Aakaar Medical Technologies Limited, a prominent name in the medical aesthetics and cosmetic devices segment, has launched its Initial Public Offering (IPO) on the NSE SME platform. The issue, which is a Book Built Issue worth ₹27.00 Crores, consists entirely of a fresh issue of 37.50 lakh equity shares.

The IPO subscription period opened on June 20, 2025, and closes on June 24, 2025. The price band is fixed at ₹68 to ₹72 per equity share. At the upper end of the band, the market capitalisation of Aakaar Medical Technologies will be approximately ₹102.04 Crores.

The company has set the lot size for the IPO at 1,600 shares, which translates to a minimum investment of ₹1,15,200 for retail investors. High-Net-Worth Individuals (HNIs) must subscribe to a minimum of 2 lots (3,200 shares), with an investment of ₹2,30,400. The shares will be listed on June 27, 2025, and the allotment will be finalized on June 25, 2025.

The IPO is managed by Indorient Financial Services Limited as the Book Running Lead Manager, while Bigshare Services Private Limited is the Registrar to the issue. Alacrity Securities Limited acts as the Market Maker for this IPO.

Company Background

Aakaar Medical Technologies operates in the niche segment of medical aesthetics, dealing in aesthetic and specialized cosmetic products and devices. Its offerings include a mix of own brands (manufactured domestically and internationally) and imported brands from Korea, Spain, Italy, and Austria. The company's strong distribution network helps in marketing these brands across India, targeting dermatologists, cosmetologists, and clinics.

The company is promoted by Dilip Ramesh Meswani, who brings over 24 years of experience, and Bindi Dilip Meswani, with over 10 years of expertise in medical aesthetics.

Financial Performance

Aakaar Medical Technologies has demonstrated a consistent financial trajectory over the last three years:

• Revenue from operations:

  • FY23: ₹3,287.85 Lakh

  • FY24: ₹4,627.04 Lakh

  • FY25: ₹6,176.07 Lakh

• EBITDA:

  • FY23: ₹362.25 Lakh

  • FY24: ₹515.83 Lakh

  • FY25: ₹991.48 Lakh

• Profit After Tax (PAT):

  • FY23: ₹215.32 Lakh

  • FY24: ₹287.02 Lakh

  • FY25: ₹603.95 Lakh

These numbers reflect strong top-line and bottom-line growth, signaling efficient business operations and expanding market share.

Valuation and Key Metrics

For FY24, the pre-issue EPS stood at ₹6.13, and the post-issue EPS is estimated at ₹4.26. The pre-issue P/E ratio is 11.74x, while the post-issue P/E ratio is 16.90x, which is considered fairly priced based on the industry average.

Other important financial ratios include:

• ROCE (Return on Capital Employed): 21.02%

• ROE (Return on Equity): 33.81%

• RoNW (Return on Net Worth): 33.81%

These ratios indicate strong profitability and efficient capital utilization, though the valuation seems modestly priced rather than deeply discounted.

Grey Market Premium (GMP)

As per market reports, the Grey Market Premium (GMP) for the Aakaar Medical Technologies IPO is ₹0, suggesting no expected listing gain. This reflects a lack of speculative demand in the unregulated grey market. However, this does not necessarily imply a weak stock; it could also reflect a low investor risk appetite in the SME segment during this period.

IPO Subscription Status

On the final day of subscription, as of 11:00 AM on June 24, 2025, the IPO was subscribed 0.84 times, indicating marginal under-subscription. This shows moderate interest from investors, possibly influenced by the high entry barrier (lot size), absence of GMP, and other SME IPOs in the market.

Anchor Investor Participation

Despite the lack of GMP traction, anchor investors showed confidence in the company. Aakaar Medical Technologies raised ₹7.68 Crores from them by allocating 10,67,200 shares at ₹72 per share. This investment by institutional players adds a layer of credibility to the issue.

Use of IPO Proceeds

The net proceeds from the IPO are proposed to be utilized as follows:

1. ₹2,035.00 Lakhs will be deployed towards funding working capital requirements, ensuring smooth daily operations and inventory management.

2. Remaining funds will be used for general corporate purposes, allowing flexibility for strategic initiatives, marketing, or debt servicing.

Allotment and Listing Timeline

The allotment date is scheduled for June 25, 2025, and investors can check their allotment status via the registrar’s website using PAN, application number, or DP ID. The tentative listing date is June 27, 2025, on the NSE SME platform.

Expert Review: Should You Subscribe?

Although Aakaar Medical Technologies operates in a high-growth medical aesthetic space and has shown strong financial performance, the lack of GMP, low subscription figures, and high minimum investment requirement make this IPO less appealing for retail investors.

The IPO appears to be fairly priced, but without any premium in the grey market or overwhelming investor interest, the listing gains look minimal to none. Hence, based on current market sentiment and valuation, risk-averse investors are advised to avoid this IPO, especially for short-term listing gains.

Conclusion

Aakaar Medical Technologies IPO offers exposure to a niche medical aesthetics market with proven growth and profitability. However, the combination of neutral grey market sentiment, high investment thresholds, and low subscription limits its short-term attractiveness.

Investors with a long-term horizon and familiarity with SME risks may explore this opportunity post-listing, but listing day returns are unlikely. Until then, those seeking safer or more liquid IPOs might be better served elsewhere.

Disclaimer: The above review is based on publicly available data and market analysis and should be used for educational purposes only. This does not constitute investment advice, and investors are advised to consult certified financial advisors before making any investment decisions. Investments in securities markets are subject to market risks.

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