Unlocking Potential: A Deep Dive into the Medistep Healthcare IPO
The Indian primary market is buzzing, and the Small and Medium Enterprises (SME) segment continues to offer exciting opportunities for investors. Among the upcoming offerings, Medistep Healthcare Limited is poised to make its debut. This blog post provides a comprehensive analysis of the Medistep Healthcare IPO, offering insights into its business, financial health, and the details crucial for potential investors.
■ IPO Snapshot: Medistep Healthcare at a Glance
Medistep Healthcare's initial public offering is a fixed-price issue aiming to raise capital for its growth initiatives. Here’s a quick overview of the key particulars:
| Detail | Information |
|---|---|
| Issue Type | Fixed Price IPO |
| Issue Size | 37.44 lakh shares (aggregating up to ₹16.10 Crores) |
| Offer Type | Entirely a Fresh Issue |
| Face Value | ₹10 per share |
| Issue Price | ₹43 per share |
| Listing At | NSE SME |
■ Decoding the IPO Journey: The Timeline
Understanding the IPO timeline is crucial for every investor to plan their application and track the process. From the bidding window to allotment and eventual listing, here's the tentative schedule for Medistep Healthcare IPO:
Interactive IPO Timeline: From Open to Listing
| Event | Tentative Date |
|---|---|
| IPO Open Date | Friday, August 8, 2025 |
| IPO Close Date | Tuesday, August 12, 2025 |
| Tentative Allotment Date | Wednesday, August 13, 2025 |
| Initiation of Refunds | Thursday, August 14, 2025 |
| Credit of Shares to Demat Account | Thursday, August 14, 2025 |
| Tentative Listing Date | Monday, August 18, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 12, 2025 |
■ Understanding Your Investment: Lot Size and Application
For SME IPOs, the investment structure revolves around lot sizes. Here’s what retail and High Net Worth Individual (HNI) investors need to know about the minimum and maximum application amounts for Medistep Healthcare IPO:
| Application Category | Lots (Minimum) | Shares (Minimum) | Amount (Minimum) |
|---|---|---|---|
| Individual Investors (Retail) | 2 | 3,000 | ₹1,29,000 |
| HNI Investors | 5 | 7,500 | ₹3,22,500 |
Retail investors can apply for a maximum of 4 lots (9,000 shares) amounting to ₹3,87,000. All bids must be in multiples of 1,500 shares.
■ Subscription Breakdown: How Shares Are Allocated
The total issue of 37.44 lakh shares is strategically allocated among different investor categories, ensuring broad participation. Here's how the shares are reserved:
| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Market Maker | 1,89,000 | 5.05% |
| Non-Institutional Investors (NII / HNI) | 17,76,000 | 47.44% |
| Retail Individual Investors (RII) | 17,79,000 | 47.52% |
| Total Shares Offered | 37,44,000 | 100.00% |
■ Company at a Glance: Medistep Healthcare's Business & Strengths
Established in June 2023, Medistep Healthcare Limited is a pharmaceutical entity with a diverse product portfolio. The company focuses on manufacturing sanitary pads and energy powder, alongside trading various pharmaceutical, nutraceutical, intimate care, and surgical products. Their commitment lies in maintaining quality and expanding their product range.
Key Product Offerings:
- Sanitary Pads: Producing high-quality feminine hygiene products under the 'DRYSTEP' brand.
- Energy Powder: Manufacturing 'VITASTEP Z' energy supplements.
- Pharmaceutical Products: Engaging in the trading of essential pharmaceutical items.
- Nutraceutical Products: Offering products that combine nutrition and pharmaceuticals for overall wellness.
- Intimate Care and Hygiene Products: Providing a range of personal hygiene solutions.
- Surgical Products: Supplying necessary tools and equipment to medical professionals.
Competitive Strengths:
- Experienced Promoters and a competent Management Team.
- Focus on maximizing resources for quality supply and achieving cost savings through economies of scale.
- Diversified product offerings, including both manufacturing and trading segments.
■ Financial Health Check: A Look at Medistep's Performance
Medistep Healthcare has shown a promising financial trajectory over the past few years, reflecting growth in its operations. Let's delve into the numbers that highlight the company's fiscal health:
Between the financial year ending March 31, 2024, and March 31, 2025, the company's revenue increased by a significant 57%, while its Profit After Tax (PAT) saw a rise of 42%.
Restated Standalone Financial Information (Amounts in ₹ Crore)
| Period Ended | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|
| Assets | 22.99 | 14.96 | 14.66 |
| Total Income | 49.66 | 31.63 | 27.74 |
| Profit After Tax (PAT) | 4.14 | 2.91 | 0.92 |
| EBITDA | 5.60 | 3.96 | 1.34 |
| Net Worth | 16.83 | 11.69 | 1.07 |
| Reserves and Surplus | 6.37 | 6.79 | - |
| Total Borrowing | 0.64 | 0.33 | 0.53 |
Key Performance Indicators (KPIs) as of March 31, 2025
The market capitalization of Medistep Healthcare IPO is ₹61.10 Crores.
| KPI | Values |
|---|---|
| Return on Equity (ROE) | 29.06% |
| Return on Capital Employed (ROCE) | 38.91% |
| Return on Net Worth (RoNW) | 29.06% |
| Profit After Tax (PAT) Margin | 8.35% |
| EBITDA Margin | 11.27% |
| Price to Book Value | 2.67 |
Earnings and Valuation Snapshot:
- Pre-IPO EPS: ₹3.96
- Post-IPO EPS: ₹2.92
- Pre-IPO P/E Ratio: 10.86x
- Post-IPO P/E Ratio: 14.74x
*Note: The Post-IPO EPS is calculated based on the post-issue shareholding and annualized FY earnings as of March 31, 2025.
■ Meet the Visionaries: Promoter Shareholding
The leadership team behind Medistep Healthcare consists of experienced individuals guiding the company's strategic direction. The promoters are Girdhari Lal Prajapat, Dabhi Vipul Gobarbhai, Prajapati Hetalben Girdharilal, and Jagdish Prajapati.
| Holding Stage | Percentage (%) |
|---|---|
| Shareholding Pre-Issue | 93.62% |
| Shareholding Post-Issue | 68.96% |
This change reflects the dilution due to the fresh issue of shares, a common occurrence in IPOs.
■ Purpose of the Public Offering: Unpacking the IPO Objectives
The capital raised through this IPO will be strategically deployed to fuel Medistep Healthcare's expansion plans and operational requirements, strengthening its market position. The net proceeds are proposed to be utilized for the following key objectives:
| S.No. | Objects of the Issue | Expected Amount (₹ in crores) |
|---|---|---|
| 1 | Funding of capital expenditure towards purchase of plant and machineries for expansion at the existing manufacturing facility | 0.51 |
| 2 | Working Capital requirements | 12.34 |
| 3 | General Corporate Purpose | 1.64 |
A significant portion of the funds is allocated towards working capital, which is crucial for managing day-to-day operations and facilitating business growth.
■ SWOT Analysis: Assessing Medistep Healthcare's Potential
A SWOT analysis provides a balanced perspective on a company's internal capabilities and external environment. Here’s a look at Medistep Healthcare's strengths, weaknesses, opportunities, and threats:
Strengths (S)
| Weaknesses (W)
|
Opportunities (O)
| Threats (T)
|
■ Connecting with Medistep: Contact & Key Facilitators
For any queries related to the company or the IPO process, here are the essential contacts:
Medistep Healthcare Ltd. Contact Details:
Address: 05, S. No-245/B, Plot-19, T.P.S. 56, Free Way Trade Center, Nr.A-One Hotel N.H.-8, Narol Gam, Narol Daskroi, Ahmedabad, Gujarat, 382405
Phone: +91 87808 46963
Email: Info@medistephc.com
Website: medistephc.com
IPO Registrar:
The registrar is responsible for managing the IPO application and allotment process efficiently.
Cameo Corporate Services Limited
Phone: +91-44-28460390
Email: ipo@cameoindia.com
Lead Manager:
The lead manager guides the company through the IPO process, ensuring compliance and market readiness.
Fast Track Finsec Pvt Ltd