KRM Ayurveda IPO Subscribed 74.43 Times on Final Day

Introduction to KRM Ayurveda's Public Offering

The initial public offering (IPO) of KRM Ayurveda Limited, a chain of Ayurvedic hospitals and clinics, concluded on January 23, 2026, with an overwhelming response from investors. The public issue was subscribed 74.43 times on the final day of bidding, signaling strong market confidence in the company's growth prospects. The company aimed to raise Rs 77.49 crore through the fresh issue of 57.4 lakh equity shares. The strong demand was evident as investors applied for 26.97 crore equity shares against an offer size of 41.98 lakh shares, excluding the anchor portion.

Detailed Subscription Breakdown

Investor interest was robust across all categories. The portion reserved for Non-Institutional Investors (NII) saw the highest demand, with a subscription of 136.10 times their allotted quota. Qualified Institutional Buyers (QIBs) also showed significant interest, subscribing 63.31 times their portion. The retail individual investor (RII) category was subscribed 52.63 times, reflecting broad-based participation. In total, the IPO received 65,806 applications, underscoring the widespread investor appetite for the issue.

IPO Structure and Key Dates

The IPO was offered within a price band of Rs 128 to Rs 135 per equity share. Ahead of the public issue, KRM Ayurveda successfully raised Rs 20.81 crore from anchor investors on January 20, allotting 15.42 lakh shares at the upper price band of Rs 135 per share. Key anchor investors included PINE OAK GLOBAL FUND, MAGNIFICA GLOBAL OPPORTUNITIES, and VIKASA INDIA EIF I FUND. The timeline for post-issue events is set, with the finalization of share allotment scheduled for January 27, 2026. The shares are expected to be listed on the NSE Emerge platform on January 29, 2026.

Company Overview and Business Model

Incorporated in 2019, KRM Ayurveda Limited operates an integrated healthcare network focused on Ayurvedic treatments. The company runs six hospitals and five clinics, providing services that include consultations, hospital-based treatments, and telemedicine. It also manufactures a range of Ayurvedic medicines, herbal supplements, and wellness products under its brand. As of August 2025, the company employed 429 staff members across its medical and administrative departments, catering to a growing demand for alternative and natural healthcare solutions.

Financial Performance Highlights

KRM Ayurveda has demonstrated a notable financial performance. For the fiscal year ending March 31, 2025, the company reported a total income of Rs 76.95 crore and a profit after tax (PAT) of Rs 12.10 crore. This marked a significant increase from the previous fiscal year, where the PAT stood at Rs 3.41 crore on an income of Rs 67.57 crore. The company's net worth has also grown steadily, reaching Rs 23.88 crore in March 2025. Key performance indicators such as Return on Equity (ROE) and Return on Capital Employed (ROCE) were reported at 67.86% and 43.33% respectively for FY25, indicating efficient use of capital.

Utilization of IPO Proceeds

The company has outlined a clear plan for the utilization of the net proceeds from the IPO. A significant portion will be allocated towards capital expenditure for the construction and development of telemedicine facilities (Rs 13.67 crore). Funds will also be used for purchasing CRM software and hardware infrastructure (Rs 1.42 crore), human resources (Rs 5.44 crore), and repayment of certain loans (Rs 12.50 crore). Additionally, Rs 18.00 crore is earmarked for working capital requirements, with the remaining amount allocated for general corporate purposes.

Market Context and Other IPOs

While KRM Ayurveda's IPO saw massive interest, other public issues in the market had a more moderate response. The IPO of Shayona Engineering, a specialist in turnkey project machinery, was subscribed 1.34 times. Meanwhile, the initial share sale of Hannah Joseph Hospital, a Tamil Nadu-based healthcare provider, was subscribed 55 percent during its bidding period. The exceptional demand for KRM Ayurveda's issue highlights strong investor interest in the Ayurvedic and wellness sector.

Conclusion and Future Outlook

The successful closure of the KRM Ayurveda IPO with a 74.43 times subscription reflects strong investor confidence in its business model and the high-growth potential of the Ayurvedic healthcare industry. With the funds raised, the company is positioned to expand its telemedicine services, strengthen its infrastructure, and reduce debt. Investors will now await the share allotment and the company's stock market debut on the NSE Emerge platform, which is anticipated on January 29, 2026.