Aakaar Medical Technologies, a growing name in the medical aesthetics and cosmetic device industry, concluded its Initial Public Offering (IPO) subscription on June 24, 2025, after opening on June 20, 2025. The company aims to raise ₹27.00 crores through a Book Built Issue of 37.50 lakh equity shares, all of which comprise a fresh issue.

The IPO’s price band was set between ₹68 to ₹72, with the company targeting a market capitalisation of ₹102.04 crores at the upper end. The lot size was fixed at 1,600 shares per lot, requiring a minimum investment of ₹1,15,200 for retail investors. High-Net-Worth Individuals (HNIs) were required to apply for 2 lots, amounting to ₹2,30,400.

The book running lead manager for the IPO was Indorient Financial Services Limited, and Bigshare Services Private Limited acted as the registrar. Alacrity Securities Limited served as the market maker for this IPO.

Company Overview

Aakaar Medical Technologies operates as a medical aesthetic company, dealing in a comprehensive range of cosmetic products and aesthetic devices. Their offerings are categorised into:

• Own Brands: This includes both domestically manufactured products and internationally sourced devices

• Imported Brands: Distribution of popular international brands sourced from Korea, Spain, Italy, and Austria

With their dual strategy of in-house product development and foreign brand distribution, Aakaar serves a growing demand for advanced cosmetic solutions in the Indian market.

The company is led by Dilip Ramesh Meswani with over 24 years of experience and Bindi Dilip Meswani, who has over 10 years of expertise in the field of medical aesthetics.

IPO Grey Market Premium (GMP)

As per the latest update dated June 18, 2025, the Grey Market Premium (GMP) of Aakaar Medical Technologies IPO stands at ₹0, with the expected listing price remaining equal to the IPO price of ₹72. This indicates a lack of speculative demand in the unofficial trading market.

While GMP is not a definitive indicator of listing performance, the absence of any premium generally lowers confidence in immediate gains post-listing.

IPO Subscription Status

As of 7:00 PM on June 24, 2025, the IPO has received moderate subscription interest:

• Overall Subscription: 2.19 times

• The IPO performance on the final day was relatively muted, showing lukewarm retail and institutional participation

This reinforces that while the company’s fundamentals might be in place, listing-day enthusiasm may be limited.

Anchor Investors & Pre-IPO Allocation

Ahead of the IPO opening, Aakaar Medical Technologies secured ₹7.68 crores from anchor investors by allotting 10,67,200 shares at ₹72 per share, showing some institutional trust in the company’s prospects. The allocation was made in consultation with the lead manager, as per standard protocol.

Financial Performance Snapshot

The company has demonstrated strong revenue growth and improving profitability, suggesting a healthy business trajectory.

• Revenue from Operations:

  • FY2023: ₹3,287.85 lakh

  • FY2024: ₹4,627.04 lakh

  • FY2025: ₹6,176.07 lakh

• EBITDA:

  • FY2023: ₹362.25 lakh

  • FY2024: ₹515.83 lakh

  • FY2025: ₹991.48 lakh

• Profit After Tax (PAT):

  • FY2023: ₹215.32 lakh

  • FY2024: ₹287.02 lakh

  • FY2025: ₹603.95 lakh

This strong performance indicates effective scaling of operations, with PAT nearly tripling over a span of two years.

Valuation Metrics and Ratios

A deeper look into the IPO valuation reveals:

• Pre-issue EPS (FY24): ₹6.13

• Post-issue EPS (FY24): ₹4.26

• Pre-issue P/E: 11.74x

• Post-issue P/E: 16.90x

• Return on Capital Employed (ROCE): 21.02%

• Return on Equity (ROE): 33.81%

• Return on Net Worth (RoNW): 33.81%

These ratios signal that Aakaar Medical Technologies IPO is fairly priced and reflects a stable financial base, albeit with no immediate listing gain upside.

IPO Proceeds Utilisation

The funds raised from the IPO are proposed to be utilised as follows:

1. ₹2,035.00 lakh towards working capital requirements

2. Balance for general corporate purposes

This capital allocation shows a focus on operational liquidity, which aligns with the company's expansion-oriented strategy.

Allotment and Listing Details

The IPO allotment is expected to be finalized on Wednesday, June 25, 2025, with the shares likely to be listed on NSE SME on Friday, June 27, 2025.

Investors can check allotment status by visiting the registrar's website (Bigshare Services Pvt Ltd) and entering details like application number, PAN, or DP Client ID.

Analyst Review and Investment Outlook

Despite the steady growth in financial metrics and sectoral demand, the lack of grey market premium, combined with a modest subscription figure, suggests that the IPO may not provide significant listing-day gains.

The IPO is reasonably valued, but from a short-term perspective, it appears unattractive for listing pop-focused investors.

As a result, analysts recommend investors to avoid the IPO for listing gains. Long-term investors may still consider it after evaluating post-listing stock stability and business performance.

Conclusion

Aakaar Medical Technologies IPO, despite a diverse portfolio in a niche industry, seems to lack investor excitement on the listing front. With ₹0 GMP, moderate subscription, and fair valuations, the IPO does not currently present a strong listing opportunity. Investors should exercise caution and consider entering post-listing based on secondary market trends.

The IPO is best suited for investors with a long-term view, particularly those confident in the growth of the medical aesthetics industry in India.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult a certified financial advisor before making any investment decisions. Market risks are inherent, and past performance does not guarantee future returns.

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