Galaxy Medicare Launches ₹22 Crore SME IPO Tomorrow to Fund Machinery, Working Capital, and Expansion

New Delhi, Sep 9, 2025 – Galaxy Medicare Limited (NSE: GML) will launch its ₹22 crore SME IPO on NSE Emerge. The IPO will remain open for subscription from September 10 to 12, 2025. The shares are scheduled to list on September 17, 2025.

IPO Details

As per the company’s red herring prospectus, the IPO is a book-building issue for which the price band has been fixed at ₹51-₹54 per share. The total issue is for 41,32,000 shares (₹22 crore), comprising 33,08,000 shares as fresh issues and 8,24,000 shares under offer for sale (OFS) by promoter Dillip Kumar Das. Prabhat Financial Services Ltd has been appointed as the market maker for the IPO, while Cameo Corporate Services Ltd will be acting as the registrar.

The lot size for the issue is set at 2,000 shares, totalling around ₹1,02,000 – ₹1,08,000, whereas the minimum investment requirement is set at 4,000 shares, i.e., two lots for retail investors, 6,000 shares, i.e., three lots for High Net Worth Individual Investors (HIN) and 20,000 shares, i.e., ten lots for the big HNI category in SME IPO.

Objects Of The Issue

The company plans to utilise the IPO’s net proceeds for the following:

1. Capital expenditure towards the purchase of machinery – ₹488.76 lakh.
2. Working capital requirements – ₹893.96 lakh.
3. General corporate purposes and offer expenses.

Financial Highlights (Restated)

The company delivered steady financial growth in FY25. Its revenues rose from ₹3,615.09 to ₹3,920.16, which is about 9% year-on-year. During the period, profitability came under pressure as it dipped by 9% due to the higher input costs. Despite the mixed outcomes, the overall financial position of the company has strengthened. The company has sustained its demand momentum, cut its borrowings nearly in half, and has also improved its balance sheet resilience. Fueled by the positive results, shareholder value also saw improvement, as both net worth and book value per share advanced further.

Key Risks From RHP

Some of the key risks that the IPO has highlighted in its red herring prospectus:

• There is a slight risk of customer concentration as the top 5 customers contributed 52% of revenue in FY25.
• The company also has a reasonable risk of regional concentration, as 56% of its domestic revenue comes from western India (Maharashtra and Gujarat).
• The company has a high supplier dependency, as the top 10 suppliers contributed 65% of raw material purchases in FY25.
• As the company is exposed to geopolitical disruptions, it has some export risks, which also resulted in revenue loss reported in FY25 due to Bangladesh unrest.
• The working capital intensity is not exactly favourable as the inventory and receivables form a large part of current assets.
• The company faces several challenges with regulatory compliance, notably delayed GST, TDS, PF, and ESI filings in the past.
• Its promoter’s average acquisition cost is significantly lower (₹0.79–₹1.84 per share) than the IPO price.

Outlook And Investor Takeaway

The company’s decision to bring an IPO shows that it focuses on long-term stability even as short-term margins remain constrained. It is a reflection of the company’s confidence in its growth, which is backed by positive financial results, including debt reduction. As Galaxy Medicare IPO opens for bids, investors should track customer concentration risks and working capital management as key performance signals.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations