ABH Healthcare IPO (24-27 August) Analysis
Updated: Sep 11
IPO Analysis | NSE Emerge | 100% Book Built Issue (Pure Fresh Issue) | Regulation 229(2) and 253(1)
Based on Red Herring Prospectus dated August 13, 2026 | Multi-Specialty Tertiary Care Hospital (150 Beds, 25 Specialties) | Ferozepur, Punjab
STATUS: LIVE RHP, NO ANCHOR INVESTOR PORTION, BIDDING OPENS AUGUST 24 AND CLOSES AUGUST 26, 2026 Pure Fresh Issue of up to 34,29,600 Equity Shares | No Offer for Sale | NSE Emerge Platform RoNW of 34.26% (FY26) Exceeds 2 of 3 Listed Hospital Peers | Elevated but Improving Leverage (Debt-Equity 5.69x to 3.20x) | Single-Hospital Revenue Concentration |
ABH Healthcare Limited was incorporated as ABH Healthcare Private Limited on March 2, 2021, and converted to a public limited company on November 15, 2024. Its CIN is U85300PB2021PLC052886, with its registered office in Ferozepur, Punjab. The Promoters are Dr. Kamal Baghi, Dr. Saurabh Baghi and Dr. Vaishali Saini.
The Company operates a single, 150-bed multi-specialty tertiary care hospital in Ferozepur, Punjab, under the 'Anil Baghi Hospital' brand, focused on Tier 3 city healthcare delivery.
The hospital was originally established in 1985 with 30 beds and was acquired by the Company in 2022 through a Business Transfer Agreement with Promoter Dr. Kamal Baghi's sole proprietorship. Since acquisition, the Company has expanded bed capacity and now offers 25 medical specialties, including cardiac sciences, neurology, minimally invasive spine and brain surgery, gastroenterology, urology, nephrology, obstetrics and gynaecology, and critical care.
The hospital holds NABH accreditation (since 2021) and NABH Digital Standards accreditation (since FY 2025), and is empanelled with more than 30 private and public health insurers and third-party administrators, alongside major government schemes including ECHS, Railways, FCI, BSNL and Ayushman Bharat.
Revenue from operations grew from Rs.4,138.02 Lakhs in Fiscal 2024 to Rs.5,250.69 Lakhs in Fiscal 2026, while PAT grew from Rs.165.56 Lakhs to Rs.563.94 Lakhs over the same period, more than 3 times. EBITDA margin improved substantially, from 16.66% to 28.03%, while the Company's Debt-Equity ratio, though still elevated (typical of a capital-intensive hospital operator), improved from 5.69 times to 3.20 times over the 3 disclosed years.
Key Basics
Particulars | Details |
Document Type | Red Herring Prospectus (RHP) dated August 13, 2026. This is a live offer: Bid or Issue opens Monday, August 24, 2026 and closes Wednesday, August 26, 2026. The Company has explicitly confirmed no Anchor Investor participation for this Issue. |
Issue Structure | 100% Book Built Issue, entirely a Fresh Issue of up to 34,29,600 Equity Shares (no Offer for Sale), of which 1,72,800 shares are reserved for the Market Maker. The Issue and Net Issue will constitute 30.01% and 28.49% respectively of post-Issue paid-up capital. Face value Rs.10 per share. |
Face Value | Rs.10 per Equity Share. |
Promoters | Dr. Kamal Baghi, Dr. Saurabh Baghi and Dr. Vaishali Saini. |
Selling Shareholders | Not applicable. This Issue is entirely a Fresh Issue with no Offer for Sale. |
Eligibility Route | Regulation 229(2) and 253(1) of Chapter IX of the SEBI ICDR Regulations, 2018, as the Company's post-Issue paid-up capital is less than or equal to Rs.1,000.00 Lakhs. |
Listing Exchange | Emerge Platform of the National Stock Exchange of India (NSE Emerge), with in-principle approval dated December 1, 2025. |
BRLM | Fedex Securities Private Limited. |
Registrar | Bigshare Services Private Limited. |
Issue Dates | Opens: Monday, August 24, 2026. Closes: Wednesday, August 26, 2026. No Anchor Investor Bidding Date, as the Company has confirmed no anchor participation for this Issue. |
Listed Peers, One Line | 3 listed hospital peers (Sangani Hospitals, Maitreya Medicare, Asarfi Hospital); the Company's RoNW exceeds 2 of the 3, including 1 currently loss-making peer. |
A distinctive structural feature of this offer is the explicit absence of an Anchor Investor portion, similar to a small number of other companies in this report series. The Company's entire business is concentrated in a single hospital facility, a genuine structural concentration investors should weigh carefully alongside the otherwise strong growth and profitability trend.
How Will the IPO Money Be Used?
Object | Estimated Amount (Rs. Lakhs) | Substantiation |
Repayment/prepayment, in part or full, of certain borrowings | 1,700.00 | The largest single Object by a wide margin, a specific rupee figure disclosed and scheduled for full deployment within FY 2026-27; directly addresses the Company's elevated leverage. |
Funding working capital requirements | 500.00 | A specific rupee figure disclosed, scheduled for full deployment within FY 2026-27. |
Funding inorganic growth through unidentified acquisitions and general corporate purposes | [TBD] | Capped at 35% of Gross Proceeds combined, of which unidentified acquisitions cannot exceed 25% and general corporate purposes cannot exceed 15% of Gross Proceeds or Rs.1,000.00 Lakhs, whichever is lower. |
The largest and most concrete Object of this Issue is debt repayment (Rs.1,700.00 Lakhs), directly targeting the Company's elevated Debt-Equity ratio, followed by a modest working capital allocation.
As with several other companies in this report series, a comparatively large, flexible bucket (up to 35% of Gross Proceeds combined) is reserved for unidentified acquisitions and general corporate purposes, giving the Company optionality to pursue inorganic growth (such as additional hospital facilities) without a currently identified target.
None of the fund requirements have been independently appraised by any bank or financial institution, and the Gross Proceeds, Net Proceeds and General Corporate Purposes figures remain undetermined until the Issue Price is fixed.
Financial Performance
P&L and Key Metrics (Rs. Lakhs unless stated)
Particulars | FY 2026 | FY 2025 | FY 2024 |
Revenue from operations | 5,250.69 | 4,926.71 | 4,138.02 |
Revenue growth (%) | 6.58 | 19.06 | 39.75 |
EBITDA | 1,471.65 | 1,319.51 | 689.28 |
EBITDA margin (%) | 28.03 | 26.78 | 16.66 |
Profit after tax | 563.94 | 534.70 | 165.56 |
PAT margin (%) | 10.74 | 10.85 | 4.00 |
Return on equity / RoE (%) | 39.07 | 59.75 | 30.33 |
Return on capital employed (%) | 19.09 | 22.70 | 14.96 |
Debt to equity ratio (times) | 3.20 | 3.62 | 5.69 |
Fixed asset turnover ratio (times) | 1.25 | 1.35 | 1.23 |
Net worth | 1,726.54 | 1,160.22 | 629.53 |
Cash Flow Highlights (Rs. Lakhs)
Particulars | FY 2026 | FY 2025 | FY 2024 |
Net cash from operating activities | 211.07 | 354.42 | 88.81 |
Net cash used in investing activities | (914.30) | (453.41) | (1,306.27) |
Net cash from financing activities | 944.80 | 158.48 | 1,203.91 |
Independently recomputed, revenue growth decelerated from a very strong 39.75% in FY24 (immediately following the hospital acquisition) to 19.06% in FY25 to a more modest 6.58% in FY26, while PAT grew dramatically, more than 3 times, from Rs.165.56 Lakhs to Rs.563.94 Lakhs over the same period, driven by substantial EBITDA margin expansion (16.66% to 28.03%) as the acquired hospital's operations matured and scaled.
RoE has been volatile (30.33% to 59.75% to 39.07%), a pattern consistent with a rapidly growing equity base (Net worth more than doubled from Rs.629.53 Lakhs to Rs.1,726.54 Lakhs) interacting with strong but uneven year-to-year profit growth, rather than deteriorating underlying performance.
The Company's own Risk Factors disclose negative cash flows, but specifically from investing activities in all 3 years (reflecting deliberate, ongoing capital expenditure on hospital expansion and equipment), not from operations: operating cash flow was positive in every disclosed year (Rs.88.81 Lakhs to Rs.354.42 Lakhs to Rs.211.07 Lakhs).
This is a benign pattern consistent with a capital-intensive healthcare business investing in growth, similar to several other companies in this report series where 'negative cash flow' framing in the risk factors did not reflect an operating cash generation problem.
The Company's Debt-Equity ratio, while still elevated in absolute terms (3.20 times as of FY26), has improved meaningfully from 5.69 times in FY24, and this Issue's largest Object is specifically directed at further reducing this leverage.
How Does It Compare to Peers?
The RHP discloses 3 listed hospital peers, Sangani Hospitals, Maitreya Medicare and Asarfi Hospital, ranging from roughly comparable in scale (Maitreya Medicare) to more than 3 times larger (Asarfi Hospital). On RoNW, ABH's 34.26% is the highest of all 4 companies in the set, exceeding Sangani Hospitals (16.20%) and Asarfi Hospital (18.65%) meaningfully, and standing in sharp contrast to Maitreya Medicare, which is currently loss-making (RoNW of negative 8.10%).
ABH's PAT margin (10.74%) is also the highest of the 4. This is a genuinely favourable comparison for the Company on profitability grounds, though investors should note the peer set includes 1 loss-making company, which limits how representative this comparison is of the broader Tier 2/3 hospital sector.
Key Risks
l The Company's revenue is entirely dependent on its single hospital facility in Ferozepur, Punjab; any adverse change in the local economic, demographic or competitive environment, or any disruption to this single facility, would directly and disproportionately affect the entire business.
l The Company carries a high Debt-Equity ratio (3.20 times as of FY26, though improved from 5.69 times in FY24), and further increases in borrowings could increase funding risk; the Company has also availed unsecured loans from Promoters and inter-corporate deposits from third-party lenders that are repayable on demand.
l The Company does not own the premises where its Registered Office and hospital are located, concentrating operational continuity risk in a leased facility.
l The Company has a documented history of delayed statutory filings and payments (GST, TDS, ESIC and PF returns), resulting in late fees and interest; while individually small, the Company acknowledges accumulated amounts from continued delays could adversely affect cash flows.
l The Company is unable to obtain certain records of educational qualifications and experience certificates for some Directors, KMPs and SMPs, and certain corporate records of entities from which Promoters have disassociated are not traceable.
l The Company, its Director and Promoters and Controlled Entities are party to certain litigation and claims, and the Company carries commitments and contingent liabilities that could affect its financial condition if they materialise.
l The Company's ability to provide affordable healthcare depends on maintaining high patient volume, occupancy rates and reducing average length of stay; any inability to do so could affect profitability.
l A significant portion of revenue derives from tie-up arrangements with government organisations and insurance schemes, exposing the Company to policy and reimbursement risk beyond its direct control.
l The Company's diagnostic imaging equipment involves radiation during operation, exposing it to related liability risk, and the healthcare industry is highly regulated, requiring various registrations, licenses and permits subject to periodic renewal.
l The Company has entered into related party transactions in the past (8.78%, 8.36% and 7.10% of revenue across FY26, FY25 and FY24 respectively) and may continue to do so, potentially involving conflicts of interest.
l There is no monitoring agency appointed to oversee utilisation of Issue proceeds, and the funding requirements and deployment schedule are based on management estimates not independently appraised by any bank or financial institution.
l The Company faces competition from other hospitals and healthcare facilities in its region, and its arrangements with certain doctors may give rise to conflicts of interest or time-allocation constraints.
Positives to Note
l PAT grew more than 3 times over the disclosed track record (Rs.165.56 Lakhs to Rs.563.94 Lakhs), with EBITDA margin nearly doubling (16.66% to 28.03%) as the acquired hospital's operations matured and scaled.
l RoNW of 34.26% and PAT margin of 10.74% in FY 2026 are both the highest among all 4 companies in the disclosed peer set, including 2 larger listed hospital operators and 1 currently loss-making peer.
l The Company has been operating cash flow positive in every one of the 3 disclosed fiscal years, and the negative cash flow figures it discloses relate specifically to deliberate capital expenditure on hospital expansion, not core operations.
l The Company's Debt-Equity ratio has improved substantially, from 5.69 times in FY24 to 3.20 times in FY26, and this Issue's largest specifically itemised Object (debt repayment) would further reduce leverage if deployed as planned.
l The hospital holds NABH accreditation and NABH Digital Standards accreditation, and is empanelled with more than 30 private and public insurers plus all major applicable government health schemes in its region, evidencing a genuinely broad payer network for a single-facility operator.
l The Company has more than 35 years of underlying operating history in the region (the hospital itself was established in 1985), providing an established local reputation and patient base ahead of this listing.
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