The company completed its Initial Public Offering (IPO) on the NSE SME platform, with the issue opening on May 30, 2024, and closing on June 3, 2024, as per its Red Herring Prospectus (RHP) filed with SEBI.22 August 2026SME IPO - NSE SME · 7 min read

ABH Healthcare Limited — Pre-IPO Research Report

ABH Healthcare Limited, incorporated in 2021, operates Anil Baghi Hospital, a 150-bed tertiary care facility in Ferozepur, Punjab, offering 25 medical specialties. The company recently completed its NSE SME IPO, which opened on May 30, 2024, and closed on June 3, 2024, making it relevant for investors tracking newly listed small and medium enterprises in the healthcare sector.

Founded

2021

Headquarters

Ferozepur, Punjab, India

Hospital Name

Anil Baghi Hospital

Number of Beds

150 (as per the DRHP filed with SEBI)

Number of Specialties

25 (as per the DRHP filed with SEBI)

IPO Listing Platform

NSE SME

What the company is (and how it makes money)

Operates Anil Baghi Hospital, a 150-bed multi-specialty hospital located in Ferozepur, a Tier 3 city in Punjab.
Provides tertiary healthcare services across 25 medical specialties, including cardiology, orthopedics, general surgery, and gynecology.
Generates revenue primarily from patient services, including consultations, surgeries, room charges, and diagnostic services.
Focuses on serving the local population in Ferozepur and surrounding rural areas, leveraging its established presence.
Employs a mix of full-time and visiting doctors, nurses, and other support staff to deliver medical care.

Financial snapshot (officially disclosed only)

For the nine months ended December 31, 2023, the company reported total revenue of ₹2,238.83 lakhs and a profit after tax of ₹283.43 lakhs (per the RHP filed with SEBI).
For the fiscal year ended March 31, 2023, the company reported total revenue of ₹2,927.99 lakhs and a profit after tax of ₹303.41 lakhs (per the RHP filed with SEBI).
For the fiscal year ended March 31, 2022, the company reported total revenue of ₹2,238.16 lakhs and a profit after tax of ₹160.77 lakhs (per the RHP filed with SEBI).
For the fiscal year ended March 31, 2021, the company reported total revenue of ₹1,030.01 lakhs and a profit after tax of ₹6.79 lakhs (per the RHP filed with SEBI).

The moat

**Local Brand Recognition:** Established presence and reputation in Ferozepur and surrounding Tier 3 regions can create a strong local referral network and patient loyalty.
**Access to Tier 3 Market:** Targeting underserved Tier 3 cities reduces direct competition from large corporate hospital chains prevalent in metros, potentially allowing for better market penetration.
**Specialized Service Offering:** Providing 25 specialties in a Tier 3 setting addresses a broad range of local healthcare needs, potentially reducing the need for patients to travel to larger cities.
**Doctor Relationships:** Long-standing relationships with local doctors and consultants can be a significant asset in attracting and retaining patients in a community-centric healthcare model.

Where it is in the IPO pipeline

The company filed its Draft Red Herring Prospectus (DRHP) with SEBI on March 27, 2024.
The IPO comprised a fresh issue of 16,18,000 equity shares, aggregating to ₹12.46 crore, with no Offer for Sale (OFS) component (per the RHP filed with SEBI).
The proceeds from the fresh issue were earmarked for funding capital expenditure, meeting working capital requirements, and general corporate purposes (per the RHP filed with SEBI).
The IPO price was fixed at ₹77 per equity share (per the RHP filed with SEBI).
The IPO opened on May 30, 2024, and closed on June 3, 2024, listing on the NSE SME platform (per the RHP filed with SEBI).

What most investors miss

**Tier 3 ARPOB Dynamics:** While Tier 3 markets offer less competition, they typically have lower Average Revenue Per Occupied Bed (ARPOB) compared to metros, impacting overall revenue per patient.
**Key Doctor Dependency:** The success of a hospital, especially in a smaller city, can be heavily reliant on a few senior doctors or specialists. Their departure could significantly impact patient footfall and revenue.
**Scalability Challenges:** Expanding beyond Ferozepur to other Tier 3 cities requires replicating the local brand trust and doctor network, which can be capital-intensive and time-consuming.
**Working Capital Intensity:** Healthcare is a working capital-intensive business, with receivables from insurance companies and government schemes potentially leading to cash flow cycles that need careful management.
**Regulatory Scheme Reliance:** The company's revenue mix may have a material dependency on government health schemes like Ayushman Bharat, making it susceptible to changes in policy or reimbursement rates.
**Promoter Group's Other Interests:** As common in smaller, promoter-driven entities, it is crucial to examine the DRHP for any related-party transactions or other business interests of the promoter group that could create potential conflicts.

Red flags and what to scrutinise

**Single Hospital Concentration Risk:** The company's entire operations and revenue are derived from a single hospital in Ferozepur, making it highly vulnerable to local competition, regulatory changes, or operational disruptions in that specific geography.
**Talent Attraction & Retention in Tier 3:** Attracting and retaining highly skilled medical professionals, especially specialists, to a Tier 3 city like Ferozepur can be challenging compared to larger urban centers, potentially impacting service quality and expansion plans.
**Regulatory and Compliance Burden:** The healthcare sector is heavily regulated. Non-compliance with medical standards, licensing requirements, or environmental norms could lead to penalties, operational shutdowns, or reputational damage.
**Competition from Expanding Chains:** While currently serving a Tier 3 market, larger regional or national hospital chains may eventually expand into these areas, intensifying competition and potentially impacting pricing power.
**Debt Levels and Servicing:** Investors should scrutinize the company's debt profile, interest coverage ratios, and ability to service existing and future debt, especially as it plans for capital expenditure.
**Litigation Risks:** Healthcare providers are often subject to medical negligence claims or other legal disputes. The DRHP should be reviewed for any material outstanding litigations that could impact financials or reputation.

How to evaluate it (a diligence checklist)

**Analyze DRHP/RHP Disclosures:** Carefully read the entire Red Herring Prospectus (RHP) on the SEBI website for comprehensive details on business operations, risks, financials, and management discussions.
**Assess Growth Drivers in Tier 3:** Evaluate the specific demand drivers for healthcare services in Ferozepur and surrounding regions, including demographic trends, health awareness, and local economic development.
**Unit Economics & ARPOB Trends:** Examine trends in Average Revenue Per Occupied Bed (ARPOB), Occupancy Rates, and Average Length of Stay (ALOS) to understand operational efficiency and revenue generation per patient.
**Management Background and Governance:** Scrutinize the background and experience of the key management personnel, their track record, and the corporate governance practices outlined in the RHP.
**Utilization of IPO Proceeds:** Verify how the funds raised from the fresh issue were utilized post-listing, checking for adherence to the stated objectives in the RHP.
**Peer Comparison:** Compare ABH Healthcare's operational metrics and financial performance with other listed SME healthcare providers or regional hospitals, if comparable data is available, to gauge relative valuation and efficiency.

Official references

SEBI - Draft offer documents & public issues SEBI - Securities and Exchange Board of India NSE India - listings & filings BSE India - listings & filings MCA - company master data & financial filings

The company's Red Herring Prospectus (RHP) filed with SEBI
Company filings on the NSE SME platform post-listing
Official company website (if available)
Audited financial statements filed with the Ministry of Corporate Affairs (MCA)

Frequently asked questions

What is ABH Healthcare Limited's primary business?

ABH Healthcare Limited primarily operates Anil Baghi Hospital, a 150-bed multi-specialty tertiary care hospital in Ferozepur, Punjab, offering services across 25 medical specialties.

When did ABH Healthcare Limited's IPO take place?

The company's IPO opened on May 30, 2024, and closed on June 3, 2024, listing on the NSE SME platform, as per its RHP filed with SEBI.

What was the structure of ABH Healthcare Limited's IPO?

The IPO was a fresh issue of 16,18,000 equity shares, aggregating to ₹12.46 crore, with no Offer for Sale (OFS) component, as stated in the RHP filed with SEBI.

What were the stated uses of the IPO proceeds?

As per the RHP filed with SEBI, the net proceeds from the fresh issue were intended for funding capital expenditure, meeting working capital requirements, and general corporate purposes.

Where is Anil Baghi Hospital located?

Anil Baghi Hospital is located in Ferozepur, Punjab, which is considered a Tier 3 city.

This report is prepared by Neoma Capital for information and investor-education purposes only. It is not investment advice, a recommendation, or an offer to buy or sell any security. Unlisted and pre-IPO shares are illiquid, high-risk and may never list. Any figures mentioned are only those officially disclosed by the company, SEBI, the stock exchanges or the MCA, and may change. Neoma Capital does not guarantee accuracy or completeness. Verify everything independently from official sources and consult a SEBI-registered adviser before making any decision. Neoma Capital, 22 August 2026.