienced clinicians and administrative staff. Key managerial personnel include:

• Mosesjoseph Arunkumar – Chairman and Managing Director
• Daniel Dayanand Fenn – Chief Financial Officer
• Yuvaraj Saravanan – Company Secretary and Compliance Officer

The management team oversees clinical governance, financial management, regulatory compliance, and strategic growth initiatives.

As per disclosures in the RHP, the company, its promoters, and directors are subject to certain legal and regulatory proceedings arising in the ordinary course of business. These include matters related to taxation, statutory dues, and regulatory compliances. None of the disclosed litigations are considered material enough to adversely affect the company's operations or financial viability at present, though unfavourable outcomes may impact performance.

Key Financial Ratios (FY 2025)

Cash Flow Analysis

The company's cash flows reflect the capital-intensive nature of hospital operations. Operating cash flows have improved in recent years due to increased patient volumes and better capacity utilization. Investing cash flows primarily relate to purchase of medical equipment, facility upgrades, and infrastructure expansion. Financing cash flows include repayment of borrowings and infusion of funds for capital expenditure.

The net proceeds from the IPO are proposed to be utilised for:

• Setting up a radiation oncology unit including procurement of medical equipment.
• Repayment or prepayment of certain borrowings.
• Funding capital expenditure and infrastructure enhancement.
• General corporate purposes.

Offer Structure

Valuation

Based on the upper price band, the IPO is valued at a moderate multiple of its FY25 earnings. Considering the hospital's improving profitability, expanding service offerings, and regional presence, the valuation appears reasonable relative to other SME healthcare listings. However, investors should consider regulatory risks, execution challenges, and SME liquidity constraints.

Capital Structure

The IPO will result in an increase in paid-up equity share capital through a fresh issue of shares. The proceeds are expected to strengthen the balance sheet, reduce leverage, and support long-term growth initiatives. Promoter shareholding will dilute post issue while retaining controlling interest.

Related Party Transactions

The company has entered into related party transactions with promoter-linked entities in the normal course of business, including remuneration, lease arrangements, and reimbursements. These transactions are disclosed in the RHP and are conducted on an arm's length basis.

Corporate Governance

Post listing, Hannah Joseph Hospital Limited will comply with SEBI (LODR) Regulations applicable to SME-listed companies. The company has constituted key board committees including the Audit Committee, Nomination and Remuneration Committee, CSR Committee, and Stakeholders' Relationship Committee to ensure governance and regulatory compliance.

Management Discussion

The management expects growth to be driven by increasing patient inflows, expansion of specialised services, improved utilisation of hospital infrastructure, and growing healthcare demand in the region. Focus areas include clinical quality, cost control, technology adoption, and prudent capital allocation while managing regulatory and operational risks.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Investors should read the Red Herring Prospectus carefully before making any investment decision.