G. Surgiwear IPO

Incorporated in 1990, G. Surgiwear Limited is a leading Indian manufacturer of a wide range of surgical products and medical implantable devices. With over three decades of experience, the company’s diversified portfolio includes disposable surgical drapes and dressings, hydrocephalus shunts, orthopaedic implants, bone grafting products, and cranial devices. Operating a DSIR-recognized R&D centre and a WHO-GMP certified manufacturing facility in Shahjahanpur, UP, it serves a vast domestic network and exports to over 40 countries, demonstrating strong regulatory compliance and operational excellence.

G. Surgiwear Limited IPO Overview

The G. Surgiwear Limited IPO is a book-built issue comprising a fresh issue of equity shares aggregating up to ₹370 crores and an offer for sale (OFS) of up to ₹370 crores by the promoter and selling shareholders. The equity shares are proposed to be listed on both the BSE and NSE. Motilal Oswal Investment Advisors Ltd. is the book running lead manager, and Bigshare Services Pvt. Ltd. is the registrar. Key details such as IPO dates, price band, and lot size are yet to be announced. Pre-IPO, the promoters hold 92.96% of the company. The net proceeds from the fresh issue are earmarked for capital expenditure (machinery purchase), repayment of borrowings, and general corporate purposes.

G. Surgiwear Limited Upcoming IPO Details

Category	Details
Issue Type	Book Built Issue IPO
Total Issue Size	[.] shares (agg. up to ₹740 Cr)
Fresh Issue	[.] shares (agg. up to ₹370 Cr)
Offer for Sale (OFS)	[.] shares of ₹10 (agg. up to ₹370 Cr)
IPO Dates	TBA
Price Bands	TBA
Lot Size	TBA
Face Value	₹10 per share
Listing Exchange	BSE, NSE
Shareholding pre-issue	5,41,26,560 shares
Shareholding post-issue	To be updated post-IPO

IPO Lots

Application	Lots	Shares	Amount
Retail (Min)	TBA	TBA	TBA
Retail (Max)	TBA	TBA	TBA
S-HNI (Min)	TBA	TBA	TBA
S-HNI (Max)	TBA	TBA	TBA
B-HNI (Min)	TBA	TBA	TBA

G. Surgiwear Limited IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Offer
Retail Shares Offered	Not less than 35% of the Offer
NII (HNI) Shares Offered	Not less than 15% of the Offer

G. Surgiwear Limited IPO Valuation Overview

KPI	Value
Earnings Per Share (EPS)	₹10.74
Price/Earnings (P/E) Ratio	TBD
Return on Net Worth (RoNW)	30.30%
Net Asset Value (NAV)	₹1,448.66
Return on Equity (RoE)	30.30%
Return on Capital Employed (RoCE)	29.66%
EBITDA Margin	44.19%
PAT Margin	25.77%
Debt to Equity Ratio	0.49

Objectives of the IPO Proceeds

The Net Proceeds from the Fresh Issue are intended to be utilised as per the details provided in the table below:

Particulars	Amount (in ₹ million)
Financing capital expenditure for purchase of machinery	1,672.21
Pre-payment/repayment of certain outstanding borrowings	936.37
General corporate purposes*	[●]

Note: *To be determined upon finalisation of the Offer Price and updated in the Prospectus prior to filing with the RoC. The amount utilised for general corporate purposes shall not exceed 25% of the Gross Proceeds.

G. Surgiwear Limited Financials (in ₹ million)

Particulars	30 June 2025	31 Mar 2025	31 Mar 2024	31 Mar 2023
Total Assets	3490.95	3,245.90	2,708.79	2,112.18
Revenue from Operations	446.13	2,239.76	1,687.36	1,509.48
Profit After Tax	56.14	579.50	224.96	135.42
Reserves and Surplus	1961.10	1,899.25	1,318.08	1,095.97
Total Borrowings	1216.2	935.47	1,022.60	729.80
Total Liabilities	1516.65	1,333.45	1,377.51	1,003.01

Financial Status of G. Surgiwear Limited

G. Surgiwear Limited IPO Strengths

Over Three Decades of Experience with a Broad and Diversified Product Portfolio

G.Surgiwear Limited, incorporated in 1990, brings over three decades of deep expertise in designing, developing, and manufacturing surgical products and medical implants. The company has successfully diversified its portfolio from initial products like disposable drapes and hydrocephalus shunts to a wide array of over 1,600 SKUs across categories including cranial fixation systems, bone cement, and apparel. This diversification mitigates dependence on any single product line, provides a balanced revenue base, and allows the company to cater to multiple surgical specialties and healthcare institutions, enhancing its market resilience and cross-selling opportunities.

Well-Equipped, Strategically Located Manufacturing Facility

The company operates an integrated, WHO-GMP and multiple ISO-certified manufacturing facility in Shahjahanpur, Uttar Pradesh. This facility is equipped with advanced machinery, including 3D printers, CNC machines, and proprietary in-house developed equipment like fabric-laying machines with laser cutting. Its strategic location offers proximity to urban centres, industrial hubs, and key logistics corridors, facilitating efficient sourcing and distribution. This combination of advanced, partly automated manufacturing capabilities and a strategic location drives high operational efficiency, as evidenced by the company’s industry-leading EBITDA margin of 44.19% in FY25.

Established Domestic and International Distribution Network

G.Surgiwear has built a formidable distribution network that ensures broad market access. Domestically, it is served by 36 super-stockists and 554 distributors across 23 states and union territories, ensuring deep penetration and product availability even in Tier II and III cities. Internationally, its products are exported to over 40 countries across Africa, South Asia, and South America through a network of 58 distributors. This extensive reach enables the company to efficiently service a diverse customer base of hospitals, clinics, and healthcare providers, reducing delivery timelines and optimizing logistics costs.

Well-Positioned in a Growing Healthcare and Surgical Products Market

The company operates in the structural growth sector of Indian healthcare, which is driven by hospital expansion, rising insurance penetration, government initiatives like Ayushman Bharat, and an increasing disease burden. The surgical implants segment, in particular, is projected to grow at a CAGR of ~7.6%. With its established brand, diverse product portfolio spanning both consumables and implants, and extensive distribution network, G. Surgiwear is strategically positioned to capture this incremental demand from both public sector procurement and private healthcare expansion, especially in high-growth orthopaedic and neurology segments.

Experienced Promoter and Management Team

The company is led by its promoter, Ghanshyam Das Agarwal, who holds an MBBS and MS degree, providing a rare and valuable clinical perspective to product design and development. This clinical insight ensures products are developed with a strong understanding of end-user (surgeon and patient) needs. The promoter family and the professional management team collectively bring decades of experience across manufacturing, R&D, finance, and international business. This blend of clinical expertise and seasoned management enables informed strategic decision-making, robust operational execution, and sustained innovation.

Track Record of Strong Operational and Financial Performance

G. Surgiwear has demonstrated exceptional financial growth and profitability. Revenue grew at a CAGR of 21.81% from FY23 to FY25, while Profit After Tax grew at an astounding CAGR of 106.86% in the same period, highlighting massive margin expansion. The company boasts industry-leading metrics: the highest PAT Margin (25.77%) and RoE (30.30%) among its peers in FY25, as per a 1Lattice report. Its EBITDA margin of 44.19% was also the highest, underscoring superior operational efficiency, cost control, and the benefits of its integrated manufacturing model.

More About G. Surgiwear Limited

Business Overview and Legacy

G. Surgiwear Limited is a pioneering Indian manufacturer in the medical devices sector, with a rich history spanning over 34 years since its incorporation in 1990. The company has evolved from a manufacturer of basic surgical consumables to a diversified player producing complex, life-saving implantable devices. It holds a DSIR-recognized in-house R&D centre, underscoring its commitment to innovation, and possesses 31 Indian and 8 international patents.

Core Product Portfolio

The company’s extensive portfolio of over 1,600 SKUs is categorized into:

I. Disposable Drapes & Dressings:
The largest category by revenue (~47% in Q1 FY26), includes sterile sheets and wound care products used in operating theatres.

II. Andrology & Shunt Systems:
Includes hydrocephalus shunt systems used to treat neurological conditions by draining excess cerebrospinal fluid from the brain.

III. Cranial Fixation Systems:
Devices used in neurosurgery to stabilize the skull after procedures.

IV. Orthopaedic and Bone Grafting Products:
Includes bone cement (hydroxyapatite) and recently launched spinal cages. The company has approvals for Total Hip Replacement (THR) and a test license for Total Knee Replacement (TKR) implants, marking its entry into large orthopaedic segments.

V. Apparels and Others:
Includes surgical apparel and other instruments.

Manufacturing and Quality Infrastructure

I. Integrated Facility:
The company’s manufacturing prowess is centered around its integrated facility in Shahjahanpur, Uttar Pradesh. This facility allows end-to-end control from raw material to finished product.

II. Proprietary Technology:
It features advanced and partly in-house developed machinery, such as proprietary fabric-laying machines with integrated laser cutting, which enhance precision, reduce waste, and improve efficiency.

III. Stringent Certifications:
The facility is certified under WHO-GMP, ISO 13485:2016 (for medical devices), ISO 9001:2015, and ISO 10002:2018, ensuring global standards of quality and compliance.

IV. Sustainability Initiatives:
It includes a captive solar power plant, contributing to reduced operational costs and a smaller environmental footprint.

Market Reach and Distribution

I. Domestic Dominance:
G. Surgiwear has built an extensive distribution framework within India, comprising 36 super-stockists and 554 distributors across 23 states and UTs. This network ensures its products reach a wide range of end-users, from large hospitals in metros to nursing homes in smaller cities.

II. Global Exports:
The company exports to over 40 countries, primarily in Africa, South Asia, and South America, through 58 international distributors. It holds necessary export certifications like an Importer-Exporter Code and a Free Sale Certificate.

III. Sales Model:
A direct marketing team of over 200 personnel supports the distributor network, engaging with hospitals and healthcare professionals to drive adoption and gather market insights.

Financial and Operational Highlights

The company’s financial trajectory is marked by high growth and industry-leading profitability. Key highlights include:

I. Revenue Growth:
Steady increase from ₹1,509.48 million in FY23 to ₹2,239.76 million in FY25.

II. Profitability Surge:
PAT margin expanded dramatically from 8.97% in FY23 to 25.77% in FY25.

III. Operational Efficiency:
EBITDA Margin of 44.19% in FY25 was the highest among peers, reflecting cost-efficient manufacturing and strong pricing power.

IV. Healthy Balance Sheet:
Maintains a conservative leverage profile with a Debt-to-Equity ratio of 0.49.

Industry Outlook

The Indian and global healthcare and medical devices sector is poised for sustained, structural growth, driven by demographic, economic, and policy tailwinds.

Indian Healthcare Market Dynamics

I. The Indian healthcare market is expected to grow at a CAGR of approximately 6.4% from 2024 to 2029. Key growth drivers include:

II. Hospital Infrastructure Expansion:
Rapid growth of hospital beds, especially beyond metros into Tier II and III cities.

III. Government Initiatives:
Schemes like Ayushman Bharat (PM-JAY) are increasing access to surgical care for millions, directly boosting demand for medical devices and consumables.

IV. Rising Insurance Penetration:
Increasing from ~14.7% of total healthcare expenditure, promoting elective surgeries.

V. Demographic Shifts:
Aging population and rising prevalence of chronic diseases (osteoarthritis, neurological disorders) are increasing the surgical procedure volume.

Medical Devices and Implants Market

I. Surgical Procedure Volume:
Approximately 165.7 million procedures are performed annually in India across major specialties, creating a massive demand for surgical products.

II. Orthopaedic Implants:
The Growth Leader: This segment is the largest within the Indian implant market, with a 40.6% share, and is projected to grow at a CAGR of 7.6% through FY30. Growth is fueled by rising joint replacement surgeries, trauma cases, and adoption of advanced technologies.

III. Medical Equipment:
This broader category is expected to grow at an even faster CAGR of ~15.9% by FY30.

IV. Competitive Manufacturing Hub:
India is emerging as a cost-competitive global manufacturing base for medical devices due to skilled labour, technical capabilities, and access to raw materials, reducing import dependency.

Global Market Potential

I. The global implant market is valued at ~US$119.3 billion and is projected to reach US$165.7 billion by 2029, growing at a CAGR of 6.8%.

II. Orthopaedic implants dominate globally as well, expected to reach US$66.7 billion by 2029. Trends like 3D-printed patient-specific implants and minimally invasive techniques are accelerating growth.

III. There is a growing global preference for bundled surgical kits and integrated solutions, particularly from cost-efficient manufacturing bases like India.

How Will G. Surgiwear Limited Benefit

I. The company’s planned expansion into high-growth orthopaedic implant categories (Total Hip and Knee Replacements) directly aligns with the segment projected to grow at 7.6% CAGR in India, allowing it to capture significant new revenue streams in a large, underpenetrated market.

II. The extensive expansion of hospital infrastructure, especially in Tier II/III cities driven by government schemes and private investment, will fuel demand for its broad portfolio of surgical consumables (drapes, dressings) and implants, leveraging its deep domestic distribution network.

III. Government initiatives like Ayushman Bharat, which are increasing surgical access for a vast population, will drive volume growth for essential surgical products, where G. Surgiwear is an established and trusted domestic manufacturer.

IV. India’s emergence as a competitive global manufacturing hub for medical devices positions the company to significantly increase its export footprint, capitalizing on its cost-efficient production, regulatory approvals, and existing distributor relationships in over 40 countries.

V. The growing global trend towards bundled surgical kits and integrated hospital solutions plays to the company’s strength of offering a diverse range of products (from drapes to implants), enabling it to provide comprehensive procedure-specific solutions and improve customer stickiness.

VI. The rising global and domestic demand for advanced, technologically sophisticated implants (e.g., 3D-printed) will be addressed by the company’s DSIR-recognized R&D centre and its capability to develop proprietary manufacturing processes, allowing it to move up the value chain.

Peer Group Comparison

Name of the Company	Total Revenue (₹ Mn)	Face Value (₹)	P/E Ratio*	EPS (₹)	RoNW (%)	NAV (₹)
G. Surgiwear Limited	2,239.76	10	N/A	10.74	30.30%	1,448.66
Peer Group
Poly Medicure Limited	16,698.32	5	52.26	34.13	12.24%	272.95

Key Strategies for G. Surgiwear Limited

Diversify into Orthopaedic Implant Categories (THR & TKR)

G. Surgiwear Limited plans to leverage its manufacturing expertise and R&D capabilities to expand into the high-growth orthopaedic implant market, specifically Total Hip Replacement (THR) and Total Knee Replacement (TKR) systems. The company has already secured manufacturing approvals for THR and a test license for TKR. This strategic move aims to capture a significant share of the Indian orthopaedic implant segment, which is projected to grow at a 7.6% CAGR, by scaling up production, completing pilot testing, and launching commercially with a dedicated marketing team.

Strengthen Foothold in Domestic Markets

The company intends to deepen its penetration in the Indian market, which contributes over 95% of its revenue. It plans to strengthen and selectively expand its extensive network of 36 super-stockists and 554 distributors, with a focus on Tier II and III cities where healthcare infrastructure is rapidly growing. This will be supported by augmenting its marketing and sales teams, enhancing engagement with hospitals and surgeons through training programs, and leveraging government healthcare schemes to drive product adoption and market share.

Increase Global Footprint and Brand Recognition

G. Surgiwear aims to expand its international presence by exporting its existing and new orthopaedic product lines to over 40 countries, focusing on Africa, South Asia, and South America. The strategy involves leveraging its existing network of 58 international distributors, appointing new distributors in high-potential regions, and participating in global trade fairs like MEDICA. The company will manage market-specific regulatory approvals to ensure compliance and capitalize on the growing global demand for cost-competitive, quality medical devices from India.

Enhance Operational Efficiencies and Expand Production

The company is focused on continuous improvement of manufacturing efficiency through increased automation, digitization of processes, and optimized inventory management at its Shahjahanpur facility. A key part of this strategy is a significant capital expenditure plan (partly funded by the IPO) of ₹1,672.21 million to purchase advanced machinery for manufacturing hip and knee implants. These investments are aimed at increasing capacity, supporting growth initiatives, and maintaining the high EBITDA margins that are a hallmark of its operational excellence.

Cross-Product Integration for Hospital Solutions

G. Surgiwear plans to leverage its diverse product portfolio to offer integrated surgical-care bundles to hospitals. By combining complementary products like implants with the necessary disposable drapes, dressings, and accessories used in the same procedure, the company can provide a streamlined procurement solution. This strategy aims to enhance customer stickiness, improve operational synergies in manufacturing and distribution, and position the company as a comprehensive, single-source supplier for hospitals, both in India and in select export markets.