Chandan Healthcare, a prominent diagnostic service provider in North India, launched its Initial Public Offering (IPO) for subscription on Monday, February 10. The IPO will remain open until Wednesday, February 12. The company has set a price band of ₹151 to ₹159 per share, aiming to raise over ₹107 crore at the upper limit. The offering consists of a fresh issue of 44.52 lakh shares worth ₹70.79 crore and an offer for sale (OFS) of 23 lakh shares amounting to ₹36.57 crore. The company plans to use the proceeds from the fresh issue to establish a new diagnostic centre in Lucknow and set up a central reference laboratory in Ayodhya and Lucknow, Uttar Pradesh.
The minimum lot size for an application is 800 shares, with retail investors required to invest at least ₹1,27,200. The IPO allocation is structured with up to 50% of the offer reserved for Qualified Institutional Buyers (QIBs), a minimum of 35% allocated for retail investors, and at least 15% designated for Non-Institutional Investors (NIIs).
Apart from using parts of the proceeds in Lucknow and Ayodhya, the company plans to allocate the remaining funds for general corporate purposes.As of 12:45 PM on February 11, the IPO had been subscribed 0.26 times. The grey market premium (GMP) for Chandan Healthcare IPO stands at ₹10, suggesting that the shares could list at ₹169 per share on the NSE SME platform, reflecting a 6% premium over the IPO price of ₹159. The company’s shares are scheduled to be listed on Monday, February 17.
Chandan Healthcare operates a well-established diagnostic network in North India, offering pathology and radiology testing services. As of December 31, 2024, the company had one flagship laboratory, nine central laboratories, twenty-seven satellite centres, and more than three hundred collection centres across Jaipur, Uttar Pradesh, and Uttarakhand. In Fiscal 2025, up until December 2024, the company conducted approximately 55.79 lakh tests for about 17.11 lakh patients, with 70.04% of its revenue generated from operations in Uttar Pradesh. The company provides an extensive portfolio of 1,496 specialized tests across various medical fields. For the period ending December 2024, product sales contributed 47% of total revenue, pathology services accounted for 34.22%, and radiology services made up 18.77%. With its strong presence and continuous expansion, Chandan Healthcare remains a key player in the diagnostics industry.
