Avience Biomedicals IPO opens June 18 to fund expansion
Avience Biomedicals Limited is launching an SME IPO on June 18, 2026, to raise ₹24.21 crore for a new manufacturing facility and working capital. The company reported an 88.81% revenue jump in FY25 to ₹45.24 crore but faces risks including negative cash flows and high trading revenue dependency.
*this image is generated using AI for illustrative purposes only.
Avience Biomedicals Limited has filed its Draft Red Herring Prospectus (DRHP) for an SME IPO scheduled to open on June 18, 2026, and close on June 22, 2026. The company, which manufactures and trades In Vitro Diagnostic (IVD) products and medical devices, intends to use the net proceeds to establish a greenfield manufacturing unit and fund working capital requirements. The issue aims to support capacity expansion targeting WHO compliance for global market access, despite the company reporting a negative net cash flow of ₹3.19 crore for the period ended January 31, 2026.
Financial Performance
The company demonstrated strong top-line growth in the previous fiscal year. Revenue from operations increased from ₹23.96 crore in FY2024 to ₹45.24 crore in FY2025, representing a growth of 88.81%. Net profit for the same period surged from ₹2.14 crore to ₹7.23 crore, marking a 237.85% increase. For the ten-month period ended January 31, 2026, the company recorded a revenue of ₹41.84 crore and a net profit of ₹5.74 crore.
| Period | Revenue from Operations (₹ Cr) | Net Profit (₹ Cr) | YoY Growth |
|---|---|---|---|
| FY2024 | 23.96 | 2.14 | NA |
| FY2025 | 45.24 | 7.23 | +88.81% |
| 10M FY2026 | 41.84 | 5.74 | NA |
Objects of the Issue
The proceeds from the fresh issue are allocated towards specific capital expenditures and operational needs. The total identified use of proceeds includes ₹15.96 crore for capital expenditure and ₹8.25 crore for funding working capital requirements. The new manufacturing facility will be located at Industrial Plot No. 70, Sector 28, Medical Device Park, YEIDA, Gautam Buddha Nagar, Uttar Pradesh.
| Purpose | Amount (₹ Crore) |
|---|---|
| Capital Expenditure | 15.96 |
| Funding Working Capital | 8.25 |
| Total Identified | 24.21 |
Risk Factors
The DRHP highlights several material risks that potential investors must consider. The company reported a negative net cash flow of ₹3.19 crore for the ten-month period ended January 31, 2026, driven by investing outflows. Additionally, there is a high dependency on trading activities, which contributed 68.44% of revenue as of January 31, 2026. The operations are also geographically concentrated, with the top three states—Delhi, Uttar Pradesh, and Haryana—accounting for 85.12% of domestic revenue.
Operational Overview
Avience Biomedicals operates in the medical consumables sector, catering to pathology labs, hospitals, and research centers. The product portfolio includes diagnostic kits, serology products, and biochemistry analyzers. The company holds certifications such as ISO 13485, ISO 9001, CE marking, and GMP. While the company has expanded its international presence to markets including Dubai, Ethiopia, and Nepal, it remains reliant on imports from China for a portion of its raw materials, ranging from 5.18% to 31.33% of total procurement in recent years.
How will the company mitigate the risks associated with its high dependency on Chinese imports for raw materials?
What is the projected timeline for obtaining WHO compliance for the new greenfield manufacturing facility?
Will the company reduce its reliance on trading activities as the new manufacturing capacity comes online?
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