Hannah Joseph Hospital IPO Makes Weak Debut with 7.14% Discount, Lists at ₹65 Against Poor 1.54x Subscription

Hannah Joseph Hospital Ltd, a Madurai-based multi-specialty healthcare provider incorporated in 2011 with central air-conditioning and water heating system offering combined capacity of 150 beds focusing on Neurology, Cardiology, Psychiatry, and Trauma healthcare with departments including Neurosciences comprising Neurology and Neurosurgery, Cardio Sciences comprising Cardiology, Trauma Care comprising Orthopaedics and Oral & Maxillofacial Surgery, and Psychiatry department understanding global nuances, customer culture, and medical professionals' needs addressing demand for quality and affordable healthcare services, made a weak debut on BSE SME on Monday, February 2, 2026. After closing its IPO bidding between January 22-28, 2026, the company commenced trading with a discount of 7.14% opening at ₹65.00, hit lower circuit at ₹61.75 (down 11.79%) before recovering sharply to hit upper circuit at ₹68.25 (down 2.50% from issue price).

Hannah Joseph Hospital Listing Details

Hannah Joseph Hospital launched its IPO at ₹70 per share with minimum investment of 4,000 shares costing ₹2,80,000. The IPO received tepid response with subscription of only 1.54 times - individual investors at 1.62 times, NII at 1.98 times (bNII at 2.33 times, sNII at 1.29 times), QIB barely subscribed at 1.08 times, total applications of merely 905.

First-Day Trading Performance

Listing Price: Hannah Joseph Hospital opened at ₹65.00 representing discount of 7.14% from issue price of ₹70.00, initially hit lower circuit at ₹61.75 (down 11.79%) before witnessing sharp recovery to hit upper circuit at ₹68.25 (down 2.50%), with VWAP at ₹66.80, reflecting volatile trading session with initial selling pressure followed by strong buying interest as investors recognized value at lower levels with turnover of ₹11.89 crore, traded volume of 17.80 lakh shares, and market capitalisation of ₹154.92 crore against pre-IPO market cap of ₹158.89 crore.

Growth Drivers and Challenges

Growth Drivers:

Specialized Healthcare Focus: Excellence in Neurosciences, advanced Cardiac Sciences, expertise in Orthopaedics and Traumatology with robust emergency and critical care capabilities serving Madurai region with 150-bed multi-specialty hospital on 2-acre campus.

Consistent Financial Growth: Revenue growing from ₹54.90 crore in FY23 to ₹77.90 crore in FY25, PAT growing from ₹1.01 crore to ₹7.21 crore in same period, healthy PAT margin of 12.03%, strong EBITDA margin of 27.38%.

Expansion Plans: Planning Radiation Oncology Centre with ₹34.98 crore IPO proceeds expanding service offerings into cancer treatment addressing significant unmet healthcare need in region.

Challenges:

Listing Discount: Opening decline of 7.14% with initial lower circuit hit at 11.79% down creating anxiety for IPO investors before recovery, reflecting market concerns over fully priced issue.

Regional Concentration: Single hospital in Madurai limiting scale and geographical diversification, significant promoter dilution from 93.57% to 68.83% post-IPO.

Leverage Position: Total borrowings of ₹31.64 crore against net worth of ₹53.22 crore with debt-to-equity of 0.55, small post-IPO equity capital indicating longer gestation for mainboard migration

Utilisation of IPO Proceeds

Radiation Oncology Centre: ₹34.98 crore for funding capital expenditure for establishing Radiation Oncology Centre representing major expansion into cancer treatment services.

General Corporate Purpose: ₹0.32 crore for general corporate purposes.

Financial Performance

Revenue: ₹42.75 crore for H1 FY26, ₹77.90 crore for FY25, growth from ₹63.63 crore in FY24 and ₹54.90 crore in FY23.

Net Profit: ₹5.12 crore in H1 FY26, ₹7.21 crore in FY25, significant growth from ₹4.07 crore in FY24 and ₹1.01 crore in FY23, demonstrating strong profitability improvement with post-IPO EPS of ₹4.51 and P/E of 15.52x.