KRM Ayurveda IPO Makes Strong Debut with 27.48% Premium, Lists at ₹172.10 Against Stellar 74.27x Subscription

KRM Ayurveda Ltd, a company incorporated on September 3, 2019 operating network of hospitals and clinics across multiple cities in India with presence abroad through telemedicine consulting and sales manufacturing Ayurvedic products, herbal and botanical remedies, medicines, supplements and skin care/wellness related items, as of December 31, 2025, made a strong debut on NSE SME on Thursday, January 29, 2026. After closing its IPO bidding between January 21-23, 2026, the company commenced trading with a robust premium of 27.48% opening at ₹172.10 and touched high of ₹180.70 (up 33.85% from issue price).

KRM Ayurveda Listing Details

KRM Ayurveda launched its IPO at ₹135 per share with minimum investment of 2,000 shares costing ₹2,70,000. The IPO received exceptional response with subscription of 74.27 times - individual investors at 54.21 times, NII at 135.37 times (bNII at 166.53 times, sNII at 73.04 times), QIB at 63.31 times, total applications of 65,806.

First-Day Trading Performance

Listing Price: KRM Ayurveda opened at ₹172.10 representing premium of 27.48% from issue price of ₹135.00, touched high of ₹180.70 (up 33.85%) before trading around ₹166.00 (up 22.96%), with VWAP at ₹172.33, reflecting positive market sentiment with strong buying interest delivering healthy gains for IPO investors with traded volume of 26.86 lakh shares, turnover of ₹46.29 crore, and market capitalisation of ₹355.06 crore against pre-IPO market cap of ₹287.02 crore.

Growth Drivers and Challenges

Growth Drivers:

Integrated Healthcare Network: Operating 6 hospitals and 5 clinics across India with comprehensive infrastructure including Panchakarma treatment units, herbal pharmacy, Ayurvedic diet kitchen, yoga and meditation halls providing end-to-end Ayurvedic healthcare solutions.

Diversified Services Portfolio: Wide range of services including in-patient and out-patient care for chronic diseases and lifestyle disorders, Panchakarma therapies for detoxification, specialized clinics for orthopedic, skin, women's wellness, geriatric care, wellness packages, and medicinal sales.

Telemedicine Expansion: International presence through telemedicine consulting and sales enabling scalable growth beyond physical hospital network with upcoming telemedicine operational facilities.

Strong Financial Metrics: PAT margin of 16.83%, EBITDA margin of 26.54%, ROE of 21.84%, improving debt-to-equity ratio from 1.31 to 0.69, centralized GMP-certified production ensuring quality and efficacy.

Challenges:

Inconsistent Performance: Company marked inconsistency in top and bottom lines from FY23 to FY25 with revenue declining from ₹89.38 crore in FY23 to ₹76.95 crore in FY25.

Leverage Position: Total borrowings of ₹25.07 crore against net worth of ₹36.13 crore, significant promoter dilution from 92.16% to 67.28% post-IPO

Small Scale Operations: SME listing with limited operational scale and longer gestation for mainboard migration in competitive Ayurveda healthcare segment.

Utilisation of IPO Proceeds

Working Capital: ₹22.90 crore for funding working capital requirements representing largest allocation supporting hospital and clinic operations.

Telemedicine Facilities: ₹13.67 crore for capital expenditure for construction and development of telemedicine operational facilities expanding digital healthcare reach.

Loan Repayment: ₹12.50 crore for repayment/prepayment of loans strengthening balance sheet.

Human Resources: ₹5.44 crore for human resources development supporting expansion of medical and operational staff.

CRM Infrastructure: ₹1.42 crore for purchase of CRM software and hardware infrastructure enhancing patient management capabilities.

General Corporate Purposes: Remaining amount for general corporate purposes.

Financial Performance

Revenue: ₹48.65 crore for H1 FY26, ₹76.95 crore for FY25, versus ₹67.57 crore in FY24 and ₹89.38 crore in FY23.

Net Profit: ₹8.14 crore in H1 FY26, ₹12.10 crore in FY25, significant improvement from ₹3.41 crore in FY24, demonstrating strong profitability with post-IPO EPS of ₹5.69 and P/E of 23.73x.