MAITREYA MEDICARE LIMITED | INITIAL PUBLIC OFFERNING

Maitreya Medicare Limited (MML) originally began its corporate journey as 'Maitreya Medicare Private Limited,' operating as a privately held entity in accordance with the Companies Act of 2013, located in Surat, Gujarat. In the year 2019, MML established itself as a prominent 125-bed Multi Super speciality hospital in the same region.

On 19^th October, 2023 Maitreya Medicare Limited officially issued its Prospectus mentioning the important details regarding its recent Initial Public Offering (hereinafter referred as IPO) which will start from Friday, 27 October, 2023 and closes on Wednesday, 01 November, 2023. Before delving deeply into the details of the IPO. Let us briefly look at the Business Operation of ‘Maitreya Medicare Limited.’

ABOUT BUSINESS OPERATION

Maitreya Medicare Limited (MML) originally began its corporate journey as 'Maitreya Medicare Private Limited,' operating as a privately held entity in accordance with the Companies Act of 2013, located in Surat, Gujarat. In the year 2019, MML established itself as a prominent 125-bed Multi Super speciality hospital in the same region. Subsequently, our company underwent a significant transformation, transitioning from a private entity to a public company. This pivotal change was initiated following the approval of a special resolution by their shareholders on March 6, 2023. Consequently, the Registrar of Companies (RoC) issued a fresh certificate of incorporation, officially recognizing the change in the company's name on March 30, 2023. Maitreya Medicare Limited specializes in providing a wide range of comprehensive healthcare services, emphasizing primary, secondary, and tertiary care, all seamlessly integrated to deliver high-quality medical solutions to our valued patients and clients. Maitreya Medicare Limited extends its influence through several subsidiary companies, further expanding its presence and diversifying its offerings. These subsidiaries include: Maitreya Hospital Private Limited (MHPL) and Maitreya Life science Private Limited (MLPL). These subsidiary entities operate in tandem with Maitreya Medicare Limited, collectively contributing to the company's broader mission of providing comprehensive healthcare services and solutions.

PRODUCTS AND SERVICES

Maitreya Medicare Limited takes offers an extensive array of healthcare services, seamlessly integrated to meet the diverse needs of patients. They are committed to delivering exceptional care spans across various medical disciplines, focusing on primary, secondary, and tertiary levels of healthcare. They provide a comprehensive range of healthcare solutions, covering over 18 specialties and super specialties. These include: Cardiology, Urology, Oncology, Laparoscopic Surgery, Neurology, Neurosurgery, Spine Surgery, Nephrology (including Dialysis), Gastroenterology, Gastrointestinal Surgery, Cardiothoracic Surgery, Oncosurgery, Orthopaedic Surgery (including joint replacements and Arthroscopic surgeries), Gynaecology & High-Risk Obstetrics, Hepatocellular Biliary Surgery, Critical Care Medicine. Maitreya Medicare Limited has a dedicated teams of professionals in each specialty to ensure that patients receive the highest standard of care and access to cutting-edge medical treatments, ultimately improving the health and well-being of the communities.

BOARD OF DIRECTOR AND PROMOTERS OF THE COMPANY

The Board of Directors at Maitreya Medicare Limited is composed of a team of dedicated professionals who play key roles in guiding the company's strategic direction and ensuring its success. The members of the Board include: Narendra Singh Tanwar, who serves as the Managing Director and CFO of the company, bringing a wealth of leadership and financial expertise to the organization. Pranav Rohitbhai Thaker, who serves as a Wholetime Director, contributing to the company's overall vision and operations. Vimalkumar Natverlal Patel, also a Wholetime Director, plays an integral role in the company's leadership team, contributing to its management and growth. Hardik Patel, an Independent Director, provides valuable insights and objective perspectives to the company's decision-making processes. Abha Surana, another Independent Director, offers independent guidance and expertise to help ensure transparency and good governance within the organization.

The promoters of Maitreya Medicare Limited are a group of distinguished individuals who have been instrumental in the company's establishment and growth. The key promoters and members of the promoter group are: Dr. Narendra Singh Tanwar Mr. Vimalkumar Natverlal Patel Dr. Pranav Rohitbhai Thaker. Additionally, the promoter group also includes: Mr. Purvesh Harshadbhai Mali, Mr. Jayesh S. Patel, Mr. Parimal Arvindbhai Desai, and Mr. Girish Pokharana. These individuals have played a pivotal role in shaping the company's vision and direction, contributing to its success and ongoing development in the healthcare sector.

INDUSTRY OUTLOOK

India's economy is growing very fast, and it is expected to become one of the world's top three economies in the next 10-15 years. This growth is happening because we have a strong democracy and good partnerships with other countries. The healthcare industry in India is also growing rapidly. It is now one of the biggest industries in the country, making a lot of money and providing many jobs. In healthcare, India does a lot of different things like running hospitals, making medical devices, doing medical research, and even treating patients who come from other countries. The healthcare industry in India is getting better with more people using its services and more money being invested by the government and private companies.

Healthcare in India is divided into two main parts: one is run by the government, and the other is private. The government mainly takes care of basic healthcare services in cities and rural areas. The private sector, which includes private hospitals and clinics, does more specialized and advanced healthcare in big cities.

One of the good things about India is that we have a lot of well-trained doctors and nurses. Also, getting medical treatment in India is much cheaper than in the United States or Europe. This is why many people from other countries come to India for medical treatment, which is called medical tourism. India is also becoming a hotspot for medical research because it costs less here. Our healthcare industry has many opportunities for different businesses, including hospitals, insurance companies, and medical technology companies. They are all trying to see what new trends and changes they can use to make their businesses better.

In the future, India's hospital industry is expected to get even bigger and be worth a lot more money. It could grow by 16-17% every year, which is a lot. India is also a good place for companies that make medical devices. We have high-quality diagnostic services that can help lots of people. People in India are also more aware of their health, and they are willing to spend more on healthcare. The government wants to make India a top spot for healthcare, and they are planning to spend more money on public health, which means healthcare for everyone. They want to use 2.5% of the country's money for healthcare by 2025.

Overall, the healthcare industry in India is booming, and it is a good place for all kinds of healthcare businesses to grow and help people live healthier lives.

COMPETITION

In the place where the company works, there are other hospitals and medical centres that offer similar services. These places are our competitors. They provide different kinds of healthcare services, some of the big competitors in South Gujarat include Unique Hospital, Sunshine Global Hospital, Mahavir Hospital, Shalby Hospital, United Green Hospital, and SIMS Hospital. They also must compete with hospitals run by the government, smaller clinics, and nursing homes. Some hospitals are run by non-profit organizations or charities, and there are also hospitals connected to medical colleges. In the future, new healthcare places might open in area, and will have to compete with them too.

Having lots of competition can make things challenging. It might mean they have to lower prices, and some people might not need their services as much. This can affect how much money company makes, and might miss out on new opportunities or lose some of our customers. So, they must work hard to stay competitive and keep our place in the healthcare market.

FINANCIAL ASPECT

When considering an investment in a company, investors invariably scrutinize the Key Financial Indicators to make informed decisions. Among these, Revenue from Operations stands out as a pivotal figure. Notably, in the Financial Year 2022-23, Maitreya Medicare has generated a remarkable revenue of INR 127491.54 (in thousands). And in the FY 2021-22 it had a revenue of 157600.25 (in thousands). Their profit for the FY 2022-23 stands at 58841(in thousands. If we delve deeply into the finances of the Maitreya Medicare, For the half-year ending on September 30, 2023, the company earned most of its money from its regular operations, which made up almost 100% of its total income. Total income for that period was about ₹248,450.50 thousand.

Now, when you run a company, you spend money on different things. For Maitreya Medicare Limited, the main expenses included buying stuff to sell (like medical supplies), paying employees, covering finance costs, taking care of equipment (called depreciation), and handling various other expenses. In that same half-year of 2023, the company's expenses for raw materials (the stuff they needed to run the hospital) added up to ₹23,113.72 thousand. After considering all these costs, the company had a profit of ₹25,405.00 thousand.

Looking back at the entire year 2023, the company made a total income of ₹3,99,490.74 thousand. That is a bit less than the previous year, which saw ₹4,97,440.68 thousand in total income, marking a decrease of about 19.69%. This drop happened because in the previous years, there was a high demand for healthcare services due to COVID-19, which boosted the revenues. If we remove this special COVID impact and look at the regular business, the company's performance matched its expectations and industry standards. The revenues for those years were pretty much the same when we do not consider the COVID impact. So, in 2023, the company saw the financial growth it expected, and it's in a good position, despite the unique circumstances of the previous years.

For a comprehensive understanding of the financial aspects of Maitreya Medicare Limited, the following table provides valuable insights of financial ratios for a comprehensive assessment of the company's financial condition and performance.

OBJECTIVE OF THE IPO

The upcoming Initial Public Offering (IPO) for Maitreya Medicare Limited is driven by several strategic objectives:

1.          Expansion in South Gujarat: The company aims to strategically expand its presence in South Gujarat, taking advantage of long-term growth factors in the healthcare industry. The renewed emphasis on healthcare, particularly through initiatives like the Pradhan Mantri Jan Arogya Yojana (PMJAY), is creating a conducive environment for the healthcare delivery market in India to flourish. Maitreya Medicare Limited seeks to leverage this growth by focusing on underserved and densely populated micro-markets in Western India, adjacent to its core markets.

2.          Establishing Advanced Tertiary Care Facilities: The company is in the process of establishing a 125-bed multi-specialty hospital in Valsad, Gujarat, equipped with advanced tertiary care services. This facility will have full-time super-specialist doctors specializing in fields like Cardiology, Neurology, and Nephro-Urology.

3.          Recruitment and Retention of Healthcare Professionals: Attracting and retaining skilled healthcare professionals is vital for the success of the company's healthcare service strategy. Building relationships with surgeons and physicians known for their expertise is crucial for branding, growth, and expansion. The company aims to leverage its brand, clinical proficiency, and operational excellence to continue to attract healthcare professionals and establish enduring partnerships.

4.          Improving Quality of Care and Embracing Technology: Maitreya Medicare Limited is committed to enhancing the quality of patient care by investing in and employing the latest medical technologies and equipment. The incorporation of advanced technologies into its operations is expected to enhance patient care, expand the range of treatments offered, and improve cost-effectiveness, efficiency, and cost savings. The company also intends to optimize its operations by further integrating technology, streamlining processes, and providing training to healthcare professionals.

5.          Meeting Public Offer Expenses: A portion of the proceeds will be allocated to cover the expenses associated with the public offering, including legal, regulatory, and administrative costs, underwriting and management fees, printing and distribution expenses, advertisement expenses, legal fees, and listing fees.

IMPORTANT DATES

DETAILS OF THE IPO

Maitreya Medicare Limited is offering Equity shares to the public through an Initial Public Offering (IPO). Here is a breakdown of the key details:

Total Equity Shares: The company is offering up to 18,16,000 Equity Shares. Each of these shares has a face value of ₹10 and is fully paid up.

IPO Price Range: The shares are priced in the range of ₹78 to ₹82 per share. At the upper end of this price range (₹82 per share), the IPO is expected to raise a total of ₹14.89 crore in fresh funds.

Market Maker Reserve: A portion of the Equity Shares (1,08,800) is reserved for Market Makers, who play a key role in facilitating trading.

Net Issue to the Public: After considering the shares reserved for Market Makers, the remaining Equity Shares available for the public is up to 17,07,200.

Allocation for Different Categories:

·       Qualified Institutional Buyers (QIBs): Not more than 8,24,000 Equity Shares are available for allocation to QIBs.

·       Non-Institutional Investors: Not less than 2,72,000 Equity Shares are designated for Non-Institutional Investors.

·       Retail Individual Investors: At least 6,11,200 Equity Shares are set aside for Retail Individual Investors.

Minimum Bid Size for Retail Investors: Retail Individual Investors can bid for a minimum of 1600 Equity Shares, and their bids must be in multiples of 1600 Equity Shares. The maximum bid amount for Retail Investors should not exceed ₹2,00,000.

Trading Lot: The trading lot size is 1600 Equity Shares for Market Makers, QIBs, and Non-Institutional Investors. Bids should be in multiples of 1600 Equity Shares.

This information provides an overview of the details related to Maitreya Medicare Limited's IPO, including the number of shares offered, the price range, and the allocation to different categories of investors, making it easier for potential investors to understand the IPO process.

RISKS INVOLVED

Maitreya Medicare Limited faces several internal risks that could potentially impact its business operations and financial health. These risks include:

1.       Dependence on Healthcare Professionals: The company relies heavily on its doctors, nurses, and other healthcare professionals to deliver quality services. The loss of these key personnel or difficulties in attracting and retaining them could adversely affect the business and operational results. In the highly competitive market for healthcare talent, it may be challenging to match compensation, reputation, facilities, and other factors offered by competitors.

2.       Legal Proceedings: Maitreya Medicare Limited is involved in legal proceedings at various levels of adjudication. These proceedings can divert management's time, attention, and financial resources for their defense. Adverse judgments in these proceedings could negatively impact the company's business, financial condition, and results of operations.

3.       Consultant and Part-Time Medical Staff: The company engages some medical staff on a consultancy basis, and some may also work at other hospitals or engage in private practice. The need to revise compensation packages or difficulties in retaining these professionals due to adverse financial conditions could affect the availability of their services. This may result in underutilizing their expertise and create conflicts of interest, potentially impacting service quality and patient intake.

4.       Regulatory Changes: Revenue generation from government-sponsored health schemes is a significant aspect of the company's business. Adverse changes in regulations or government policies related to these schemes could negatively impact business operations and prospects.

5.       Approvals and Licenses: The company has yet to apply for approvals and licenses for its proposed Valsad hospital. Delays or difficulties in obtaining these approvals could affect the company's revenues, credibility, and future plans.

6.       Liabilities from Healthcare Services: The provision of healthcare services exposes the company to legal claims and regulatory actions, including claims of malpractice and medical negligence. Such liabilities could harm the company's reputation and prospects.

7.       Geographical Concentration: The company's operations are concentrated in one area. Localized social unrest or natural disasters could significantly impact business and financial operations.

8.       Specialty-Dependent Revenue: A substantial portion of the company's revenue is dependent on specific medical specialties such as cardiology, neurology, orthopaedics, and general medicine. Any significant impact on earnings from these areas could materially affect financial condition and operational results.

9.       Supplier Dependency: Maitreya Medicare Limited depends on a limited number of external suppliers for medicine and consumables. Delays or failures in the supply chain could negatively affect business profitability and reputation.

10.    Competition: The company faces intense competition from other healthcare service providers. Inability to effectively compete could materially affect the business, operational results, and cash flows.

11.    Recall of Unsecured Loans: The company has taken unsecured loans from its Promoters and Directors, which can be recalled at any time. Any such recall could create financial strain.

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