Lotus Eye Care Hospital Ltd IPO opens 12th June
Price band fixed at Rs 38 to Rs 42
Tweet-- Lotus Eye Care Hospital Limited, the state of the art eye care hospital group successfully functioning in South India with specialization in super-specialty service, proposes to enter the capital markets on 12th June 2008 with a public issue of 1,00,00,000 Equity shares of Rs 10 each through 100% book building process. The price band has been fixed at Rs 38 to Rs 42 per equity share of Rs 10 each. The Issue closes on 17th June 2008. The Issue will constitute 48.09% of the fully diluted post issue paid-up equity share capital of the Company. The Credit Analysis & Research Ltd. (CARE) has assigned “IPO Grade 3” to the Issue. Keynote Corporate Services Ltd is the BRLM and Canara Bank Merchant Banking Division is the Co-Lead Manager for the Issue and S.K.D.C. Consultants Ltd is the Registrar to the Issue.
The Company proposes to utilise the net proceeds of the Issue to part finance its Rs 5500 lacs expansion plan. The plan cover expansion of existing facilities and establishment of new centers with latest technology. To fund this plan, Lotus expects to raise Rs 4200 lacs through the public issue, it has tied up Rs 999.54 lacs of term loans from banks and raises remaining Rs 300.46 lacs through internal accruals.
Lotus plans to strengthen its presence in southern part of India by providing three fold services in eye care industry. It proposes to set up 2 Primary Eye Care units in Bangalore and 1 unit in Chennai with focus on diagnosis and dispensation of simple eye problems and optical sales. Further, Secondary Eye Care centers will be opened at R.S. Puram, Tirupur and Karur and a Tertiary Eye Care center at Salem. It has already bought land at R.S.Puram on which work of construction is in process. The construction at Peelamedu and R.S.Puram has already been commenced. The construction of hospital at Tirupur, Salem and Karur will be commenced after acquisition of suitable land. The Company also intends to set up more eye care centers in different parts of the country.
Lotus Eye Care Hospital Ltd, promoted by renowned eye surgeon Dr. S.K.Sundaramurthy, at present has a network of four eye care hospitals based at Coimbatore (2), Salem (1) and Tirupur (1). These hospitals have hitec eye care equipments and ophthalmic experts backed by well-trained paramedical and administrative team. All the centers have fully computerized modern setup manned by medical and administrative staff. The network of eye care hospitals has 9 operation theatres and 3 lasik laser equipments and total bed strength of all the centers is 120 beds excluding eye camp beds.
In 1998 Lotus introduced Multi Scan Lasik and in 2002 Wave front based Esiris Custom Lasik for the first time in India. Lotus was the first Eye hospital in South East Asia to have Epilasik in July 2004. In June 2005 Lotus introduced the most advanced technology of Zyoptix and combined two superior technologies Epilasik and Zyoptix known as Zyoptix Integrated Epilasik to achieve supervision. During the calendar year 2007, they performed over 4200 nos of various surgeries as cataract, Lasik/Epilasik, corneal, vitreo-retinal, squint, oculoplastic and orbital. All imported hi-end surgical equipments with latest laser technology is used in all the units.
The sources of income for the Company are from outpatient, daycare and inpatient hospital services and retail sales in the pharmacy and opticals. During 2006-2007, the Company reported a net profit of Rs.128.67 lacs on total income of Rs.729.90 lacs. During the nine months period ended 31st December 2007 it reported a net profit of Rs.158.79 lacs on total income of Rs. 897.27 lacs.
Lotus is affiliated to National Board of Examination (NBE) a government body for post-graduate training in ophthalmology. Lotus group has been authorized to educate and train 4 candidates in a year for post-graduate ophthalmology. Lotus also offers fellowship-training programme for fresh and practicing ophthalmology in cataract with IOL surgery, Lasik/Epilasik surgery, vitro-retinal surgery, Pediatric ophthalmology and corneal surgery. An optometry institute affiliated to Dr.Alagappa University, Karaikudy is run by group concern LVRT for courses in Bsc.(Optometry) and Diploma in Ophthalmic Technologies.
Lotus had conducted International ophthalmic conference in Sea Cruise, a Luxury Liner which started its journey from Mumbai and went to Lakshadeep via Goa. The conference was attended by internationally reputed Opthalmic surgeons for a period of 5 days. It was the first time the medical conference was held on sea. For that the name of Lotus has entered into Limca book of records.
Disclaimer
Lotus Eye Care Hospital Ltd is proposing, subject to market conditions and other considerations, a public issue of the equity shares and has filed the Red Herring Prospectus with Registrar of Companies (ROC), Chennai. The Red Herring Prospectus will be available on the website of SEBI at www.sebi.gov.in, the website of the Book Running Lead Manager at www.keynoteindia.net, and the website of the Company at www.lotuseye.org.
This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.
The Equity Shares have not been and will not be registered under the US Securities Act (“the Securities Act”) or any state securities laws in the United States and may not be issued or sold within the United States or to, or for the account or benefit of, “U.S. persons” (as defined in Regulation S under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
Any potential investor should note that investment in equity shares involves a high degree of risk. For details, see the section titled “Risk Factors” of the Red Herring Prospectus, which has been filed with the Registrar of Companies.
Notes to Editor
About Lotus Eye Care Hospitals:
Located in Coimbatore, Salem and Tirupur, Lotus Eye Care Hospitals are one of the leading eye care hospitals in south India. They not only provide treatment for various eye diseases, but also offer comprehensive preventive measures and educational programs.
Offering comprehensive tertiary eye care and manned by specialist ophthalmic consultants, Lotus Hospitals meet international standards in eye care. Over the last 15 years, Lotus has become a trusted name in eye care and thousands of patients have benefited from it.
Lotus has been the pioneer in inducting latest world-class technologies into our country. Multi scan Lasik, Epilasik, Zyoptix Z100 are some of the technologies introduced by Lotus. Their hospitals are equipped with ultra modern fourth generation instruments, required for critical ophthalmic surgeries.