At a Glance
Aakaar Medical Technologies Ltd is launching a ₹27 crore SME IPO between June 20–24, 2025, with a price band of ₹68–₹72 per share. This aesthetic-device-and-dermatology supplier has clocked 110% PAT growth in FY25, just in time for its IPO glow-up. But beneath the radiant skin lies some financial botox—let’s peel back the layers.
🧪 1. What Does Aakaar Actually Do?
- Think fillers, lasers, hair serums, and every weapon in a skin doc’s anti-aging arsenal. Aakaar doesn’t run clinics but supplies tools to the ones who do.
- Their clientele? Dermatologists, plastic surgeons, aesthetic physicians. Basically, your dermatologist’s dealer.
- It’s a product mix of own brands + imports from Korea, Spain, Italy, Austria.
📦 Product Portfolio Includes:
| Segment | Products |
|---|---|
| Skincare | Medifacials, professional serums, creams |
| Haircare | Anti-hair loss tablets, growth serums |
| Aesthetic Devices | Hair transplant machines, urinary incontinence kits, tattoo removers |
| Big Guns | Laser Hair Removal & Pigmentation Reversal Devices |
Basically, they’re Nykaa meets B2B—but with lasers instead of lipsticks.
💰 2. IPO Structure: ₹27 Cr for Wrinkles & Working Capital
| Details | Info |
|---|---|
| IPO Size | ₹27 crore (100% fresh issue) |
| Shares Offered | 37.5 lakh |
| Lot Size | 1,600 shares |
| Retail Investment (Min) | ₹1,15,200 |
| Listing Exchange | NSE SME |
| Lead Manager | Indorient Financial |
| Market Maker | Alacrity Securities |
🎯 Use of Funds:
- ₹20.35 Cr → Working Capital (they need to restock Botox, apparently)
- Rest → General Corporate Purposes (aka party & PR?)
📊 3. Financials: Glow-Up or Just Good Lighting?
| ₹ in Crores | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 32.88 | 46.27 | 61.76 |
| PAT | 2.15 | 2.87 | 6.04 |
| Net Worth | 9.66 | 12.53 | 23.20 |
| Borrowings | 5.87 | 15.06 | 22.74 |
📈 Margins & Ratios:
- EBITDA Margin: 15.81%
- PAT Margin: 9.81%
- RoNW: 33.81%
- ROCE: 21.02%
- Debt/Equity: 0.98
📌 Red Flag: Debt has quadrupled in 2 years. From ₹5.87 Cr to ₹22.74 Cr. Almost like they took a loan to look richer.
🧮 4. Valuation: Face Value vs Fair Value
Let’s do the math (no contouring):
- Post-IPO EPS: ₹4.26
- P/E at upper band (₹72): 16.9x
- Book Value: ₹13.76 → P/B = 5.23x
- Market Cap: ₹102.04 Cr
📉 Listed SME peers (like Synoptics, Concord Biotech) trade at 12–15x earnings. Aakaar’s asking for premium pricing, despite no exports, niche audience, and SME volatility.
🧾 EduFair Value Estimate: ₹55–₹65
- At 15x FY25 EPS: ₹64
- At 4x Book Value: ₹55
- Fair Value Band = ₹55–₹65
- IPO asking price? ₹72.
🧠 Verdict: If Aakaar was a facial, this would be the “deluxe glow package with hidden charges.”
📦 5. Promoters, People & Paper Trail
- 🧔♂️ Promoters: Dilip R. Meswani & Bindi D. Meswani
- Pre-issue holding: 91.11%
- Post-issue holding: Not explicitly disclosed (should drop to ~73%)
👥 Team of 90 trained sales & service staff across India—good reach, but limited info on distribution efficiency or after-sales service in RHP.
📊 6. Subscription Status So Far
| Category | Subscription (Day 2) |
|---|---|
| Retail | 0.89x |
| HNI/NII | 0.66x |
| QIB | 0.33x |
| Anchor | Fully Allotted (₹7.68 Cr) |
🪞Reality Check: Despite anchor interest, QIBs and NIIs seem cold. Retail is warming up but still under 1x.
🧠 7. EduInvesting Take: Skin Deep or Scalpel-Deep Risk?
👎 What we don’t like:
- 🚩 Sudden PAT jump in FY25 (+110%) — classic IPO glow-up trick
- 🚩 Debt rising faster than collagen fillers
- 🚩 Premium valuation in a niche B2B aesthetic play
- 🚩 SME listing + ₹1.15L min bid = not for the faint of heart
👍 What we do like:
- ✔️ Solid ROCE and RoNW
- ✔️ Niche space with growing demand (cosmetic dermatology is booming)
- ✔️ Pan-India presence in medical sales (rare for SMEs)
Final Botox Shot
If you have ₹1.15L to burn, already have good skin, and don’t mind holding a low-liquidity SME for 2–3 years, you may consider bidding. But don’t expect this to be the next Nykaa.
This might just be a filler, not a facelift.
🧾 Tags: Aakaar Medical IPO, SME IPO June 2025, Aesthetic Device Company IPO, Dermatology Products India, SME IPO Review, Indorient IPOs, EduInvesting IPO Review
✍️ Written by Prashant | 📅 June 23, 2025
