ABH Healthcare IPO: ₹22.00 Cr Issue Filed with SEBI, Key Details
- ABH Healthcare files DRHP for ₹22.00 Crore SME IPO to repay debt and fund working capital.
- PAT grew from ₹1.66 Cr (FY2024) to ₹5.64 Cr (FY2026), showing strong profitability improvement.
- Key risk: 100% revenue concentration from a single hospital in Ferozepur, Punjab.
- IPO opens on 24-Aug-2026; listing scheduled for 01-Sep-2026.
- Debt-to-equity ratio improved from 5.69 to 3.20 between FY2024 and FY2026.
*this image is generated using AI for illustrative purposes only.
ABH Healthcare Limited, a multi-specialty tertiary care hospital operator based in Ferozepur, Punjab, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an SME IPO. The company proposes a fresh issue of ₹22.00 Crore to repay borrowings and fund working capital. The IPO is scheduled to open on 24-Aug-2026.
Company Overview
ABH Healthcare operates the "Anil Baghi Hospital," a 150-bed facility offering 25 medical specialties including cardiac sciences, neurology, and critical care. Incorporated in March 2021, the company acquired the hospital business in March 2022, inheriting a legacy dating back to 1985. The management team includes U.S.-trained doctors Dr. Kamal Baghi (MD) and Dr. Saurabh Baghi (CEO). The hospital is empanelled with over 30 insurance companies and government schemes like ECHS and Ayushman Bharat.
Offer Details
The company is raising funds through a fresh issue only, with no Offer for Sale (OFS). The price band has not been disclosed in the DRHP.
| Parameter | Details |
|---|---|
| Issue Type | Fresh Issue |
| Issue Size | ₹22.00 Crore |
| Price Band | Not Available |
| IPO Open Date | 24-Aug-2026 |
| IPO Close Date | 27-Aug-2026 |
| Allotment Date | 28-Aug-2026 |
| Listing Date | 01-Sep-2026 |
Objects of the Issue
The proceeds will be utilized as follows:
- Repayment/prepayment of certain borrowings: ₹17.00 Crore
- Funding working capital requirements: ₹5.00 Crore
- Inorganic growth and general corporate purposes: Balance amount (subject to SEBI limits)
Financial Highlights
The company has shown significant growth in profitability over the last three fiscal years. Revenue from operations grew from ₹41.38 Cr in FY2024 to ₹52.51 Cr in FY2026. Profit After Tax (PAT) surged from ₹1.66 Cr to ₹5.64 Cr during the same period.
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue from Operations (₹ Cr) | 41.38 | 49.27 | 52.51 |
| Profit After Tax (₹ Cr) | 1.66 | 5.35 | 5.64 |
| EBITDA (₹ lakhs) | 689.28 | NA | 1,444.54 |
| Debt-to-Equity Ratio | 5.69 | ~3.47* | 3.20 |
FY2025 D/E ratio is approximate; exact figure not stated in DRHP.
Risk Factors
Investors should note the following material risks disclosed in the DRHP:
- Geographic Concentration: 100% of revenue is derived from a single hospital in Ferozepur, Punjab.
- Limited Operating History: The company was incorporated in 2021 and acquired the business in 2022, limiting its track record as a corporate entity.
- High Debt Levels: The Debt-to-Equity ratio stood at 3.20 in FY2026, with secured debt of ₹4,575.26 lakhs.
- Supplier Dependency: Top 2 suppliers accounted for 73.49% of total purchases in FY2026.
- Regulatory Risks: The healthcare sector is highly regulated, requiring numerous licenses and accreditations.
Valuation & Peer Comparison
Specific peer comparison data and listed comparable companies were not provided in the DRHP data. However, the company’s post-issue equity is estimated at approximately ₹39.34 Crore after the ₹22.00 Crore fresh issue. The valuation will depend on the final price band disclosure.
Bottom Line
ABH Healthcare presents a case of strong profitability growth and improving debt metrics, supported by a legacy brand in a Tier 3 city. However, investors must weigh these positives against the critical risk of single-location revenue concentration and high supplier dependency. The IPO offers exposure to the growing Tier 3 healthcare market but carries inherent operational risks.
How might the repayment of ₹17.00 Crore in borrowings impact ABH Healthcare's future capital allocation strategy for expansion beyond its single Ferozepur location?
Given the 73.49% dependency on top suppliers, what contingency plans does management have to mitigate supply chain disruptions or price volatility in medical consumables?
Will the proceeds from this SME IPO be utilized to diversify revenue streams by acquiring or building facilities in other Tier 3 cities to reduce geographic concentration risk?
18
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
