Shalby Ltd

shalby hospital

About the Company:

Shalby Hospitals is one of the leading multi-specialty chain of hospitals in India.Company’s hospitals are tertiary care hospitals, few of which also offer quaternary healthcare services to patients in various areas of specialisation such as orthopaedics, complex joint replacements, cardiology, neurology, oncology, and renal transplantations.

Headquartered in Ahmedabad, India,they have a domestic and overseas outreach through a network of hospitals in India, and Outpatient Clinics and SACE located in India, Africa, and the Middle East.

Led by Dr Vikram Shah, an orthopaedic surgeon with more than 25 years of professional experience, they have grown from a single hospital to a chain of multi-specialty hospitals.

Shalby Limited has evolved as one of the largest private corporate healthcare groups in Gujarat with a network of 6 hospitals with a capacity of 1,104 beds in 2017, well spread across Gujarat.

Having strong presence in western and central India and focus on Tier – I and Tier – II cities, they operate hospitals across five states, Operate Outpatient Clinics across 37 cities in 12 states in India, and their (Shalby Arthroplasty Centre of Excellence) SACE are present in seven cities in six states in India.

Company’s international footprint consists five Outpatient Clinics and one (Shalby Arthroplasty Centre of Excellence) SACE in Africa, and two SACE in the UAE.

Company is currently in the process of setting up hospitals for a total bed capacity of 263 beds in Nashik and Vadodara.

In March 2017, they set up three new hospitals, Shalby Jaipur, Shalby Naroda, and Shalby Surat, which had an aggregate bed capacity of 747 beds, which have commenced providing inpatient services from April, 2017, July, 2017 and August, 2017, respectively.

They provide inpatient and outpatient healthcare services through 11 operational hospitals with an aggregate bed capacity of 2,012 beds.

As on June 30, 2017, they had nine operational hospitals with an aggregate operational bed count of 841 beds.

Company had a 15% market share of all joint replacement surgeries conducted by private corporate hospitals in India in 2016.

Shalby Hospitals also provide outpatient services through 47 Outpatient Clinics and have ten shared surgery centres within third party hospitals, which we call “Shalby Arthroplasty Centre of Excellence” (“SACE”), where we offer orthopaedic healthcare services including surgeries.

Since March 2007, they have conducted an aggregate of 92,100 surgeries, and provided healthcare services to an aggregate of 1,025,533 patients, consisting 133,652 inpatients and 891,881 outpatients.


Hospitals Currently being Operated by the Company:

Hospital Name Location Date of commencement
Vijay Shalby Ahmedabad March, 1994
SG Shalby Ahmedabad March, 2007
Shalby Vapi Vapi April, 2012
Krishna Shalby Ahmedabad October, 2012
Shalby Jabalpur Jabalpur March, 2015
Shalby Indore Indore August, 2015
Shalby Mohali Mohali August, 2015
Zynova Shalby Mumbai January, 2017
Shalby Jaipur Jaipur March, 2017
Shalby Naroda Ahmedabad March, 2017
Shalby Surat Surat March, 2017


Upcoming/Expansion Hospitals of the Company:

Location Estimated time for commencement of operations /Expansion Type of hospital Number of capacity beds to be added
Nashik Fiscal 2019 Multi-specialty 113
Vadodara Fiscal 2019 Multi-specialty 150
Mumbai(Zynova Shalby) Fiscal 2019 (Expansion Project) Multi-specialty 100


Management Team:

  1. Dr Vikram Shah (Designation: Chairman and Managing Director)
  2. Dr Darshini Shah (Designation: Non-Executive, Non-Independent Director)
  3. Mr.Shyamal Joshi (Designation: Non-Executive, Non-Independent Director)


Objectives of the Issue:

  • Repayment or prepayment in full, or in part of certain loans availed by the Company.
  • Purchase of medical equipment for existing, recently set up and upcoming hospitals.
  • Purchase of interiors, furniture, and allied infrastructure for upcoming hospitals.
  • General corporate purposes.


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Fund Utilization:

Particulars Amount (Rs. in Crores)
Repayment of certain loans availed by the Company 300.00
Purchase of medical equipment for existing, recently set up and upcoming hospitals 63.58
Purchase of interiors, furniture, and allied infrastructure for upcoming hospitals 11.18
General Corporate Expenses 105.24
Net Proceeds 480 cr


Competition Analysis (Gujarat State)

In Gujarat, the private healthcare sector majorly includes a mix of players with pan India presence like Apollo Hospitals and players with regional presence like Care Institute of Medical Science (CIMS) (1 unit), Shalby Limited (6 units), Sterling Hospitals (4 units) and Zydus Hospitals (2 units).

However, most of these players have restricted their presence to the region except Shalby Limited, expanding its network in the central, western and northern India and operating a network of 11 multispecialty hospitals, 62 patient outreach centres and 5 SACE clinics across India.

In fact, besides Shalby Limited, most other private players in Gujarat have restricted themselves to Ahmedabad only, while a few players like Sterling hospital and Zydus hospital have a presence across other cities of Gujarat.

Knee/Hip Replacement Category Analysis:

The key private corporate hospitals with a major presence in orthopedics are Apollo Hospitals, Shalby Hospitals, Max Hospitals, Fortis Hospitals, Max Hospitals, Sunshine Hospitals, and others.

In 2016, private corporate hospitals in India accounted for nearly 35% of total joint replacements (total knee replacement and total hip replacement) performed. With ~7,600 joint replacements (total knee replacement and total hip replacement) in 2016 across all units, Shalby Limited is one of the largest players with ~15% share among private corporate hospitals across India.


Financials of the Company:

(in Crores) FY 13 FY 14 FY 15 FY 16 FY 17 30th June 17
Revenue  229.8 261.67  277.62 292.55  332.86 90.5
Net Profit  17.1  39.0 25.73  37.58  62.56  14.39


Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW(%) NAV
Shalby Limited 10 7.16 34.63 23.54 30.40
Apollo Hospitals Enterprise Ltd 5 15.88 71.48 2.80 279.44
Fortis Healthcare Ltd 10 8.87 14.89 7.20 121.89
Narayana Hrudayalaya Limited 100 4.09 72.84 8.60 47.14
Healthcare Global Enterprises Ltd 10 2.69 111.12 4.70 57.18


IPO Details:

Details Info
Issue Opens on 5th December 2017
Issue Closes on:. 7th December 2017
Issue Price Rs.245 – 248
Face Value Rs.10
Minimum Lot 60
Minimum Investment Rs.14,480
Retail Allocation 35%
Issue Constitutes 18.84%
Issue Size Rs.504.79 cr
Market Cap Rs.2678.4 cr
Listing at NSE & BSE
Equity Shares Offered ( Fresh) 1,93,54,838
Equity Shares Offered (OFS) 10,00,000
Total Equity Shares Offered (OFS + Fresh) 2,03,54,838
Equity Shares Prior 8,86,54,932
Equity Shares after the issue 10,80,09,770


Subscription Details:

(Subscription-Category-Wise: Till time : 06:00 PM) Shares Offered Day-1 Day-2 Day-3
QIB 41,65,267  0.044  0.34 4.34
NII  30,70,626  0.0091 0.015 0.421
Retail  71,64,793 0.178 0.708 2.89
Employee  1,21,000 0.0426 0.62 1.424
TOTAL  1,45,21,686 0.214 0.46 2.77


Anchor Investor Participation Update:

  • Shalby Hospital raises Rs150 crore from anchor investors.
  • Shares were allocated to 13 investors at Rs.248 per share .
  • Prominent names include Goldman Sachs India Ltd, Citigroup Global Markets, HSBC Global Investment Fund, Axis Mutual Funds, Kotak Funds and Nomura Singapore Ltd.


Important Dates:

Finalization of Basis of Allotment on or Before 12th December 2017
Initiation of Refunds on or Before 13th December 2017
Credit of Equity Shares: on or Before 14th December 2017
Listing Date: on or Before 15th December 2017


IPO Valuation parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
7.16 34.63 23.54% 30.40


Markets Guruji Opinion:

IPO View Apply For: Expected listing Gain:
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Grey Market Premium :

Date IPO Price Band Grey Market premium Kostak Rates
14/12/2017 Shalby Hospital Ltd  245 – 248 07- 09 400 – 500


Check IPO Allotment Status:

Karvy Website (Click on the below Link)


Company Contact Info:
Shalby Limited
Opposite Karnawati Club
Sarkhej Gandhinagar Highway
Near Prahlad Nagar Garden
Ahmedabad – 380 015
Gujarat, India
Tel: +91 79 4020 3000
Fax: +91 79 4020 3120


IPO Registrar Info:
Karvy Computershare Private Limited
Karvy Selenium, Tower B
Plot 31 – 32, Gacchibowli
Financial District, Nanakramguda
Hyderabad – 500 032, Telangana, India
Tel: +91 40 6716 2222
Fax: +91 40 2343 1551
Investor Grievance E-mail: