KRM Ayurveda is going public with an SME IPO to raise Rs 77.49 crore.
The IPO is a fresh issue of 0.57 crore shares, priced between Rs 128 and Rs 135 per share.
The IPO will open for subscription on January 19 and close on January 21.
Share allotment is expected on January 22, and the shares are likely to list on the NSE SME platform on January 27, as per the tentative schedule.
Objectives of the IPO
The funds raised from the IPO will be used for:
Rs 13.67 crore for building and developing telemedicine facilities
Rs 22.90 crore for working capital requirements
Rs 12.50 crore to repay existing borrowings
Lot Size and Application Details
Retail investors: Minimum 2 lots of 100 shares each (Rs 2.70 lakh)
HNI investors: Minimum 3 lots of 3,000 shares (Rs 4.05 lakh)
Book running lead manager: NEXGEN Financial Solutions
Registrar: Skyline Financial Services
Market Maker: Mansi Share & Stock Broking
About KRM Ayurveda
KRM Ayurveda operates a network of hospitals and clinics in India and also provides telemedicine services internationally.
Incorporated: 2019
Operations: 6 hospitals and 5 clinics across multiple cities
Products: Ayurvedic medicines, herbal remedies, supplements, and wellness/skin care products
The company focuses on providing healthcare through both physical clinics and telemedicine platforms.
Key Risks for Investors
Investors should be aware of the following risks before applying:
Non-ownership of premises: Most hospitals and offices are leased, not owned.
Any lease issues could disrupt operations and increase costs.
Revenue concentration: Around 68% of revenue comes from Delhi and Haryana, making the business heavily dependent on these regions.
High employee attrition: Staff turnover has been very high, reaching 78.47% in FY24, which can impact service quality.
Legal proceedings: The company and promoters face ongoing litigations and consumer complaints, including allegations of medical negligence and product efficacy.
Dependence on third-party payers: A large part of revenue comes from insurance providers and government schemes.
Any delays or changes in reimbursements could affect cash flow and profitability.
KRM Ayurveda’s SME IPO offers investors an opportunity to participate in the growing Ayurvedic and healthcare sector, but potential applicants should carefully consider the risks related to operations, revenue concentration, and legal matters.
