ABH Healthcare

ABH Healthcare is a specialized healthcare provider operating under the brand name Anil Baghi Hospital. The organization has evolved into a multi-speciality hub, offering comprehensive medical care across 25 distinct specialties, including critical areas such as cardiac sciences, neurology, minimally invasive spine and brain surgeries, and medical and surgical gastroenterology. Other key offerings include laparoscopic and bariatric surgery, urology, pulmonology, nephrology, and ENT services.

The business model is diversified through partnerships with various government healthcare schemes and organizations. The hospital serves a significant patient base via the ECHS, Indian Railways, FCI, BSNL, and the Ayushman Bharat–Sarbat Sehat Bima Yojana (ABSSBY), ensuring a steady flow of patients and integration with public health infrastructure.

Operationally, the company maintains a professional scale with a team of 29 doctors and 137 nurses as of FY25. This medical staff supports the delivery of quality clinical care using modern equipment, positioning the hospital as a key healthcare destination in its operating region.

The company's operational base is centered in Ferozepur, Punjab, where it has established a track record of stable financial growth. The management focuses on providing high-quality clinical care and maintaining a professional management team to drive regional expansion.

Promoter leadership is provided by Kamal Baghi, Saurabh Baghi, and Vaishali Saini, who have steered the hospital's growth from a local service provider to a comprehensive multi-speciality facility with a diverse range of medical capabilities.

ABH Healthcare is launching a Book Built Issue to raise approximately ₹34.98 Crores. The entire issue consists of a fresh issue of ₹34.98 Crores with no Offer for Sale (OFS) component, indicating that the promoters are not offloading shares at this stage. The price band is set between ₹96 and ₹102 per share, with a minimum retail lot size of 2,400 shares requiring an application amount of ₹2,44,800. The IPO is scheduled to open on August 24, 2026, and close on August 27, 2026, with listing on the NSE SME platform on September 1, 2026.

The proceeds from the fresh issue are earmarked for critical balance sheet improvements and growth. Specifically, ₹17.00 Crores will be utilized for the repayment or prepayment of certain borrowings, and ₹4.30 Crores will be directed toward funding working capital requirements. The remaining funds are allocated for inorganic growth through unidentified acquisitions and general corporate purposes.

Financial performance shows a positive trajectory in both top and bottom lines. Revenue increased from ₹41.39 Crores in FY24 to ₹49.32 Crores in FY25, reaching ₹52.59 Crores in FY26. Similarly, PAT grew from ₹1.66 Crores in FY24 to ₹5.35 Crores in FY25, and marginally increased to ₹5.64 Crores in FY26.

From a valuation perspective, the company reports a strong ROE of 39.07% and a PAT margin of 10.74%. The basic EPS for FY26 stands at ₹7.05. While the P/E ratio is not explicitly provided, a comparison with peers like Sangani Hospitals (P/E 24.52) and Asarfi Hospital (P/E 27.63) suggests the market sentiment for the sector, though ABH's high debt remains a distinguishing factor.

Key investment strengths include a strong ROE, a diversified patient base through government schemes, and a 100% fresh issue structure. However, the primary risk is the high Debt-to-Equity ratio of 3.2, which indicates significant leverage on the balance sheet.

Overall, the IPO presents a balanced case: the company is growing and improving its profitability, but the high debt levels necessitate a cautious approach. Investors may view this as a long-term play on regional healthcare infrastructure rather than a short-term listing pop candidate.