Aakaar Medical Technologies Limited, a key player in the medical devices and healthcare technology segment, is preparing to launch its Initial Public Offering (IPO) on the SME platform, with a price band fixed between ₹76 and ₹80 per equity share. The company’s IPO is expected to open for public subscription in the last week of June 2025.

The IPO is a pure fresh issue, with proceeds to be utilised for capacity expansion, research & development, and working capital needs as the company scales operations in India’s growing med-tech and diagnostic device market.

IPO Details

• IPO Type: Book Built Issue (SME Segment)

• Price Band: ₹76 to ₹80 per share

• Issue Size: ₹48 crore (approx)

• Face Value: ₹10 per share

• IPO Dates: Likely from June 26 to June 28, 2025 (Tentative)

• Lot Size: 1,600 shares

• Minimum Investment: ₹1,28,000 (Retail Investors)

• Listing: NSE SME

• Lead Manager: Beeline Capital Advisors Pvt Ltd

• Registrar: Bigshare Services Pvt Ltd

• Market Maker: Nikunj Stock Brokers

The issue consists of a fresh issue of 60 lakh equity shares, with no Offer for Sale (OFS), showing the promoters' intent to retain ownership and fund company growth directly.

About Aakaar Medical Technologies

Founded in 2010, Aakaar Medical Technologies develops, manufactures, and supplies medical devices, diagnostic kits, and healthcare accessories under the “AakaRx” brand. It operates across:

• ICU equipment and surgical accessories

• Diagnostic consumables and test kits

• Point-of-care medical solutions

• Hospital furniture and clinical tools

The company serves both domestic hospitals and export markets, with clients ranging from private clinics and government institutions to pharmaceutical distribution networks. It has a state-of-the-art manufacturing facility in Gujarat, with ISO 13485 certification and CE-marked products.

Financial Highlights

The company has posted consistent growth in both revenue and profit margins:

• Revenue (FY24): ₹68.3 crore

• Profit After Tax (FY24): ₹6.1 crore

• EBITDA Margin: ~13.2%

• Net Profit Margin: ~8.9%

• ROE: 20.7%

• ROCE: 18.9%

• Debt-to-Equity Ratio: 0.55

The strong capital efficiency and profitability metrics position Aakaar as a scalable and stable healthcare business with IPO proceeds expected to boost future capacity.

Grey Market Premium (GMP) Status

As of June 23, Grey Market Premium (GMP) for Aakaar Medical Technologies IPO is reportedly around ₹12–₹15, reflecting optimism in the SME healthcare space. This suggests a listing gain of approximately 15–18% over the issue price.

Please note that GMP is unofficial and purely speculative, yet it remains a key indicator of pre-listing interest among HNIs and retail investors.

Industry Outlook

India’s medical device sector is projected to grow at a CAGR of 16%, driven by:

• Increased healthcare infrastructure spending

• Government support through PLI schemes for med-tech

• Rising demand for diagnostic and affordable devices post-COVID

• Make-in-India emphasis for medical equipment self-reliance

Aakaar Medical Technologies, with its in-house design, ISO compliance, and local manufacturing, stands to benefit immensely from this trend.

Peer Comparison

The company will be compared with:

• Yuvraaj Hygiene (SME)

• Innovative Tyres & Tubes (for product diversity in SME healthcare)

• Poly Medicure and Trivitron (larger, non-listed peers)

Aakaar offers a niche med-tech portfolio in the SME segment, enabling differentiation in value-added diagnostics and hospital-use tools.

Objectives of the IPO

Funds raised through the IPO will be used for:

• Enhancement of production facilities and addition of automation

• Expansion into Tier-2 and Tier-3 hospital procurement networks

• R&D and new product development in diagnostics

• Marketing and distribution strengthening

• General corporate purposes

Risks to Consider

Potential investor risks include:

• High dependence on few hospital networks and distributors

• Global competition in low-cost diagnostic kits

• Regulatory and compliance-related risks in export markets

• SME stock volatility post listing

Despite these, the company’s technical capabilities, cost advantage, and focus on innovation provide resilience.

Conclusion

The Aakaar Medical Technologies IPO offers investors a chance to participate in a rising healthcare manufacturer with solid financials and high industry relevance. Backed by growing demand, operational efficiency, and IPO valuation within peer benchmarks, this issue is expected to attract strong subscription, especially from retail investors in SME IPOs.

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are Abram Food, PRO FX Tech, Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel.

The Current active IPO are  Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures, ArisInfra Solutions, Influx Healthtech.

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Recommendation: Positive for long-term investors with interest in healthcare growth. Track subscription and GMP for short-term listing potential.