Medistep Healthcare Limited, a relatively young pharmaceutical and healthcare products manufacturer, has opened its Initial Public Offering (IPO) for public subscription from 8th August to 12th August 2025. With a book-building issue size of ₹16.10 crore, this SME IPO will see a fresh issue of 37.44 lakh equity shares at a fixed price of ₹43 per share. The company’s shares are set to be listed on the NSE SME platform on 18th August 2025, making it one of the most watched small-cap listings in the healthcare sector.
Investors are tracking the IPO closely, given the company’s strong recent financial growth and a promising grey market premium (GMP), suggesting good listing day sentiment. Let’s explore the details in-depth to help prospective investors evaluate the IPO.
IPO Details: Key Dates and Financial Structure
| Particulars | Details |
|---|---|
| IPO Opening Date | 8th August 2025 |
| IPO Closing Date | 12th August 2025 |
| Allotment Date | 13th August 2025 |
| Refund Initiation | 14th August 2025 |
| Listing Date | 18th August 2025 |
| Issue Price | ₹43 per share |
| Face Value | ₹10 per share |
| Market Lot Size | 3,000 shares |
| Total Shares Offered | 37,44,000 |
| Issue Size | ₹16.10 crore |
| IPO Type | Bookbuilding |
| Registrar | Cameo Corporate Services Ltd |
| Listing Platform | NSE SME |
The issue is 100% a fresh equity offering, with no offer-for-sale component. The capital raised will go towards production expansion, working capital needs, technology advancement, and repayment of certain borrowings.
Share Reservation Pattern
The IPO is divided into three investor categories:
| Investor Category | Shares Offered | % of Issue |
|---|---|---|
| Market Maker | 1,89,000 | 5.05% |
| Retail Individual | 17,76,000 | 47.44% |
| HNI / NII | 17,79,000 | 47.52% |
| Total | 37,44,000 | 100% |
This evenly split allocation between retail and HNI segments shows the company’s intent to attract broad-based participation.
Grey Market Premium (GMP) Trend
The GMP for Medistep Healthcare IPO is currently stable at ₹12 per share. With the issue price set at ₹43, the expected listing price is around ₹55, implying an estimated listing gain of nearly 28%.
| Date | IPO Price | GMP | Estimated Listing Price | Estimated Gain |
|---|---|---|---|---|
| 6-Aug-2025 | ₹43.00 | ₹12 | ₹55.00 | 27.91% |
| 5-Aug-2025 | ₹43.00 | ₹12 | ₹55.00 | 27.91% |
This consistent GMP indicates steady investor demand in the unofficial market and reflects a positive sentiment for the listing.
Financial Performance: Rapid Growth Trajectory
Medistep Healthcare has shown impressive growth over the past three years, both in terms of revenue and profitability. Here’s a summary of the company’s financial performance:
| Financial Metrics | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | ₹27.44 | ₹31.63 | ₹49.66 |
| Profit After Tax (₹ Cr) | ₹0.92 | ₹2.91 | ₹4.14 |
| EBITDA (₹ Cr) | ₹1.34 | ₹3.96 | ₹5.60 |
| Net Worth (₹ Cr) | ₹1.07 | ₹11.69 | ₹16.83 |
| Total Assets (₹ Cr) | ₹14.66 | ₹14.96 | ₹22.99 |
| Borrowings (₹ Cr) | ₹0.53 | ₹0.33 | ₹0.64 |
The company reported 57% revenue growth and 42% PAT growth in FY25 alone, indicating robust demand and operational efficiency. The company is generating returns with minimal debt, which is a positive signal for future scalability.
Technical Metrics and Valuation
| Metric | Value (Pre-IPO) | Value (Post-IPO) |
|---|---|---|
| PE Ratio | 10.86 | 14.74 |
| EPS (₹) | 3.96 | 2.92 |
| Return on Net Worth (RoNW) | 29.06% | N/A |
| Return on Capital Employed | 38.91% | N/A |
| EBITDA Margin | 11.27% | N/A |
| Price-to-Book Value | 2.67 | N/A |
| Market Capitalization | ₹61.10 crore | N/A |
The PE ratio of 10.86 (pre-IPO) is relatively low compared to peers, suggesting the issue is fairly priced. A high RoNW of 29.06% also points toward efficient capital deployment.
Peer Comparison
| Company Name | EPS | PE Ratio | RoNW | Revenue (₹ Cr) |
|---|---|---|---|---|
| Medistep Healthcare | 3.96 | 10.86 | 29.06% | ₹49.66 |
| Fabino Enterprises | 0.29 | 89.86 | 3.12% | ₹21.39 |
| Achyut Healthcare | 0.02 | 200.50 | 1.77% | ₹6.86 |
Compared to its SME peers, Medistep shows stronger earnings, better return ratios, and more scalable revenues.
Promoter Holding
| Shareholding | Pre-Issue (%) | Post-Issue (%) |
|---|---|---|
| Promoters | 93.62% | 68.96% |
Promoters will dilute 24.66% of their holdings post-issue. Retention of nearly 69% stake shows continued promoter confidence in the company.
Objectives of the IPO
The IPO proceeds of ₹16.10 crore will be used for:
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Funding capital expenditure for plant and machinery.
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Enhancing production capacity and facility expansion.
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Repayment/prepayment of certain loans.
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General corporate purposes and operational efficiency improvements.
Products and Business Model
Medistep Healthcare operates in both manufacturing and trading of healthcare and pharmaceutical products. Its offerings include:
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Sanitary products (e.g., DRYSTEP sanitary pads)
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Energy supplements (e.g., VITASTEP Z energy powder)
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Pharmaceutical and nutraceutical products
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Personal and surgical care items
With a strong focus on product diversity, quality control, and cost-effective manufacturing, the company aims to meet the rising healthcare needs in India’s tier 2 and 3 cities.
Pros of Investing in Medistep Healthcare IPO
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Strong Financial Growth: Consistent YoY growth in revenue and PAT.
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Diversified Product Portfolio: Spanning sanitary, pharma, personal care, and wellness.
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Efficient Capital Use: High RoNW, low debt.
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Fair Valuation: Lower PE ratio than industry peers.
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Positive Market Sentiment: Stable GMP and bullish outlook from small-cap investors.
Risks and Challenges
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Stiff Competition: Faces strong rivalry from established pharma players.
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Regulatory Risks: Compliance with healthcare and drug regulations can be demanding.
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Limited Brand Reach: Relatively new player with limited brand recall.
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Dependency on Funding: Growth dependent on external funding for now.
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SME Listing Volatility: Shares on SME platforms may be more volatile post-listing.
IPO Bidding Requirements
| Investor Category | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail Min/Max | 2 | 6,000 | ₹2,58,000 |
| S-HNI Min | 3 | 8,000 | ₹3,87,000 |
The lot size is 3,000 shares, and retail investors are allowed to apply for 2 lots only.
How to Apply
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Research GMP, price band, and issue details.
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Login to your demat/IPO platform (Univest or any broker).
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Choose “Medistep Healthcare IPO” from the live IPO list.
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Apply for 6,000 shares (2 lots) worth ₹2.58 lakh.
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Approve mandate via UPI or bank.
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Await allotment confirmation on 13 August 2025.
How to Check IPO Allotment Status
You can check the allotment status through:
1. NSE Portal
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Go to the NSE website
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Choose IPO allotment section
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Enter PAN or application number
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View your allotment result
2. Registrar’s Portal (Cameo)
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Visit Cameo Corporate Services’ IPO section
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Select “Medistep Healthcare”
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Enter required details (PAN/application number)
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Submit and check status
Final Thoughts: Should You Invest?
The Medistep Healthcare IPO offers a mix of value, growth, and sentiment. The financial performance is strong, valuations are reasonable, GMP is encouraging, and management appears experienced. While risks like regulation and competition exist, the upside potential—especially for SME investors—seems attractive.
Investors with a medium-risk appetite and a desire to participate in India’s expanding healthcare and wellness market may consider applying for this IPO. However, thorough analysis of allotment trends and subscription status during the IPO window is essential for decision-making.
