KRM Ayurveda IPO Opens Jan 19: ₹77 Cr Raise, ₹135 Price Cap

HEALTHCAREBIOTECH
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AuthorAarav Shah|Published at:
KRM Ayurveda IPO Opens Jan 19: ₹77 Cr Raise, ₹135 Price Cap
Overview

KRM Ayurveda is launching its SME IPO on January 19, aiming to raise ₹77.49 crore. The issue, priced between ₹128-₹135 per share, closes on January 21. Funds will support facility development, working capital, and debt reduction. Investors must consider risks including leased premises, revenue concentration, high employee attrition, legal proceedings, and payer dependence.

KRM Ayurveda is set to launch its Initial Public Offering (IPO) on the National Stock Exchange's SME platform, seeking to raise ₹77.49 crore. The subscription window opens on January 19 and will close on January 21, with share allotment expected by January 27.

Company Operations and Objectives

The company operates a network of hospitals and clinics across India and offers telemedicine consulting internationally. Incorporated in 2019, KRM Ayurveda focuses on manufacturing Ayurvedic products, herbal remedies, and wellness items, currently managing six hospitals and five clinics.

The IPO proceeds are earmarked for strategic expansion and financial management. Approximately ₹13.67 crore will be allocated to capital expenditure for developing telemedicine facilities. A significant portion, ₹22.90 crore, will bolster working capital requirements. The company also plans to utilize ₹12.50 crore for repaying outstanding borrowings.

Investment Details and Risks

KRM Ayurveda has set its IPO price band between ₹128 and ₹135 per equity share. For retail investors, the minimum application requires two lots, each containing 1,000 shares, amounting to ₹2.70 lakh. High Net-worth Individuals (HNI) must apply for at least three lots, totalling 3,000 shares and costing ₹4.05 lakh.

Investors should carefully evaluate several key risks. The company's registered office and major hospital premises are leased, introducing uncertainty regarding renewal terms and potential relocation costs. Revenue is heavily concentrated, with Delhi and Haryana accounting for 68.44% of income as of September 30, 2025. Furthermore, KRM Ayurveda reported a high employee attrition rate of 78.47% in FY24, alongside outstanding legal proceedings involving medical negligence claims and consumer complaints. Dependence on third-party payers and government health schemes also presents financial vulnerability.

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