KRM Ayurveda's initial public offering has received a strong response from investors, with the issue being subscribed 3.72 times overall. The company's public issue has attracted significant interest across multiple investor categories, demonstrating market confidence in the ayurvedic products manufacturer.

Subscription Performance Across Categories

The retail investor segment emerged as the strongest performer, with the category being oversubscribed by 4.66 times. This robust retail participation indicates strong interest from individual investors in the company's business prospects.

Non-Institutional Investor Response

Non-institutional buyers demonstrated varied levels of participation in the offering. The big HNI (High Net Worth Individual) category showed exceptional demand, subscribing 7.87 times to the issue. Meanwhile, the small HNI segment recorded subscription levels of 3.72 times, matching the overall subscription rate.

Institutional and Employee Participation

Notably, the qualified institutional buyers category and employee reservation portion remained unsubscribed during this period. The absence of institutional participation contrasts with the strong retail and HNI investor interest in the issue.

The overall subscription figure of 3.72 times reflects the combined investor response across all categories, indicating a positive market reception for KRM Ayurveda's public offering.

KRM Ayurveda Limited is preparing to launch its initial public offering worth ₹56.93 crores, scheduled to open on January 19, 2026, and close on January 21, 2026. The company, established in 2019, operates an integrated Ayurvedic healthcare network comprising 6 hospitals and 5 clinics across multiple cities in India, specializing in traditional treatments for chronic conditions including kidney disorders, liver cirrhosis, diabetes, fatty liver, and arthritis.

Company Operations and Business Model

KRM Ayurveda operates a comprehensive healthcare ecosystem that includes in-patient and out-patient care, Panchakarma therapies, specialized treatment clinics, wellness packages, and medicinal product sales. The company also provides telemedicine consulting services with global reach and operates a GMP-certified manufacturing unit for processing, formulation, and marketing of Ayurvedic therapeutic products.

The company's medical team consists of 31 qualified BAMS physicians from CCIM-recognized institutions and 59 certified therapists trained in traditional therapies. The manufacturing facility is certified under Good Manufacturing Practices as per Schedule T of the Drugs and Cosmetics Act, 1940, ensuring compliance with regulatory standards set by the Ministry of AYUSH and CDSCO.

Financial Performance Analysis

The company's financial performance shows mixed trends over the past three years. Revenue from operations declined from ₹89.29 crores in FY2023 to ₹67.16 crores in FY2024, representing a 24.79% decrease attributed to strategic repositioning toward hospital services. However, FY2025 showed recovery with revenue reaching ₹76.55 crores, marking a 13.96% year-over-year growth.

Profitability metrics demonstrate significant improvement in FY2025, with profit after tax reaching ₹12.10 crores and PAT margin expanding to 15.72% from 5.05% in the previous year. Total assets grew substantially by 52.12% from FY2024 to FY2025, reaching ₹66.79 crores.

IPO Proceeds Utilization

The ₹56.93 crore IPO proceeds will be allocated across six key areas to support the company's growth initiatives and operational requirements.

The largest allocation of 40.22% toward working capital requirements reflects the company's capital-intensive business model, with working capital needs increasing from ₹4.44 crores in FY2023 to ₹33.09 crores in September 2025.

Key Strengths and Risk Factors

KRM Ayurveda's competitive advantages include its qualified medical team, GMP-certified manufacturing capabilities, established infrastructure, and diversified product portfolio. The company has built long-term relationships with repeat institutional and corporate clients, providing revenue visibility and operational stability.

However, several risk factors require investor attention. The company experienced high employee attrition of 78.47% in FY2024, though this improved to 31.75% in FY2025. Geographic concentration presents another concern, with Delhi and Haryana contributing 68.44% of revenue in September 2025. Additionally, the company reported negative operating cash flows of ₹0.03 crores in FY2025 and ₹0.89 crores in FY2024.

Investment Considerations

The company operates in the growing Ayurvedic healthcare segment, leveraging India's traditional medicine heritage with modern healthcare delivery systems. Key operational metrics include a current ratio of 1.66x and return on equity of 50.67% in FY2025, indicating strong profitability recovery.

Investors should consider the company's working capital intensive nature, with projected requirements reaching ₹68.22 crores by FY2027. The business model's dependency on third-party logistics and significant revenue from insurance providers with 150-180 day payment cycles also present operational challenges that require monitoring.