Another company’s IPO opens from today, price band ₹ 135, strong rise in gray market

The IPO of KRM Ayurveda has opened for subscription today on Wednesday and there is a lot of discussion among investors regarding this issue in the SME segment. This IPO of around ₹77.49 crore is carrying a premium of around 16% (Rs 21 premium) in the gray market, from which listing gains are expected. This entire IPO is a fresh issue, in which the company is issuing 0.57 crore new equity shares. The issue will close on Friday, January 23 and the company’s shares are likely to be listed on the NSE SME platform on January 29.

What is the price band?

For this IPO, the company has fixed the price band at ₹128 to ₹135 per share. At the upper end of the price band, KRM Ayurveda’s pre-IPO market cap works out to be around ₹287 crore. The minimum bid for retail investors has been kept at two lots i.e. 2,000 shares. Accordingly, if an investor applies for two lots at the upper price band of ₹ 135, he will have to invest around ₹ 2.70 lakh. Being an SME IPO, the investment amount is slightly higher, hence this issue is attracting more limited but knowledgeable investors.

company business

KRM Ayurveda is a healthcare company, which runs a network of Ayurveda based hospitals and clinics. The company specifically focuses on the treatment of kidney, liver, diabetes, fatty liver, arthritis and other chronic and lifestyle diseases. Apart from this, the company also provides Panchakarma therapy, post-operative care and wellness programs. The company also runs different special clinics for orthopedic, skin-hair, women’s health and elderly care. Established in 2019, KRM Ayurveda is currently operating 6 hospitals and 5 clinics in different cities of the country. Along with this, the company has also started the facility of telemedicine and online consultation to reach out to patients living abroad. Patients can consult doctors online and order Ayurvedic medicines. The company sells its own Ayurvedic products as well as other approved herbal and wellness products. Given the increasing interest in Ayurveda and wellness sector, KRM Ayurveda’s IPO is considered an interesting opportunity for SME investors.