Amwill Healthcare, one of India's fastest-growing companies in the field of dermatology, trichology, and cosmetology, is launching its IPO in 2025 with a fresh issue of ₹59.97 crores. The IPO is set to offer retail investors and high-net-worth individuals a unique opportunity to invest in a business known for its focus on high-tech dermatological and cosmetic products, blending natural ingredients with advanced active substances.

Key Highlights of Amwill Healthcare IPO

Amwill Healthcare’s IPO includes an issue of 44.03 lakh shares, worth ₹48.87 crores, alongside an Offer for Sale (OFS) of 10 lakh shares amounting to ₹11.1 crores. The IPO price is set between ₹105 and ₹111 per equity share, with a market capitalization of ₹222.04 crores at the upper price band of ₹111. The lot size of the IPO is 1,200 shares, meaning retail investors will need to invest at least ₹1,33,200 to apply for one lot. For high-net-worth individuals (HNIs), the minimum investment is ₹2,66,400 for two lots. The IPO subscription period runs from February 5, 2025 to February 7, 2025, with the listing set for February 12, 2025, on the BSE SME platform.

Amwill Healthcare’s Financials and Performance Insights

As of the fiscal year ended September 30, 2024, Amwill Healthcare reported a revenue of ₹2,324.71 lakh, reflecting its steady growth in operations. In comparison, the revenue in 2023 was ₹4,428.41 lakh, and ₹3,028.25 lakh in 2022. The company’s EBITDA for the same period was ₹893.04 lakh in FY24, which is a significant increase from ₹441.19 lakh in FY22, indicating robust operational efficiency. The company’s profit after tax (PAT) stood at ₹651.66 lakh in FY24, compared to ₹257.37 lakh in FY22, demonstrating impressive profitability.

The company’s Return on Capital Employed (ROCE) for FY24 is a healthy 94.16%, and its Return on Equity (ROE) stands at 73.06%, showcasing strong financial returns and effective capital utilization. Pre-issue EPS for FY24 is ₹8.04, and the post-issue EPS is ₹6.27. These financial metrics place the IPO’s pre-issue P/E ratio at 13.81x, which is significantly lower than the industry average of 36x, indicating that the IPO might be fully priced.

Grey Market Premium (GMP) and IPO Valuation

The grey market premium for the Amwill Healthcare IPO has been noted at ₹0, reflecting the lack of speculative demand for the IPO in the grey market. The absence of trading in the grey market makes it impossible to accurately gauge the listing price before the shares are officially listed on the stock exchange. Nevertheless, the financial performance and valuation of Amwill Healthcare suggest that the IPO is priced at a fair level, offering limited listing gains.

IPO Allotment and Subscription Status

As of February 7, 2025, the live subscription status indicates that the IPO has been subscribed 1.69 times on the final day of the subscription period. Investors will need to check the allotment status on February 10, 2025, by visiting the registrar’s website and entering their application details.

Utilization of IPO Proceeds

Amwill Healthcare plans to use the proceeds from the IPO for the following purposes:

1. ₹2,500.00 lakh for working capital requirements.
2. ₹500.00 lakh for marketing and brand-building activities.
3. The remainder for general corporate purposes.

Conclusion: Is Amwill Healthcare IPO a Good Investment?

Given its strong financial performance, including steady growth in revenue and profitability, and attractive P/E ratio, Amwill Healthcare presents a promising opportunity for investors. However, with the grey market premium reflecting low speculative demand, retail investors and HNIs should carefully consider the IPO’s price band and financial health before making their investment decisions.

The Upcoming IPOs in this week and coming weeks are PS Raj Steels, Chandan Healthcare, Ajax Engineering, Voler Car, Maxvolt Energy, Hexaware Technologies.

The Current active IPO are Eleganz Interiors, Readymix Construction, Solarium Green, Ken Enterprises, Amwill Healthcare.

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