Medistep Healthcare IPO on 8 August

August 6, 2025 admin Leave a reply Post Comment

About Medistep Healthcare

Who are the Promoters of Medistep Healthcare IPO?

What are the Objects of Medistep Healthcare IPO?

The Company proposes to utilize the Net Proceeds from Issue towards funding the following objects

+Funding of capital expenditure towards purchase of plant and machineries for expansion at the existing manufacturing facility Rs. 0.51 Cr.

+Working Capital requirement Rs. 12.34 Cr.

+General Corporate purposes

Chanakya’s IPO Review – Medistep Healthcare by Paresh Gordhandas, CA & Research Analyst

Medistep Healthcare Limited, based in Ahmedabad, is launching a fixed‑price SME IPO worth Rs.16.10 crores, comprising a fresh issue of 37.44 lakh shares at ₹43 per share. The offer opens on August 8, 2025, and closes on August 12, 2025; allotment is expected on August 13, with listing on NSE EMERGE slated for August 18, 2025 

• Revenue grew ~14% from Rs.27.74 cr to Rs.31.63 cr, while PAT surged by over 3x to Rs.2.91 cr, boosting PAT margin from ~3% to ~9%

• Q1 FY25 annualized suggests continued healthy margins and operational leverage.

✅ Why Investors May Consider Applying

1. High Growth in Profitability
   After a modest PAT of Rs.0.92 cr in FY23, the leap to Rs.2.91 cr in FY24 signals rapid business scaling and improved margins (~9%) 

2. Strong Return Metrics
   With an RoNW over 28%, RoCE at 69%, and an EPS of Rs.19.96, the business demonstrates efficient capital use and robust returns

3. Low Leverage and Asset Light Model
   Debt-to-equity ratio of just ~0.03 ensures financial stability and flexibility. The company plans to use IPO capital towards expansion of manufacturing capacity, working capital, and general corporate purposes

4. Diversified Product Portfolio
   Medistep serves essential segments including sanitary pads, energy powders, nutraceuticals, pharmaceuticals, intimate care, and surgical products, offering wide exposure across health and wellness categories 

5. Long-Term Growth Potential
   Given focus on healthcare essentials and early-stage profitability, the IPO may suit long-term investors looking to benefit from business scaling and improving margins—especially since current valuations likely remain modest given SME pricing 

⚠️ Risks & Considerations

• Modest Absolute Scale
  Even after growth, revenues and profits Rs.30 cr revenue, Rs.3 cr PAT) are small in the broader healthcare universe—returns depend heavily on upward business trajectory.

• SME-Specific Risks
  As an SME IPO, liquidity post-listing may be limited and volatility higher compared to mainboard listings.

• Sectoral Competition & Execution Risk
  Healthcare and FMCG-adjacent segments are competitive; consistency in quality, supply chain, and regulatory compliance is pivotal.

🏁 Final Verdict – Chanakya Insight

The Medistep Healthcare IPO offers early access to a fast-growing healthcare and hygiene business showing strong profit momentum, exceptional return ratios, and a diversified product portfolio. With low leverage, efficient RoE/RoCE, and clear expansion objectives, the IPO may appeal to long-term oriented investors seeking exposure to scalable health-driven SMEs.

If you look for steady value and growth potential within a niche healthcare space, this IPO is a calculated risk worth considering—provided you’re comfortable with SME volatility and smaller earnings scale

Quicklinks

• Sahifund
• BigGaddi
• Research Reports
• Magajmari

Medistep Healthcare IPO GMP

Medistep Healthcare IPO review