Amwill Healthcare IPO Overview: Amwill Healthcare, one of the fastest-growing dermatology companies in India, has caught the attention of investors with its upcoming IPO. This IPO, opening on February 5, 2025, aims to raise ₹ 59.97 Crores, which will be used for funding the company's working capital requirements, marketing and brand-building activities, and general corporate purposes. The IPO consists of a fresh issue of 44.03 Lakh shares worth ₹ 48.87 Crores and an offer for sale of 10.00 Lakh shares amounting to ₹ 11.1 Crores.

The share price for the IPO is set between ₹ 105 and ₹ 111 per equity share. Based on the higher price of ₹ 111 per share, the market capitalization of Amwill Healthcare at the IPO price will be ₹ 222.04 Crores. This positions the company as a strong player in the dermatology, trichology, and cosmetology markets. The lot size for the IPO is 1,200 shares, and retail investors will need to invest a minimum of ₹ 1,33,200 to participate.

For high-net-worth individuals (HNIs), the minimum investment is 2 lots, which comes to ₹ 2,66,400. Unistone Capital Private Limited is the book running lead manager for the IPO, while Bigshare Services Private Limited acts as the registrar, and Globalworth Securities Limited is the market maker.

Amwill Healthcare IPO Subscription Status: As of February 7, 2025, the Amwill Healthcare IPO has been subscribed 5.49 times on the final day of the subscription period. This indicates strong demand from investors, making it an interesting prospect for retail and institutional investors alike. The allotment will be finalized on February 10, 2025, and the shares are expected to be listed on the BSE SME with a tentative listing date of February 12, 2025.

Grey Market Premium and IPO Performance: Despite a solid financial track record, the Grey Market Premium (GMP) for Amwill Healthcare is expected to be ₹ 0, reflecting the cautious sentiment of market participants. The GMP is an unregulated indicator of expected listing price, but it cannot be relied upon for price discovery until the shares are officially listed. Investors should note that no real trading occurs based on GMP, and it is typically not a reliable method for predicting listing gains.

Amwill Healthcare IPO Financial Performance: The company has shown consistent growth in revenue, with a notable EBITDA of ₹ 893.04 Lakh as of September 30, 2024. The company’s Profit After Tax (PAT) for the same period stood at ₹ 651.66 Lakh. Amwill Healthcare's key financial metrics, such as Return on Capital Employed (ROCE) and Return on Net Worth (RoNW), indicate a strong profitability profile for the company, with figures of 94.16% and 73.06%, respectively.

Despite this, the pre-issue P/E ratio stands at 13.81x, with a post-issue P/E ratio of 17.71x, which is significantly lower than the industry average of 36x. These figures suggest that the IPO is fully priced, and investors may not see significant listing gains.

IPO Objectives and Utilization of Proceeds: The primary objectives of the Amwill Healthcare IPO include raising capital for working capital requirements, marketing activities, and general corporate purposes. A large portion of the funds, specifically ₹ 2,500 Lakhs, will be used to strengthen the company's working capital base, allowing it to meet the growing demand for its dermatology products. The company also plans to spend ₹ 500 Lakhs on marketing and branding, strengthening its presence in the highly competitive dermatology market.

Investor Sentiment and Recommendations: While Amwill Healthcare offers a promising business model in the expanding dermatology space, its IPO valuation may not be attractive for those seeking listing gains. The lack of a Grey Market Premium and the fully priced nature of the IPO suggest that investors may not benefit significantly in the short term.

Therefore, investors seeking long-term opportunities in the dermatology sector may still find Amwill Healthcare to be a solid investment, but those looking for quick gains from the IPO listing may be disappointed. Given the IPO's strong subscription rates and the company's robust financials, Amwill Healthcare presents an intriguing but cautious opportunity for investors.

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

The Current active IPO are Eleganz Interiors, Readymix Construction, Solarium Green.

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