Lotus Eye Care Hospitals IPO

Another IPO is set to hit the markets in the coming days. The IPO belongs to Coimbatore based Lotus Eye Care Hospital, which is coming out with its Lotus Eye care hospitals IPO or initial public offering.

How many shares will be offered for sale through the Lotus Eye care hospitals IPO?
A total of 10 million shares will be sold through the Lotus Eye care hospitals IPO through a 100% book building process. The issue would constitute 48.09% of the fully diluted post issue paid-up equity capital of the company.

What is the expected size of the Lotus Eye care hospitals IPO ?
The Lotus Eye care hospitals IPO is expected to raise around 420 million Rs. through the Lotus Eye care hospitals IPO.

What are the opening and closing dates of the Lotus Eye care hospitals IPO?
The Lotus Eye care hospitals IPO will open on June 12 and will close on June 17, 2008.

What is the price band of the Lotus Eye care hospitals IPO shares?
The Lotus Eye care hospitals IPO shares have been priced in the price range of Rs. 38 to Rs. 42 per share.

Any rating assigned to the Lotus Eye care hospitals IPO?
Yes. CARE has assigned a rating of Grade 3 for the Lotus Eye care hospitals IPO. It indicates average fundamentals.

Where will the capital raised from Lotus Eye care hospitals IPO be used?
The fund raised from the Lotus Eye care hospitals IPO will be used for its expansion plans.

What are the business valuations, financial results and market outlook of Lotus Eye care hospitals IPO?
Lotus Eye Care Hospital is the eye care hospital group functioning in South India with specialization in super-specialty service related to eye care. It has network of four eye care hospitals based at Coimbatore (2), Salem (1), Tirupur (1). It operates in outpatient, daycare and inpatient hospital services and retail sales in the pharmacy and optical. During the financial year 2006-2007, it reported a net profit of Rs 12.87 million on total income of Rs 72.99 million.

The equity shares are proposed to be listed on Bombay Stock Exchange of India (BSE) and National Stock Exchange (NSE). Keynote Corporate Services is helping the company in the process of raising funds from the market. Pharma companies and hospitals always make a good investment, but in the long run. The only risks are management fallout and from competitors.

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