With the outbreak of the Covid-19 virus in 2020, people have become much more health-conscious for themselves as well as others and this trend hasn’t gone down even in the year 2022. The government has also focused on the well-being of the citizens all this while integrating the efforts of the health ministry and the departments under its work. With greater acceptance of yoga by the whole world, the AYUSH department of the health ministry has put consistent efforts to promote Ayurveda and its benefits.
All this while, many health service providers especially rendering Ayurvedic services have grown exponentially. One such service provider is Madhavbaug which was incorporated in 1999 as a private limited company and later transformed to a public company in 2021.
The company primarily deals in providing resolution to various lifestyle diseases like Diabetes, Cardiac Diseases, Hypertension, and Knee-related issues that are more prominent amongst the older population. With its 20+ years of serving, the service provider has established more than 274 clinics across India including major states like Maharashtra, Delhi, Uttar Pradesh which accounts for a major chunk of the country’s population. The company management has now decided to introduce its Initial Public Offering in February 2022.
Madhavbaug IPO Details
On 25th January 2022, Madhavbaug has filed its DRHP with SEBI and as per the DRHP, the Madhavbaug IPO will be live for investments from the 10th of February to the 15th of February 2022. A detailed synopsis of the Madhavbaug IPO is given in the table below:
|Offer Opening Date||10th February 2022|
|Offer Closing Date||15th February 2022|
|Issue Type||Fresh Issue|
|Issue Size (Amount)||₹ 20.23 Cr|
|Issue Size (Shares)||2,71,200 Equity Shares|
|Face Value||₹ 10 per Equity Share|
|Price Band||₹ 73 per Equity Share|
|Lot Size||1600 Equity Shares|
|Listing Exchanges||NSE SME|
The DRHP filed by Madhavbaug discloses that the issue size of the Madhavbaug IPO would be 2,71,200 equity shares worth ₹ 20.23 at a price of ₹73 per equity share. For any investor who is looking forward to investing in the Madhavbaug IPO, the minimum lot size is 1600 equity shares amounting to ₹ 1,16,800.
Also check: IPO GMP
Objects of Issue
The objects of the issue as per the DRHP of Madhavbaug IPO is stated as follows:
- A total of ₹ 16 Cr is proposed to be utilized for the Marketing and Brand promotion of the company;
- A sum of around ₹ 3.7 Cr is proposed to be utilized for general corporate purposes of the company;
- Lastly, a sum of ₹ 50 lakhs would be used for the issue-related expenses.
Promoters and their shareholding
Madhavbaug has a single individual promoter Dr. Rohit Madhav Sane and has a current holding of about 90% in the company. With the proposed IPO the shareholding of Dr. Rohit will reduce to about 66% in the company.
As per the financial reports issued by the company, the revenue of the company has shown a rise of about 45% from ₹522 Cr in FY20 to ₹752 Cr in FY21. Following the same trend in the profits, the company converted itself from a loss-making company to a profit-making company with a rise from a loss of ₹5.5 Cr in FY20 to a profit of ₹15.5 Cr in FY21.
Registrar of Madhavbaug IPO
Bigshare Services Private Limited has been selected as the Registrar of the Madhavbaug IPO by the company management.
BIGSHARE SERVICES PRIVATE LIMITED
1st Floor, Bharat Tin Works Building,
Opp. Vasant Oasis, Makwana Road,
Marol, Andheri East, Mumbai – 400 059, Maharashtra, India
Tel. No.: +91 22 6263 8200
Lead Manager of Madhavbaug IPO
First Overseas Capital Limited has been appointed as the lead manager for the Madhavbaug IPO by the management.
FIRST OVERSEAS CAPITAL LIMITED
1-2 Bhupen Chambers,
Dalal Street, Fountain,
Mumbai – 400 001, Maharashtra, India.
Tel No.: +91 22 4050 9999
Lastly, we would like to say that with a rise in the requirement of healthcare in India and with a shift towards the adoption of natural and Ayurvedic treatments, Madhavbaug is expected to flourish in the coming years in the Ayurvedic Healthcare Sector. If an investor is targeting to invest in the Madhavbaug IPO, he must fully study the financials of the company along with its growth prospects in the future and then decide to invest in it. We recommend thorough and complete research and analysis by the prospective investors as the minimum investment amount is more than usual. Until then, Happy Investing!