Medistep Healthcare Limited, a dynamic and innovative pharmaceutical company, is launching its Initial Public Offering (IPO) from August 8 to August 12, 2025, with a fixed price issue of ₹16.09 Crores. The entire IPO comprises a fresh issue of 37.44 lakh equity shares priced at ₹43 per share, aimed at funding capital expansion, working capital needs, and general corporate purposes.

With a market capitalisation of ₹61.10 Crores at the issue price and a minimum lot size of 3,000 shares, retail investors will need to invest at least ₹2,58,000 (2 lots of 6,000 shares) to participate in this BSE SME-listed offering. The allotment will be finalised on August 13, 2025, and shares are tentatively expected to list on August 18, 2025.

Strong Presence in Niche Healthcare Segments

Medistep Healthcare has built a strong identity in the pharmaceutical space through its core manufacturing focus on sanitary pads, energy powders, and the trading of a diverse range of pharma products. The company positions itself as a customer-centric, innovation-driven organisation aimed at improving wellness standards.

Their commitment to quality and service has enabled them to earn the trust of customers across markets, and this trust is further underpinned by a professional and visionary leadership team.

Promoter Leadership and Vision

The company is promoted by:

• Mr. Girdhari Lal Prajapat

• Mr. Dabhi Vipul Gobarbhai

• Ms. Prajapati Hetalben Girdharilal

All three bring vast industry knowledge and strategic insight to the company. Their guidance has played a crucial role in helping Medistep Healthcare expand operations, strengthen internal processes, and maintain profitability in a competitive landscape.

Financial Growth Trajectory

Medistep Healthcare has demonstrated strong financial growth over the last three financial years:

• Revenue from operations grew from ₹2,773.69 Lakh in FY23 to ₹4,965.85 Lakh in FY25

• EBITDA rose from ₹142.91 Lakh in FY23 to ₹560.11 Lakh in FY25

• Profit After Tax (PAT) improved significantly from ₹92.10 Lakh in FY23 to ₹414.42 Lakh in FY25

This impressive financial performance indicates the company's ability to scale operations efficiently while maintaining margins.

IPO Pricing and Valuation

The company has reported a pre-issue EPS of ₹4.01 and post-issue EPS of ₹2.92 for FY24. The pre-issue P/E ratio is 10.72x, while the post-issue P/E is 14.74x, which is significantly lower than the industry average P/E of 69x. This makes the IPO appear reasonably priced from a valuation standpoint.

Other important ratios include:

• ROCE (Return on Capital Employed): 38.91%

• ROE (Return on Equity): 29.06%

• RoNW (Return on Net Worth): 24.62%

These metrics highlight the company's efficiency in capital utilisation and overall profitability.

Use of IPO Proceeds

The company intends to use the IPO proceeds as follows:

1. ₹50.75 Lakh for capital expenditure, particularly for purchasing new machinery at its existing facility.

2. ₹1,234.17 Lakh for working capital requirements, to support business expansion.

3. ₹164.01 Lakh for general corporate purposes.

4. The remaining amount will go towards issue-related expenses.

This utilisation strategy is aligned with the company’s focus on capacity enhancement and improved operational efficiency.

Grey Market Premium (GMP) and Listing Expectations

As of August 5, 2025, the Grey Market Premium (GMP) for Medistep Healthcare stands at ₹4, suggesting an expected listing price of ₹47, which translates to a 9.30% potential gain over the issue price. However, it is important to remember that GMP is not an official or regulated indicator, and should be considered for informational purposes only.

How to Check IPO Allotment Status

Investors can check their IPO allotment status from August 13, 2025, by following these steps:

1. Visit the CAMEO Corporate Services IPO Allotment Page

2. Select Medistep Healthcare Limited IPO from the dropdown

3. Enter your Application Number, PAN, or DP Client ID

4. Click Submit to see your status

Once the allotment is confirmed, investors can proceed with actions depending on the number of shares allotted.

Risks and Considerations

While the IPO appears attractively priced, investors should consider the following:

• It is a fixed price issue on the BSE SME platform, which may limit liquidity post-listing

• The GMP is modest, offering limited listing gains

• The company’s ability to maintain margin levels and competitive pricing will be critical as it scales

Despite these risks, Medistep Healthcare’s growth, promoter strength, and industry tailwinds provide confidence for short-term investors targeting listing gains.

Final Thoughts and Recommendation

Medistep Healthcare Limited is offering investors a chance to participate in the fast-growing healthcare sector, supported by strong financials, professional leadership, and a clearly defined growth strategy.

With a GMP suggesting nearly 10% gains, a reasonable valuation, and an upward revenue trend, the IPO presents a moderate-risk, moderate-return opportunity. Investors with an appetite for listing gains may consider subscribing.

Recommendation: Risk-tolerant investors can apply for potential listing gains. Long-term investment depends on future performance.

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 Mahendra Realtors and Infrastructure, Bluestone Jewellery and Lifestyle, Icodex Publishing Solutions, Star Imaging and Path Lab, Medistep Healthcare, ConnPlex Cinemas, ALL Time Plastics, JSW Cement, Sawaliya Foods Products, ANB Metal Cast.

The Current active IPO are Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries, BLT Logistics, Bhadora Industries, Highway Infrastructure.

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