KK Shah Hospitals Ltd IPO

The hospital has been formed specifically for the purpose of acquisition of the business of M/s Shah Hospital (proprietorship firm one of its Promoters) thus the company has limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or future prospects.

Its revenue is dependent on in-patient treatments, and out-patient primary care, which could decline due to a variety of factors. Any such decline will adversely affect its cash flows and financial position.

There are outstanding litigations pending against its directors, promoters and group companies, which, if determined adversely, could affect its operations.

The hospital is highly dependent on its doctors, nurses and other healthcare professionals, and the loss of, or inability to attract or retain, such persons could adversely affect its business and results of operations.

If the hospital is unable to keep abreast with technological changes, new equipment and service introductions, and evolving industry standards, its business and financial condition may be adversely affected. Further, its will also incur costs associated with replacing obsolete equipment.

Its medical professional staff consists of both employees as well as doctors on a consultancy basis. If such medical staff discontinue their association with it or are unable to provide their services at its hospitals for any reason or if its are unable to attract or retain such consultants/full time doctors, and other healthcare professionals, its business, results of operations and cash flows may be materially and adversely affected.

Delay in receipt of payment from its patients / customers may affect its cash flows, which may, in turn affect its financial condition and results of operations.

Its failure to compete effectively against existing and new competitors, other multispecialty and/or super specialty hospitals and/or medical practitioners, could adversely affect its market share, business, financial condition, results of operations and prospects.

The Company has acquired sole proprietorship firm of one of its Promoters i.e., M/s Shah Hospital after its incorporation vide business transfer agreement dated December 31, 2022. Any future acquisition of other businesses could result in operating difficulties, integration issues and other adverse consequences due to its limited past experience in businesses.

Most of its radiotherapy and diagnostic imaging equipment contain radioactive and nuclear materials or emits radiation during operation which could make it liable for damages.