Earkart Debuts on BSE SME Platform: IPO Subscribed 1.28 Times
Earkart, a HealthTech platform for hearing aids, is listing on BSE SME after closing its Rs 49.26 crore IPO. The IPO was subscribed 1.28 times overall, with non-institutional investors at 1.63 times and retail investors at 0.35 times. The issue price is Rs 135 per share, with a 0% grey market premium. The IPO includes a fresh issue of Rs 44.75 crore and an offer for sale of Rs 4.51 crore. Funds will be used for working capital and expanding the Shop-in-Shop model. Earkart's financials show strong growth with revenue up 35% to Rs 43.20 crore and net profit doubling to Rs 6.90 crore.
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Earkart, a HealthTech platform specializing in hearing aids and assistive devices, is set to make its debut on the BSE SME platform following the closure of its Rs 49.26 crore Initial Public Offering (IPO). The company's shares are expected to list at par with the issue price, as indicated by the grey market premium standing at 0% over the issue price of Rs 135 per share.
IPO Subscription Details
The IPO garnered mixed interest from different investor categories:
- Overall subscription: 1.28 times
- Non-institutional investors: 1.63 times
- Retail investors: 0.35 times
The weak retail participation is noteworthy, with the retail portion being undersubscribed at just 0.35 times.
IPO Structure and Fund Utilization
The IPO comprised two components:
- Fresh issue: Rs 44.75 crore
- Offer for sale: Rs 4.51 crore
Earkart plans to utilize the proceeds for:
- Working capital requirements
- Expansion of the Shop-in-Shop model
Company Overview
Earkart operates as a HealthTech platform focused on hearing aids and assistive devices. Their product range includes:
- Receiver-in-Canal hearing aids
- Invisible hearing aids
- Behind-the-Ear hearing aids
- In-the-Ear hearing aids
- Completely-in-Canal hearing aids
Financial Performance
Earkart has demonstrated strong financial growth:
| Metric | Amount (Rs crore) | Growth |
|---|---|---|
| Revenue | 43.20 | 35.00% |
| Net Profit | 6.90 | >100.00% |
| EBITDA | 9.80 | N/A |
The company's revenue increased by 35.00% to Rs 43.20 crore, while its net profit more than doubled to Rs 6.90 crore. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at Rs 9.80 crore.
As Earkart prepares to list on the BSE SME platform, investors will be closely watching its performance in the public market. The flat grey market premium suggests a cautious sentiment, but the company's strong financial growth could attract investor interest in the long term.
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