Medistep Healthcare IPO GMP: Hey everyone, if you’re into the stock market scene, you’ve probably heard the buzz around upcoming IPOs. Today, let’s chat about Medistep Healthcare’s IPO. As an online news portal, we’re always keeping tabs on these opportunities, and this one seems like a solid entry in the SME space. Medistep Healthcare, a young Ahmedabad-based company, is making waves with its public offering. Incorporated just in June 2023, they’re focused on pharmaceuticals and wellness products. Their IPO opened on August 8, 2025, and it’s already drawing a lot of attention. In this post, I’ll break it down simply, covering the GMP, subscription, and more. Stick around for some pros and cons too.
Table of Contents
Introduction to Medistep Healthcare and Its IPO
Medistep Healthcare Limited is a fresh face in the pharma world, but they’re building on experience from a proprietorship they acquired. They manufacture sanitary pads under the brand DryStep and energy powder called VitaStep Z, while also trading a bunch of meds, nutraceuticals, and medical devices. Most of their business is in Gujarat, with a tiny slice from Rajasthan. The company aims to hit Rs 250 crore in turnover by FY 2030 – ambitious, right?
The IPO is a fresh issue of 37.44 lakh equity shares, totaling around Rs 16.10 crore at the price of Rs 43 per share. It’s listed on the NSE Emerge platform for SMEs. The funds? They’ll go toward buying machinery (about Rs 50.75 lakhs), working capital (Rs 1,234.17 lakhs), and general corporate stuff. No offer for sale here – it’s all about growth.
- Key Dates: Opened August 8, closes August 12, allotment on August 13, listing around August 18.
- Lot Size: 3,000 shares, so minimum investment is Rs 1,29,000.
- Objectives: Expand manufacturing and boost operations.
From what I’ve seen, this IPO is for investors who like betting on small-cap growth stories in healthcare.
Understanding GMP and Current Trends for Medistep IPO
Grey Market Premium, or GMP, is that unofficial indicator of how hot an IPO is before it lists. It’s basically the premium people are willing to pay in the grey market over the issue price. For Medistep Healthcare, the GMP today (August 11, 2025) is sitting at Rs 10. That means shares might list at around Rs 53, giving a potential 23% gain right off the bat.
But hey, GMP isn’t foolproof – it’s volatile and based on hype. A few days ago, it was higher at Rs 20, but it’s cooled down. Some reports even peg it at Rs 17, hinting at 40% returns. Keep an eye on it as listing nears; market sentiment can shift fast with broader economic vibes.
Subscription Status Update
As of today, the IPO is oversubscribed big time – about 52 times on the second day of bidding, with strong demand from retail and non-institutional investors. By early afternoon on August 11, it hit 52.15x overall. Some sources say it’s even higher at 65x now. That’s impressive for an SME IPO!
- Retail Portion: Booked over 60x.
- NII Portion: Around 40x.
- QIB Portion: Still picking up, but overall demand is robust.
This high subscription suggests investor confidence, but remember, allotment might be lottery-like for retail folks.
Key Financial Highlights
Medistep’s numbers show promise, though they’re a new entity. For FY 2023-24, revenue from operations was Rs 3,907.19 lakhs, with a profit after tax of Rs 291.35 lakhs. EBITDA margin is decent at 12.51%. In the quarter ended June 30, 2024, revenue hit Rs 1,125.07 lakhs, PAT Rs 102.16 lakhs.
- Revenue Split: Trading makes up 70.78%, manufacturing 29.22%.
- Net Worth: Rs 1,371.21 lakhs as of June 2024.
- ROE: 8.04% in Q1 FY25, but 44.44% in FY24 – shows growth potential.
- Debt: Low, with total borrowings at Rs 44.06 lakhs.
They’re cash flow negative in operations lately due to expansion, but that’s common for growing firms.
Pros, Cons, and Investment Advice
Should you jump in? Let’s weigh it.
Pros:
- Strong subscription and GMP indicate good listing pop.
- Healthcare sector is booming, especially wellness products.
- Low issue size means potential for quick gains in SMEs.
Cons:
- Young company (just over a year old), so higher risks like dependency on Gujarat market.
- No long-term contracts; top 10 customers are 98% of revenue – that’s concentrated.
- Seasonal sales for some products could hurt consistency.
If you’re a risk-taker with a long-term view, apply for listing gains or hold if you believe in pharma growth. But do your due diligence – GMP isn’t a guarantee, and markets are unpredictable. Consult a financial advisor, folks!
There you have it – a straightforward take on Medistep Healthcare’s IPO. What’s your thoughts? Drop a comment below.