ABH Healthcare coming with IPO to raise up to Rs 34.98 crore

ABH Healthcare 

• ABH Healthcare is coming out with an initial public offering (IPO) of 34,29,600 shares in a price band of Rs 96 - 102 per equity share.
• The issue will open for subscription on August 24, 2026 and will close on August 27, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 9.60 times of its face value on the lower side and 10.20 times on the higher side.
• Book running lead manager to the issue is Fedex Securities.
• Compliance officer for the issue is Rahul Sharma.

Profile of the company

ABH Healthcare’s core focus is on providing specialised tertiary medical care in Tier 3 cities, within the state of Punjab while seeking to strike a balance between providing quality healthcare services and affordability. Located in Ferozepur, Punjab, its hospital has a capacity of 150 beds. Acquired by the company in 2022, the hospital was established in 1985 with 30 beds and is driven by a vision to provide affordable, accessible, and quality healthcare services, delivered with compassion. Since its acquisition, it has consistently invested in the hospital, expanding bed capacity, increasing its workforce, and introducing additional services and clinical specialties. It has 150 beds and offer 25 medical specialties in its hospital such as, cardiac sciences, neurology, minimally invasive spine and brain surgeries, gastroenterology, laparoscopic and bariatric surgery, urology, pulmonology, nephrology, ENT, maxillofacial surgeries, obstetrics and gynaecology, adult and neonatal critical care, orthopedics and joint replacement, neuro-psychiatry and drug de-addiction, general & laparoscopic surgery, dentistry, physiotherapy, dermatology and lab investigations and radiology. Its extensive 35+ years of experience in the healthcare industry in the region where it operates has helped it develop a strong understanding of the region’s market dynamics.

It has an extensive network of empanelment which includes, over 30 private and public health insurance companies and third-party administrators. In addition to private health insurance, it is also empaneled with all major government insurance schemes available in this region, including Ex-Servicemen Contributory Health Scheme (ECHS), Railways, Food Corporation of India (FCI), Bharat Sanchar Nigam (BSNL), and Ayushman Bharat - Sarbat Sehat Bima Yojana (AB SSBY). Its hospital has also received various accreditations including, the accreditations from the National Accreditation Board for Hospitals and Healthcare Providers (NABH) in 2021. Further, in the Fiscal 2025 it has also been accredited with NABH Digital Standards, highlighting its adoption of cutting-edge digital technologies in healthcare.

It has adopted comprehensive information technology ecosystem aimed at transforming both the patient and clinical experience, as well as boosting the business and operational efficiency. Central to its strategy is the adoption of cutting-edge technologies, including digitalizing its patient experience through its patient portal, website and widely-used messaging platforms. It has also implemented a state-of-the-art Computerized Physician Order Entry (CPOE) system and Electronic Health Record (EHR) platform, licensed from a third-party service provider. It has installed an inhouse Dell PowerEdge R660xs T40 Server for storage of data along with other data safety measures. Further, it has employed a professional to look after any kind of issues related to IT system.

Proceed is being used for:

• Repayment / prepayment, in part or full, of certain of its borrowings
• Funding its working capital requirements
• Funding inorganic growth through unidentified acquisitions and general corporate purposes

Industry overview

Healthcare has become one of India’s largest sectors, both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services, and increasing expenditure by public as well as private players. India’s healthcare delivery system is categorised into two major components - public and private. The government, i.e., the public healthcare system, comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of Primary Healthcare Centers (PHCs) in rural areas. The private sector provides the majority of secondary, tertiary, and quaternary care institutions with a major concentration in metros, tier-I, and tier-II cities. 

The Indian healthcare sector was valued at Rs 9,42,590 crore ($110 billion) in 2016 and Rs 31,87,668 crore ($372 billion) in 2023. Healthcare spending accounted for 3.3% of India’s GDP in 2022 and is expected to rise to 5% by 2030, reflecting the sector’s increasing role in the economy. India continues to expand its healthcare infrastructure. As of February 2026, the country has 13,88,185 registered allopathic doctors and 7,51,768 AYUSH practitioners, supported by a growing workforce of 39.40 lakh nursing personnel. 

To strengthen capacity, there are 5,310 nursing institutions (including 806 government institutes) producing nearly 3.82 lakh nurses annually. Medical education capacity is also expanding, with 43 new medical colleges established in 2025-26, taking the total to around 818 medical colleges across India. The Government has also approved 11,682 MBBS seats and 8,967 postgraduate seats, with over 1,28,000 MBBS seats available annually, further strengthening the talent pipeline. Investment activity in the sector remains strong, with the hospital segment accounting for nearly 80% of the overall healthcare market, highlighting its important role in industry growth.

Pros and strengths

Delivering quality clinical care by attracting, retaining experienced and renowned clinicians: The cornerstone of delivering quality healthcare services lies in the quality of its clinicians and hence it has prioritized attracting and retaining renowned clinicians and other professionals who bring expertise and dedication to patient care. Not only its Promoter Directors namely, Dr. Saurabh Baghi and Dr. Vaishali Saini but, its team of key doctors have been experienced with institutes in India and overseas. Further, its senior doctors, such as Dr. Harsh Bholla (General Surgery) have been associated with it for over a decade while others like Dr. R.L. Taneja (General Surgery), Dr. Richa Arora (Obstetrics and Gynaecology) and Dr. Tajinder Bhalla (Orthopedics) have been associated with it for about 5 years. Most of its doctors are full-time consultants and are committed to its hospital for the long term. Further, it promotes its doctors by actively engaging in research and publishing several case reports in international journals. Its team of experienced clinicians and other professionals also enabled it to create and adhere to standardized clinical processes across its hospital. A large amount of autonomy is given to departmental head to drive their clinical practice providing greater flexibility in operations and freedom in decision making. These practices help it to retain well qualified doctors with its hospital and become a trusted name amongst its patient population.

Diversified operations across clinical specialties, payor mix and hospitals: It offers medical services across multiple specialties, covering a wide range of healthcare needs ensuring that it provides comprehensive, quality treatments across a wide spectrum of healthcare needs. Its facility serves as a one-stop solution, addressing both routine and complex medical conditions, and delivering personalized care that meets the unique needs of each patient. Whether it's preventive care, diagnostic services, or advanced treatments, it strives to be a trusted healthcare partner for all aspects of its patients' well-being. 

Comprehensive operating infrastructure including information technology and modern equipments: It has developed a comprehensive information technology infrastructure to support the delivery of its services to a broader population in need of healthcare. Combining advanced technology with an extensive service network has allowed it to address its patients' medical needs more effectively. Its technology initiatives are focused on improving patient experience, clinical workflows, and financial and operational efficiencies through process automation. It has established an information technology infrastructure to enhance the quality, affordability and accessibility of its services and reach more people in need of healthcare. The use of technology has enabled it to address the medical needs of its patients effectively. Its ongoing investment in new technologies, along with the upgrade and replacement of existing infrastructure, has led it to tailor its technology platforms to meet its specific requirements.

Risks and concerns

Revenue dependence on Punjab hospital:  It derives almost all of its revenue from operations from its only hospital in Ferozepur, Punjab. For instance, for the Fiscal 2026, and Fiscal 2025 and, its total revenue was Rs 5,104.37 lakh of which 100% and Rs 4,891.62 lakh of which 100% respectively were derived solely from the operations of its hospital in Ferozepur, Punjab. Any material impact on its revenues from its hospital in Ferozepur, Punjab, including by reason of a reduction in patient footfall, regulatory changes, reputational harm, liabilities on account of medical negligence, adverse publicity or natural calamities and increased competition, could have a material adverse effect on its business, financial condition and results of operations.

Hospital occupancy and capacity utilization risk: Its ability to sustain current levels of profitability and operating efficiencies depends on its ability to maintain and increase bed occupancy rates. It intends to focus on improving occupancy rates at its hospital. Improving occupancy rates at its hospital is highly dependent on factors such as brand recognition, wider acceptance in the communities in which it operates, its ability to attract and retain quality healthcare professionals, its ability to develop super-specialty practices and its ability to compete effectively with other hospitals and clinics. For instance, bed occupancy rate reduced from 70% in Fiscal 2022 to 65% in Fiscal 2023, while its total bed capacity increased from 75 beds to 85 beds during the corresponding period. Similarly, its bed occupancy rate reduced from 65% in Fiscal 2023 to 63% in Fiscal 2024, while its total bed capacity increased from 85 beds to 100 beds during the corresponding period. If it fails to improve its occupancy rates, but continue to incur significant expenditure in the future, this could materially adversely affect its operating efficiencies and its profitability.

Reliance on limited suppliers and subcontractors: It sources a majority of its medical supplies, drugs, pharmaceuticals and medical equipment for its operations from limited number of third-party suppliers. It also outsources various activities, such as cleaning and maintenance services, laboratory services, house-keeping and as well as security services, by entering into an arrangement/contract with original equipment manufacturers (OEM) and third-party suppliers. The use of third-party suppliers, OEMs and sub-contractors exposes it to supply chain bottlenecks, quality problems, reputational damage from their actions, and other potential liabilities or disruptions that may arise in cases where such third-party suppliers and sub-contractors fail to meet their commitments. It also relies on a limited number of equipment suppliers to carry out repairs and maintenance of its equipment. Any failure or negligence by such third parties in performing their obligations could adversely affect its business, financial condition, results of operations, reputation and brand. Further, any failure to procure equipment or supplies on a timely basis, or at all, from such third parties and on commercially suitable terms could affect its ability to provide its services. 

Outlook

ABH Healthcare is engaged in the business of establishing, maintaining, assisting healthcare services in India, in the form of Super Speciality Hospitals and allied services such as Laboratories & Diagnostic Centres, Blood Bank and other related services. It offers medical services across multiple specialties, covering a wide range of healthcare needs ensuring that it provides comprehensive, quality treatments across a wide spectrum of healthcare needs. On the concern side, if it is unable to keep pace with technological changes, new equipments and service introductions, changes in patients’ needs and evolving industry standards as well as failure or malfunction of its medical or other equipments, its business and financial condition may be adversely affected.

The company is coming out with a maiden IPO of 34,29,600 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 96-102 per equity share. The aggregate size of the offer is around Rs 32.92 crore to Rs 34.98 crore based on lower and upper price band respectively. On performance front, revenue from operations increased by 6.58% from Rs 4,926.71 lakh in Fiscal 2025 to Rs 5,250.69 lakh in Fiscal 2026. Profit for the year increased by 5.47% from Rs 534.70 lakh in Fiscal 2025 to Rs 563.94 lakh in Fiscal 2026.

Meanwhile, it will focus on attracting qualified and experienced clinicians to ensure that the healthcare services provided to its patients are of quality. By establishing quality hospital in the region where it operates, it has successfully created an environment that attracts professionals who are renowned in their fields with experience in medical institutes globally. Going forward, to improve accessibility to critical, time-sensitive medical treatment, it plans to establish multiple urgent care centers in key locations across its surrounding towns. Without significant capital investment, these centers will provide immediate intervention for life-threatening conditions such as acute stroke, respiratory distress, and cardiac arrest. By offering rapid diagnosis and stabilization, they will serve as essential points of care, bridging the gap between primary care and emergency services.