Wockhardt hospitals is a leading private health care service company in India.It was established in the year 1991 under the name First hospitals and heart institute.It has hit the capital markets already and the IPO has opened on Jan 31st and is already closed on Feb 5th.The company has issued 2.5 crore equity shares of face value Rs 10 each which represents 24% of the post issue equity capital of the company.

The price band was   decided at Rs 280 - Rs310,but later revised to Rs 225 to Rs260.Around 70% of the capital will be utilized from the net proceeds for the construction of green field hospitals.And the remaining money will be used for pre- payment of loans taken by the company to fund its capital expenditure.

Lead by the industry Appolo Hospitals which have the capacity of 6,952 beds as against 1,390 of Wockhardt hospitals.They had a average occupancy of 68% in the last year.It has 15 hospitals in western,southern and eastern India.The company has plans to capture the medical tourism market in coming days which has big share in the over all business and is rising continuously.

In the year ending 2007,its net profits stood at Rs 15.3 crores.The valuations of the company looks expensive as compared to the other players in the market. Fitch the rating agency has assigned a rating of 4 out of 5 to this IPO.But analyst suggest to invest in peer companies like Appolo hospitals as the P/E is lower comparatively.All the projects of the company will be over by 2010 only then it will start giving value for the money invested in the company.So its a long term script,more ever the markets are still jittery and the issue may see a subdued opening.

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